A new report from Out Leadership is raising concerns about the growing divide between LGBTQ+-inclusive states and states advancing anti-LGBTQ+ policies, while also highlighting what critics describe as weakening corporate support for the community. The 2026 State LGBTQ+ Business Climate Index found that “the gap between inclusive and hostile states is wider than it has ever been, and it is still widening.”
The report expanded its methodology this year to include measures such as restrictions on drag events, access to gender-affirming care, and policies affecting transgender athletes. Massachusetts ranked highest on the index, while Arkansas, Tennessee, Idaho, South Carolina, and Florida ranked at the bottom. The report argues that anti-LGBTQ+ policies create challenges for businesses by affecting talent recruitment, retention, and brand reputation.
At the same time, critics say many corporations that once publicly supported LGBTQ+ inclusion are now scaling back diversity, equity, and inclusion programs amid pressure from President Donald Trump and his allies. Companies including Lowe’s and Walmart have reportedly reduced DEI initiatives, including LGBTQ+-inclusive programs. More than half of the Fortune 500 companies that previously participated in the Human Rights Campaign’s Corporate Equality Index reportedly opted out this year.
Funding for Pride events has also declined as some longtime sponsors pull back support. In a notable move, this year’s Out Leadership report left its sponsor page intentionally blank, saying the decision was made “to protect our members, their work, and their people.” The report and its reaction underscore growing concerns within the LGBTQ+ community about whether corporate support remains dependable during periods of political pressure.
