With so many frontal attacks on the LGBTQ+ community coming from the federal government, it’s easy to overlook the impact from the private sector. But according to a new report from Out Leadership, which describes itself as “the global LGBTQ+ network,” it finds that the red and blue state divide matters and affects the ability of businesses to thrive.

According to the 2026 State LGBTQ+ Business Climate Index, “the gap between inclusive and hostile states is wider than it has ever been, and it is still widening.” Indeed, the current index, the eighth that Out Leadership has released, expanded its methodology to include 12 new measures, including trans athletes’ participation access, restrictions on drag queen events, and adult access to gender-affirming care.

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Not surprisingly, blue states score strongly on the index, with Massachusetts at the top. The bottom five are (starting with the worst) Arkansas, Tennessee, Idaho, South Carolina, and Florida.

Anti-LGBTQ+ policy creates a hostile environment for business, the report argues. “Discrimination against LGBTQ+ people creates serious challenges for talent mobility, retention, and development—and creates brand risk,” it states.

All of which is true – as far as it goes.

Business has always been a fickle ally. For years, corporations have proclaimed their affection for the LGBTQ+ community while at the same time shoveling money at politicians who are doing everything possible to make the community’s life hell. Companies that have supported LGBTQ+ events and brag about their LGBTQ+ employee resource groups (ERGs) have funded Republicans who are responsible for many of the new metrics that were added to Out Leadership’s index.

With the second Trump administration, the two sides of business have increasingly tilted toward the wrong side. When Trump and his allies complained about diversity, multiple corporations suddenly eliminated their diversity programs. Companies like Lowe’s and Walmart made a point of walking back their DEI programs, taking their cue from Trump’s attacks. That included, specifically, dropping their LGBTQ+-inclusive programs.

As a sign of just how much business has kowtowed to Trump, more than half the Fortune 500 companies that had happily participated in HRC’s Corporate Equality Index suddenly opted out this year. Apparently, the good PR the companies felt that they got from talking about how well they treat their LGBTQ+ employees was outweighed by their fear of becoming a Trump target.

Unsurprisingly, businesses have shown their discomfort by using the language they speak best: money. Funding for Pride events this year has been drying upbecause the same companies that were happy to be seen as sponsors in the past are showing that they were fair-weather friends at best.

To underscore just how much business is afraid of the administration, this year’s State LGBTQ+ Business Climate Index omits the usual page of logo soup thanking sponsors. Instead, there is a page left intentionally blank. “To protect our members, their work, and their people, we have made the deliberate choice to keep their names private, shielding them from scrutiny they did not invite and do not deserve,” the report leads.

Apparently, the closet is okay for business. 

Indeed, looking at the member companies in last year’s report shows just how unreliable their support can be. In addition to Walmart, at least three law firms have caved into Trump and promised his administration hundreds of millions of dollars in “pro bono” legal help. The CEOs of Amazon (Jeff Bezos) and Blackstone (Steven Schwarzman) have cozied up to Trump, recognizing the financial benefits.

Unfortunately, the reality is that a business’s first loyalty is not to equality but to the bottom line. Yes, corporations want to attract top talent, and that talent often leans liberal. But it’s pretty simple to put a wall between HR policies and the C-suite’s interests. Supporting the LGBTQ+ community is decorative, like parsley. The steak is the big money, like government contracts, or freedom from government pressure, like Trump lawsuits.

This isn’t to minimize the importance of an LGBTQ+-friendly workplace. But if you’re looking for bigger change, corporations aren’t dependable supporters.

The question is, once things swing back in the other direction (assuming that they do), will business follow suit? How will they explain away selling out their supposed principles? The odds are that they will just revert to their previous behavior as if nothing had ever happened. 

And really, who can hold them accountable? Individuals may express their opinions with boycotts or cancellations, but those aren’t likely to make much of a difference to the bottom line. If anything, the Bud Light and Target controversies show just whose opinion corporations value.

The current flight of business into the arms of the Trump administration is a useful reminder of where companies’ loyalties lie. In the end, there’s only one color in the rainbow flag that matters to them: green.