A pride flag flies at the Salt Lake City & County Building on Thursday, March 13, 2025. (McKenzie Romero/Utah News Dispatch)
The ongoing drama over whether the film festival that helped put Utah on the world map will stay in the conservative state — or move elsewhere — is heating up.
Even though the Utah Legislature included $3.5 million in its 2025 budget to help entice the Sundance Film Festival to stay, a new wrinkle may be further jeopardizing the state’s chances as festival organizers consider relocating to other states that have offered up millions more in tax incentives to lure it away.
The issue? The Utah Legislature’s recent approval of a bill aimed at banning pride or LGBTQ+ flags in schools and all government buildings, which its supporters say is meant to promote “political neutrality” in government spaces.
The Hollywood news site Deadline reported that bill, HB77, could be “an eleventh-hour obstacle to the Beehive State’s hopes of keeping” Sundance, which has called the Summit County ski town of Park City its home for the past 40 years.
Utah Legislature bans pride flags from schools, public buildings
Deadline quoted an unnamed “Sundance insider” expressing frustrations with the bill on Tuesday after what the outlet described as a “virtual meeting between united Utah leaders and members of the festival’s selection committee.”
“What are they thinking?” Deadline reported the Sundance insider as saying. “Utah is Utah, but this goes to the heart of the community Sundance has worked years and years to develop.”
Deadline also reported that insider called the flag ban “a terrible law, a terrible look for the state.”
“No matter what they say, we all know who it’s aimed at — the LGBTQ+ community, and that’s unacceptable,” the outlet quoted that insider saying.
Groups including Equality Utah (the state’s largest LGBTQ+ advocacy group) and the American Civil Liberties Union of Utah have urged the governor to veto HB77.
“The government should not be in the business of banning symbols that help people feel seen and welcomed,” the ACLU of Utah said in a letter to Utah Gov. Spencer Cox last week. “Beyond stoking fear among LGBTQ+ Utahns, this bill sets a dangerous precedent that threatens free speech for everyone.”
When asked late Friday night — the last day of the Utah Legislature’s 2025 session — whether he would veto HB77, Cox initially told reporters he wouldn’t, before hedging and giving a noncommittal response.
“No, I won’t veto that bill. At least I don’t think I will. I don’t know. Maybe I will. I don’t know,” he said, adding that he wouldn’t talk that night about any potential vetos, saying he needed a chance to study the legislation. “I don’t know if I’m going to sign that one. I’ll probably sign that one. I need to look at it.”
Cox’s office did not immediately return a request for comment Thursday about the Deadline story and how the flag bill may be impacting Utah’s chances at keeping Sundance. However, Cox did tell Utah News Dispatch on Friday that he’ll be looking into and weighing possible constitutional concerns with the bill — while he also acknowledged the arguments in favor of it.
“You know, I always hear, like, why would you want to do this? And then I ask the question, ‘Would you be OK if your kid’s teacher hung a MAGA flag in their room?’ And they say, ‘Of course not.’ And I’m like, well, OK,” Cox said. “This is supposed to be a neutral bill, that’s the idea behind it, and if you’re not OK with one type of flag, why would you be OK with the other?”
Cox would not say whether he’d sign the bill or not, but he added, “I hate these types of culture wars that we’re seeing. Never been a fan of them, but we’ll review the bill and see where we end up.”
Deadline reported that the “likelihood” that Cox will sign HB77 “has caused red-state Utah to find itself at deep odds with Sundance’s expressed values of a ‘vibrant, inviting and inclusive festival.’”
“Yes, HB77 could contribute to Sundance’s decision to leave Utah,” Troy Williams, executive director of Utah, wrote in a post on X Wednesday, urging Cox, “please … veto this bill.”
Some Utah lawmakers at odds over effort to keep Sundance
State leaders have been working to keep Sundance in the state, putting taxpayer money where their mouth is. In his budget recommendation, Cox urged legislative leaders to prioritize $3 million for the festival. The Utah Legislature ultimately funded more than that — $3.5 million.
However, there are some Republican lawmakers who would happily wave goodbye to Sundance — and weren’t happy about including that much in the state’s budget to get it to stay.
“Bye Felicia,” the Senate sponsor of the flag ban bill, Sen. Dan McCay, R-Riverton, posted on X on Wednesday in response to the Deadline article. “Sundance promotes porn. Sundance promotes alternative lifestyles. Sundance promotes anti-lds themes. Sundance does not fit in Utah anymore.”
Bye Felicia…
Sundance promotes porn
Sundance promotes alternative lifestyles
Sundance promotes anti-lds themesSundance does not fit in Utah anymore.https://t.co/pZ2MSrbtNd
— Daniel McCay (@danmccay) March 13, 2025
McCay later posted again, adding, “I’m fine with the first amendment and allowing alternative viewpoints but I am not fine giving @sundancefest $3.5M to facilitate their trash. I’d rather have a random drawing to give $3.5M to any young Utah family that has their first child.”
Rep. Trevor Lee, R-Layton — the sponsor of HB77 — reposted McCay’s post regarding the Deadline story. On Wednesday, Lee also reposted a photo of Salt Lake City flying an LGBTQ+ flag, saying, “The days of pushing political agendas on the taxpayers dime is over in Utah.”
His post also referred to “May 7,” the date his bill will take effect as long as it’s not vetoed. If it becomes law, only a prescriptive list of flags included in the bill would be allowed to be displayed in schools and on government property, including the U.S. flag, the state flag, military flags, Olympic flags, college or university flags, or others.
On Friday night, as lawmakers were finalizing their 2025 session, Salt Lake City leaders raised an LGBTQ+ flag at the Salt Lake City & County Building seemingly in defiance of the flag ban bill, which won final legislative approval the day before.
That flag continued to fly at City Hall as of Thursday. Salt Lake City Mayor Erin Mendenhall — who is involved in efforts to keep Sundance in Utah — issued a prepared statement to Utah News Dispatch in response to the flag ban bill and its potential impact on Sundance’s appetite to stay.
“There is not a state in this nation where inclusivity, diversity and empathy aren’t under attack, and everyone has a role in standing up for those values,” Mendenhall said. “Salt Lake City will never stop supporting our neighbors, including the LGBTQIA community, and Sundance is an incredible partner in that support. The power of amplifying voices and creating change through art is needed now more than ever in this ongoing work.”
One of the Legislature’s top Republicans, Senate President Stuart Adams, R-Layton, also issued a statement Thursday expressing a desire to keep Sundance in Utah.
“As Sundance weighs its future, I sincerely hope they choose to stay in Utah, maintaining our valuable partnership,” Adams said. “Our state has long embraced hosting events of global significance, such as the NBA All-Star Game and the Olympics, showcasing Utah’s ability to bring people together from around the world. Our state’s business-friendly landscape, world-class skiing and high volunteerism have played a pivotal role in shaping Sundance into what it is today.”
Adams continued: “Sundance is an example of Utah’s creative spirit, flourishing amidst a supportive economic and community environment. I firmly believe its continued presence would benefit Utah, the film festival and its attendees.”
Adams also highlighted legislation passed 10 years ago known as the “Fairness for All” initiative, which included two bills that enshrined protections against discrimination toward LGBTQ+ people and protected religious freedom, which garnered national attention “by uniting diverse perspectives to create fair policies that ensure equal protection and opportunities for everyone.”
“We are committed to continuing this approach by upholding the spirit of fairness in all aspects,” Adams said.
The 3 states competing for Sundance
Looking ahead to when its contract with Park City expires after the 2026 festival, Sundance organizers are considering three finalists for its new home. It could either stay in Utah by accepting a joint bid from Salt Lake City and Park City, or it could relocate to one of two new host cities: Boulder, Colorado or Cincinnati, Ohio.
The Democratic-controlled state of Colorado could be a strong contender for the Sundance Film Festival. The Colorado House on Wednesday advanced a bill that would create up to $34 million in tax credits over the next 10 years (or $3 to $5 million per year) for the film festival.
“Colorado would be the perfect place for the Sundance Film Festival to call home,” said Rep. Brianna Titone, D-Arvada, in a prepared statement. “This iconic film festival would solidify Colorado’s reputation as a destination for the arts, boosting tourism and significant economic growth in the process. The legislation we advanced today encourages the world-renowned Sundance Film Festival to call Colorado home for the next ten years.”
Salt Lake and Park City make the final cut to host Sundance in 2027
Cincinnati city officials have also approved a resolution allocating an initial $2.5 million to attracting Sundance — and city leaders have signaled they’d be prepared to add another $2.5 million if festival organizers pick their city.
Last year, the Sundance Film Festival generated about $132 million in gross domestic product for Utah, 1,730 local jobs, $69.7 million in Utah wages, and $13.8 million in state and local tax revenue, according to its 2024 economic impact report.
In January, Cox told reporters during his monthly PBS Utah news conference that he felt “very good” about Utah’s chances of keeping Sundance.
“It may not be the most lucrative package. There are some other states who can probably throw some more money at it,” Cox said at the time, though he argued Utah is part of Sundance’s history and DNA, adding that the plan to have Salt Lake City and Park City work together to keep the festival is “a brilliant plan.”
“So I would be surprised if they didn’t stay, but again I don’t get to make that decision. We’re certainly hopeful,” Cox said.
He added that Utah “went through this” when the Outdoor Retailer trade show left the state in 2017 due to disagreements with then-Gov. Gary Herbert over public lands issues, but in 2023 it returned to Salt Lake City.
“Outdoor Retailers made a huge mistake. They thought it would be better. They chased the money and the politics, and they went somewhere else, and it didn’t work out for them, and they came back,” Cox said. “I hope that we don’t have a repeat of that with Sundance, because Sundance is so important.”
He added: “Sundance is Utah, and Utah is Sundance. You can’t really separate those two. So we’re really hopeful that we can provide the type of package … to keep Sundance here.”
Asked about Colorado’s tax incentive offer in that January news conference, Cox said Utah is “not going to throw $34 million in tax incentives” at Sundance. He said Utah is competitive in other ways.
“If it’s only about chasing money, then they can do that,” he said. “Colorado can do that. That’s perfectly fine. … I don’t think the taxpayers of Utah would appreciate a number of that size, but there are some things we can do.”
While Cox added that he doesn’t “love all the movies at Sundance, many of them are not my taste,” he said he does appreciate “the creativity that it brings to our state” and its economic impact. However, he said Utah’s economy is robust enough that it would be just fine without Sundance.
“There’s a reason why these other states are chasing it so desperately, because they’re trying to catch up with Utah,” Cox said. “They’re desperate for some of the advantages that we have. Our economy will be OK, it won’t take a hit if Sundance were to leave, but that doesn’t mean we shouldn’t do everything we can to keep it here.”
“I care deeply about Sundance,” he added, calling many of those involved “dear friends.” He then directly addressed Sundance organizers and said, “This is your home, and we desperately hope it will be your home for forever.”
It’s not yet clear exactly when Sundance organizers will decide on the festival’s future host, but it’s expected sometime soon. Last month, festival director Eugene Hernandez told Deadline, “We hope to have a decision in place by end of March or early April.”
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