"The costs of producing a festival of this size have risen rapidly across every part of the event, and we do not have the same capital or backing as larger players to absorb those pressures," organizers said.
Last year, the festival was canceled due to uncertainty surrounding artists' visas.
Organizers said the hardest part of the decision was knowing the impact on local vendors and staff.
They also announced a free street festival the weekend of September 18.
"No tickets. No barriers. Solo nuestra comunidad," they said.
To those who purchased tickets for the 2026 festival at Union Park, refunds are expected to be issued automatically.