Auckland Council's event agency (ATEED) will no longer be funding the Santa Parade.
The agency will continue to fund other community events such as Diwali, the Lantern Festival and Pasifica.
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Chairman of Auckland Children's Christmas Parade Trust, Michael Barnett, says he is frustrated ATEED has decided to discontinue funding.
"Most ratepayers would support the Parade which is a national and iconic event that Auckland has hosted for 85 years."
He says although the parade receives funding from Farmers and other businesses, the support from ATEED on behalf of the council was a huge help in maintaining quality and balancing the budget.