The Funk Parade will happen next month, the organizers say, after a number of local businesses, crowdfunding backers and D.C. agencies stepped in to help the show go on after.
The parade and fair are scheduled for Saturday, May 12.
Organizers said Friday that they met their $60,000 fundraising goal, weeks after announcing the event could be cancelled.
A crowdfunding campaign brought in more than $20,000, organizers say, while the District government pledged $25,000. Local businesses including Chuck Levin's Washington Music Center also contributed. Uber also made a contribution, organizers said.
"We are bringing the funk," said DC Mayor Muriel Bowser. "The Funk Parade is a staple of our community, exemplifies the creative passion that exists across all eight wards, and we are proud to support it."
The annual parade was designed to bring people together through music, dance and the visual arts, and to celebrate and share the history of U Street.
Last year's festival featured artists like the Backyard Band, Sun Ra Arkestra and Batala Washington.
The first Funk Parade happened in 2014 with more than 25,000 Washingtonians participating.