The United States Navy says it will not send any ships next month and no additional sailors or Marines will head to the city for the annual Fleet Week celebration.
Cuts to the defense budget under the sequester are being blamed.
But a spokesperson says any Navy, Marine Corps and Coast Guard members who happen to be in the city will be allowed to take part in any local events that still take place.
City officials say Fleet Week was expected to generate about $20 million.
In a statement, the city said, "We understand the Navy’s budgetary limitations and hope that the Fleet Week tradition can continue in 2014."