Ironically, canonically his dad participated in the George Floyd protests (or rather, protests for equality when the George Floyd protests were happening in RL)
Elmo’s dad looks like a dude who was a punk leftist in the 90’s but purely for the social aspects. In the modern day he still smokes pot but is a very conservative landlord.
Elmo’s mom probably owns and operates one of those grocery stores that has a hippie like aesthetic- has stuff like CBD/D8 chocolate. She also horribly underpays her workers and is extremely anti-union.
She has called the police on the Grouch multiple times for being near her store. Ironically, her husband also constructively (illegal) evicted him from one his properties by shutting of his utilities including the AC in the summer.
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https://youtu.be/kQ-ceJaRW94