New York has taken another bold step in using cannabis tax revenue to drive community change, as it unveils the Community Reinvestment Program, the first state-funded cannabis cash grant initiative. This $5 million program is set to provide crucial support to nonprofits serving youth in communities disproportionately impacted by marijuana prohibition.
The Community Reinvestment Program offers a unique opportunity for nonprofit organizations. These grants, which award up to $100,000 each, aim to support nonprofits working with young people from birth to age 24, focusing on regions of New York that were most affected by the War on Drugs.
Building a Brighter Future
Felicia A.B. Reid, Acting Executive Director of the Office of Cannabis Management (OCM), expressed her excitement about the initiative:
“New York is putting cannabis tax dollars to work for the next generation; this $5 million is the first of many down payments on the promise of what the future holds.”
This initiative marks a significant milestone in the state’s ongoing efforts to use cannabis legalization as a vehicle for social justice and community reinvestment.
A Fair Chance for All
Nonprofits applying for these grants don’t need to be involved with cannabis work, nor are they restricted by whether their municipality permits cannabis sales. The Community Reinvestment Program welcomes applications from all qualifying 501(c)(3) organizations, ensuring widespread participation and support.
To ensure fairness and equity, OCM has developed a tiered grant system:
- Up to 13 grants of $100,000 each will be awarded to nonprofits in the largest counties, including the five New York City boroughs, Long Island, and counties like Onondaga, Orange, Rockland, and Westchester.
- An additional 10 grants of $100,000 each will be distributed to nonprofits in other areas of the state.
If funds remain after this round, additional grants will be given to lower-scoring applicants in higher-population counties.
Cannabis and Community
This program is a vital part of New York’s larger vision for using cannabis tax revenue to give back to communities affected by marijuana prohibition. The state’s Marijuana Regulation and Taxation Act of 2021 mandates that 40% of cannabis tax proceeds be allocated to community reinvestment. While this first round of grants is funded by general state tax revenue, future grants will be directly supported by cannabis sales.
New York’s legal cannabis market has seen a slow rollout, but 2024 marks the first year of significant legal sales across the state. The hope is that reinvesting in these communities will motivate more consumers to purchase from legal dispensaries. Currently, the state is battling a persistent illegal market, with over 10,000 unlicensed shops still operating despite enforcement efforts.
Tabatha Robinson, OCM’s Director of Economic Development, encourages consumers to think about the broader impact of their purchases:
“If anyone needs another reason why buying cannabis from licensed dispensaries is the best option, here you go. Every dollar spent in a legal shop contributes to the important work of reinvesting in communities harmed by prohibition.”
Applying for the Grant
Nonprofits interested in applying for this groundbreaking grant opportunity can find more information on the Office of Cannabis Management’s website at cannabis.ny.gov.
Moving Forward: A Path to Equity
This $5 million initiative is just the beginning. As New York continues to develop its legal cannabis market, the state is committed to ensuring that the tax revenue generated from cannabis sales goes back into the communities that have been disproportionately harmed by past cannabis-related policies. The Community Reinvestment Program is a crucial first step toward creating a more equitable future for New Yorkers.
