The first grant program financed with tax revenue from legal cannabis sales has opened in New York, with $5 million available. The grant program, called the “Community Reinvestment Program,” will provide $100,000 to nonprofits that serve young people from birth to age 24, focused on communities that were historically overburdened by marijuana prohibition.
“The Community Reinvestment Program is a thrilling opportunity,” said Felicia A.B. Reid, the acting executive director of the state Office of Cannabis Management. “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.”
Any 501©3-designated nonprofit can apply for the grant money. They don’t have to do any work related to cannabis, and nonprofits in municipalities that don’t permit cannabis sales are still eligible. Applications will be graded and tiered for review, with the highest-scoring grants provided first.
OCM has established a tiered system for the grants — up to 13 awards of $100,000 each will be given to nonprofits in the largest counties in New York, including the five New York City boroughs, Long Island’s two counties, and Onondaga, Orange, Rockland, and Westchester counties. Then, up to 10 grants of $100,000 each will go out to nonprofits in the remaining areas of the state. If there are still grants left available after that, officials will return to the first group and provide money to lower-scoring groups in the higher population counties.
When marijuana was legalized in New York with the Marijuana Regulation and Taxation Act of 2021, the law called for 40% of tax proceeds to go to community reinvestment, which was broadly defined. But New York’s legal market has had a slow rollout, and this year is the first year with significant sales statewide. As a result, this first sum of $5 million is not specifically pulled from legal recreational cannabis sales tax revenue, and is instead coming from broader state tax revenue set aside for discretionary spending.
In the state budget this year, lawmakers set aside $5 million of that money to “jump-start” the fund, with the expectation that the program will run on cannabis tax revenue under OCM’s jurisdiction next year and on. State cannabis officials said they’re hopeful that this reinvestment will spur more people to buy cannabis from the legal market.
Since legal marijuana sales started in New York, they’ve been dwarfed by the estimated illegal market, which continues both in retailers and in individual transactions. State lawmakers have passed new laws and expanded law enforcement’s power to shutter shops that sell marijuana illegally, closing thousands over the course of this year in every region of the state. However, estimates still suggest there are more than 10,000 illegal shops operating in New York.
“If anyone needs another reason why buying cannabis from licensed dispensaries is the best option, here you go,” said Tabatha Robinson, director of economic development for OCM. “Every dollar spent in a legal shop contributes to the important work of reinvesting in communities harmed by prohibition.”
Nonprofits interested in applying for an OCM grant can find information on the OCM website, cannabis.ny.gov.