Cannabis Tax Revenues To Go Toward Nonprofit Groups That Help Young People

ALBANY, NY – Some New York communities will soon be getting an infusion of financial support thanks to revenues from the state’s cannabis sales, according to a report in the Finger Lakes Daily News.

The money will come from grants provided by the Community Reinvestment Program, funded through taxes collected from legal adult-use cannabis sales  The initial round of the grants was announced last week by the New York State Office of Cannabis Management (OCM).

The OCM said the grants will provide up to $5 million in funding to nonprofit organizations that support young people, ages 0-24 in underserved and under-resourced communities across New York.  These are communities that have been disproportionately affected by prior federal and state drug policies

The grants are aimed at addressing a wide range of community needs in three particular areas:  mental health, workforce development, and housing.  Each individual grant will be for $100,000.

“If anyone needs another reason why buying cannabis from licensed dispensaries is the best option, here you go,” Tabatha Robison, OCM’s director of economic development, said in a statement about the program. “Every dollar spent in a legal shop contributes to the important work of reinvesting in communities harmed by prohibition.”

Under the state’s Marijuana Regulation and Taxation Act, 40% of cannabis tax revenue goes back to the communities areas most disproportionately affected by prior drug policies in the form of grants overseen by the Cannabis Advisory Board (CAB) via the Community Grants Reinvestment Fund.

OCM has established a tiered system for the grants. Up to 13 awards of $100,000 each will be given to nonprofit organizations 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. Up to 10 grants of $100,000 each will go out to nonprofits in the remaining areas of the state.

OCM emphasized the importance of directing cannabis tax revenue back to communities negatively impacted by cannabis criminalization.

“Having previously served youth harmed by the legacy of the War on Drugs and worked with communities that have been historically and systemically underserved, the Community Reinvestment Program is a thrilling opportunity”, said Felicia A.B. Reid, Acting Executive Director for the New York 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.”

In this first 2024 grant cycle, eligible applicants are 501(c)(3) nonprofit organizations that offer services for youth in designated areas of New York State.   Organizations do not need to be affiliated with cannabis-related activities to qualify.

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