New York Launches Its First Cannabis Cash Grant For Nonprofit Youth Program
The grant program, totaling $5 million, will provide $100,000 to nonprofits serving youths.
Words by FP Team
FP TEAM
New York has launched its first grant program funded by tax revenue from legal cannabis sales, offering $5 million through the “Community Reinvestment Program.” This initiative will allocate $100,000 each to nonprofits that support youth aged 0 to 24 in communities historically impacted by marijuana prohibition. Felicia A.B. Reid, the acting executive director of the state Office of Cannabis Management (OCM), expressed enthusiasm for the program: “The Community Reinvestment Program represents an exciting opportunity. New York is channeling cannabis tax revenue into initiatives that support the upcoming generation; this initial $5 million is just the beginning of what’s to come.”
501(c)(3) nonprofits can apply for these grants, regardless of their cannabis-related activities. Nonprofits located in areas where cannabis sales are not permitted are also eligible. The application process will feature a grading system, prioritizing the highest-scoring proposals. The OCM plans to distribute the grants in tiers, awarding up to 13 grants of $100,000 each to nonprofits in New York's largest counties. This includes all five boroughs of New York City, Long Island's two counties, as well as Onondaga, Orange, Rockland, and Westchester counties. Subsequently, up to 10 additional grants will be made available to nonprofits in other parts of the state.
If funds remain, they will be allocated to lower-scoring applicants in the larger counties. Although New York legalized cannabis through the Marijuana Regulation and Taxation Act in 2021, the rollout of the legal market has progressed slowly. This year marks the first significant sales period statewide, and the initial $5 million is sourced from broader state tax revenue set aside for discretionary spending rather than specifically from legal recreational cannabis tax dollars. Lawmakers earmarked this amount in the state budget to “jump-start” the fund, with plans for it to be sustained by cannabis tax revenue in the future.
As legal cannabis sales have commenced, they have been significantly overshadowed by the ongoing illegal market, which persists through both storefronts and private transactions. In response, state lawmakers have enacted measures to enhance law enforcement powers to close illegal shops, resulting in thousands of closures this year alone. Nonetheless, there are still estimates indicating over 10,000 illegal vendors are operating within New York. “This is another compelling reason to choose licensed dispensaries for cannabis purchases,” remarked Tabatha Robinson, OCM’s director of economic development. “Every dollar spent legally contributes to vital community reinvestment efforts.”
Nonprofits interested in applying for an OCM grant can find further details on the OCM website, cannabis.ny.gov.
cannabis.ny.gov
FP Team covers cannabis, fashion, lifestyle, and design in New York. More about Frasspot
Oct 25, 2024 More in Journal
