In a recent initiative, California is reinvesting marijuana tax revenue to uplift communities. The latest announcement from the California Community Reinvestment Grants (CalCRG) Program has revealed an amount of over $45 million in grants awarded for Fiscal Year 2023-24. This reinvestment is not just a financial boost; it marks a step toward rectifying the adverse impacts of the War on Drugs.
What Is The CalCRG Program
The CalCRG program, conceived under Proposition 64 (the Adult Use of Marijuana Act), aims to channel marijuana tax proceeds toward revitalizing communities disproportionately affected by the War on Drugs.
By focusing on job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry, and linkages to medical care, the program provides comprehensive support to some of the state’s most underserved populations.
The Governor’s Office of Business and Economic Development (GO-Biz) awards these grants, ensuring that at least 50 percent of the funding each fiscal year goes to qualified community-based nonprofit organizations. This commitment not only fosters community development but also ensures that the benefits of legal marijuana extend beyond consumers to those who need it most like those effected by the War on Drugs.
Fiscal Year 2023-24: A Record-Breaking Round of Grants from Marijuana Tax Revenue
The recent announcement from GO-Biz shows the program’s growth. Specifically, for the Fiscal Year 2023-24, over $45 million has been allocated to various nonprofits and local health departments.
Moreover, this is the sixth round of cannabis-funded grants under the CalCRG program, further demonstrating the state’s ongoing attempt to support communities through cannabis tax revenue.
Furthermore, these grants support organizations dedicated to a wide range of services, including job placement, legal assistance, mental health, and substance use disorder treatments, the awards range from $600,000 to $3 million, providing substantial financial support to these programs.
You can see the full list of Grant Recipients from Fiscal Year 2023-24 here.
How to Apply for Future Grants
For organizations looking to benefit from this program, the next round of grant applications will open in August 2024. To be eligible, nonprofits must meet the following criteria via the press release:
- Have been duly organized, in existence, and in good standing for at least six months prior to the date the Grant Solicitation is issued by GO-Biz.
- Have tax-exempt status with both the Internal Revenue Service and the California Franchise Tax Board.
- Be registered with the California Secretary of State’s Office, with an “Active” status.
- Have a “Registry Status” of “Current” or “Exempt” with the California Attorney General’s Registry of Charitable Trusts.
- Have any other state or local licenses or certifications necessary to provide the proposed services (e.g., facility licensing by the Department of Health Care Services, etc.), if applicable.
- Have a physical address in California.
Grants can cover 100 percent of personnel costs for providing services, and reimburse 50 percent of training, equipment, and other direct costs. Indirect costs may not exceed 17 percent of the total award.
California’s reinvestment of marijuana tax revenue into community programs through the CalCRG program shows how cannabis legalization can drive positive social change. By funding services like job placement, mental health treatment, and legal assistance, the state is addressing the long-term impacts of the War on Drugs and creating new opportunities for those most affected.
Revenue from legal cannabis sales is not only helping to normalize the industry but also making a tangible difference in communities across California. As the grant program expands and allocates more funds, the potential for positive impact will only grow.
