New York continues to use funds from legal cannabis sales to support communities hardest hit by prohibition. Through the Community Reinvestment Program, the state will award $5 million in grants to nonprofits that support youth ages 0-24.
The program is funded by taxes on adult-use cannabis sales and aims to address mental health, career development and housing issues in communities that have been impacted by the war on drugs.
Cannabis regulation and taxation act
In 2021, New York State passed the Marijuana Regulation and Taxation Act, which legalized cannabis for adults over the age of 21. This law not only allowed the cannabis market to grow, but also created mechanisms to reinvest some of the profits from cannabis sales in communities that were hurt by previous strict drug laws.
Since the law went into effect, New York State has been rapidly expanding its legal cannabis market, with the first licensed stores opening in late 2022 and more than 200 legal dispensaries operating across the state.
How do tax dollars support communities?
One of the key tenets of New York’s cannabis legalization policy is to support communities most affected by the war on drugs. Under current law, 40% of cannabis tax revenue goes to the Community Grants Reinvestment Fund, managed by the Cannabis Advisory Board (CAB).
Through this fund, New York City will allocate $5 million this year in grants to nonprofits that provide programs that support youth. Each organization can apply for a $100,000 grant to be used for programs in one of three key areas: mental health, career development, and housing support.
Who can apply for grants?
Grants are available to nonprofit organizations that provide programs that support youth ages 0-24 in communities most impacted by past prohibition policies. Specifically, grants are intended to support initiatives that:
Mental Health: Programs that provide youth with access to psychological support, help in coping with trauma and issues resulting from living in communities affected by high levels of drug-related crime.
Career development: Training, workshops and programmes that help young people gain the skills they need to work and develop their careers.
Housing: Programs that assist youth in accessing housing, provide support to those who are homeless or at risk of homelessness, and support the development of stable living conditions.
New York Allocates $5 Million in Cannabis Tax Revenue to Support Youth
