Why it matters: The California Governor’s Office of Business and Economic Development is distributing $50 million in grants to health departments and non-profit organizations through the California Community Reinvestment Grants Program. Recipients can utilize the funds to help people find jobs, treat mental health or substance abuse, and provide legal services.
What they are saying: To qualify for the grant program, organizations must fulfill several requirements, including being in good standing for at least six months before grant solicitation and having tax-exempt status from the IRS and California Franchise Tax Board.
The big picture: The grant recipients include 31 organizations that aim to support communities affected by the War on Drugs. The California Department of Cannabis Control is funding the grant program with cannabis excise and cultivation taxes, and in February 2022, it announced $20 million in grant programs to support and expand the state cannabis industry. Additionally, California is funding research initiatives and distributing funds to support equity in the cannabis industry.
What to watch: The California task force has issued a draft of its final report, which recommends that the state issue an apology to Black Americans for discrimination experienced as a result of the War on Drugs and pay compensation for each year of residency in California between 1971 and 2020. The final version of the report is due to be sent to Congress on June 29.
My take: It’s encouraging to see California using cannabis tax revenue to support its communities and encourage scientific research. The grant program is an excellent example of how cannabis tax revenue can be utilized to support socioeconomic equity and provide vital services to those in need. The recommendations from the California task force are a sobering reminder of the impact of the War on Drugs on marginalized communities, and the need for continued efforts to redress its harmful effects.
