New York Allocates $5 Million in Cannabis Tax Revenue to Support Youth

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.

Why is it worth buying cannabis from legal sources?

As Tabatha Robinson, director of economic development for the Office of Cannabis Management (OCM), points out, “Every dollar spent at a legal cannabis dispensary supports our work to reinvest in communities impacted by prohibition.” This shows that choosing a legal source of cannabis not only provides a safe and controlled product, but also supports community programs designed to repair the damage done by harsh drug laws of the past.

By purchasing cannabis from licensed dispensaries, consumers directly contribute to funding programs that help young people cope with mental health issues, homelessness and lack of job prospects.

New York cannabis market financial results

The cannabis market in New York is booming. According to the OCM report, in 2023, the cannabis market in the state generated revenues of $653.9 million. Additionally, in the first half of 2024, cannabis sales exceeded $260 million.

In addition, with the new policy, New York has taken significant steps toward repairing the damage done by its previous harsh drug laws. To date, more than 200,000 drug convictions have been expunged, with another 100,000 pending expungements.

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(Featured image by Valentin Wechsler via Unsplash)

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