New York's cannabis law promised that money from legal sales would flow back to the neighborhoods that bore the brunt of marijuana arrests. In 2026, the state put far more behind that promise: the main community grant round grew from $5 million to $15 million, 423 nonprofits applied, and a second, separate $15 million program is being built for smaller grassroots groups. Here is where the money comes from, who can get it, and what has happened since applications closed.
Where the money comes from
The Marihuana Regulation and Taxation Act sends 40% of adult-use cannabis tax revenue to the Community Grants Reinvestment Fund, according to OCM's program overview. The Cannabis Advisory Board, a state panel separate from the licensing board, sets grant priorities, and the Office of Cannabis Management (OCM) runs the application process.
That makes the fund's long-term size a function of legal sales. In July, OCM cut its 2026 retail sales forecast from $2.6 billion to $2 billion after switching from self-reported figures to seed-to-sale tracking data, while noting that monthly units sold had grown 39% since January, according to September board minutes.
From $5 million to $15 million: the 2026 grant round
The first round offered $5 million in $100,000 awards. OCM began paying out those grants in October 2025. Spectrum News reported that the round funded 50 organizations in 24 counties, 38 of them in 13 priority counties with high poverty and high past cannabis arrest rates, including a youth leadership program at the YWCA in Jamestown (Spectrum News).
OCM opened round two on March 18, 2026 with at least $5 million and up to $15 million, depending on the state budget. Changes from round one included:
- A mapping tool that identifies the areas most affected by past enforcement, so proposals can target them.
- Two applicant tiers, so small and mid-sized groups do not compete directly with large nonprofits.
- A shorter application with clearer guidance.
The FY 2026-27 budget settled the round at $15 million, OCM said in a June 1 release. Awards range from $50,000 to $200,000 for 501(c)(3) nonprofits serving young people ages 0 to 24. Priority areas are youth services, workforce development, housing, mental health, harm reduction and substance use disorder services. Groups do not need any connection to cannabis, but they must be prequalified in the state's Statewide Financial System by the deadline.
Applications closed May 21 with 423 submissions. Simple math shows the competition: at the $200,000 maximum, $15 million covers 75 grants; even if every award were the $50,000 minimum, it would cover 300. Either way, a large share of applicants will not be funded this cycle.
A second $15 million aimed at smaller groups
The other $15 million is a different program. On June 23, the Cannabis Advisory Board approved an Intermediary Pilot Program, OCM announced. Instead of funding every nonprofit directly, the state will select established regional organizations to offer technical help, handle grant administration and reach smaller neighborhood groups that often cannot manage the state grant process.
Joseph Belluck, the advisory board's chair, said the goal is for reinvestment dollars to "reach the grassroots organizations closest to the people and neighborhoods we intend to serve." OCM said $35 million has now been committed across the program.
Update: October 2026
As of October 9, OCM had not publicly named round-two grant recipients. In June, the agency said it was reviewing the 423 applications and expected the Cannabis Advisory Board to announce awards later this year. The call for intermediary organizations under the separate $15 million pilot was expected to open in fall 2026.
What to watch next:
- Round-two awards: expected by the end of 2026, through the Cannabis Advisory Board.
- Intermediary pilot application: expected this fall. Groups interested in that role, or in receiving money through an intermediary, should watch OCM's reinvestment page and newsletter.
- Future rounds: OCM is urging nonprofits to get prequalified in the Statewide Financial System now, because organizations that are not prequalified by an application deadline are ineligible.
Who benefits, and how to follow the money
For applicants, the size of the pool means a strong proposal tied to an identified high-impact area matters more than ever. For everyone else, the grants are a measurable test of New York's equity promise: how many dollars actually reach youth programs, job training and housing help in the neighborhoods where arrests were concentrated.
This fund is one side of New York's equity commitment; the licensing side is covered in our report on the board's Gotham Buds sole-control ruling. See also how New York's equity program is beating its targets and, since many grants target youth mental health, what the research says about Gen Z, cannabis and mental health.
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