Modesto Receives $18.4 Million for Cannabis Industry Equity

News Summary

Modesto is set to receive $18.4 million from the Governor’s Office of Business and Economic Development (GO-Biz) to support equity in the cannabis industry. This funding aims to remove barriers for local applicants and promote equitable economic opportunities within the sector. Although there has been a recent tie vote in the city council regarding additional funding for the Cannabis Equity Program, which targets support toward marginalized communities, the overall push for inclusion in California’s cannabis market continues. Discussions about the program’s future are slated for October 2025.

Modesto to See $18.4 Million Boost for Cannabis Industry Equity

Exciting news for Modesto and California as a whole! The Governor’s Office of Business and Economic Development (GO-Biz) is dishing out a whopping $18.4 million in grant funding specifically aimed to help break down barriers in the cannabis industry. This initiative is all about ensuring that local applicants and licensees can gain easier access to the thriving market.

Funding to Empower Local Communities

The funding will be distributed among 18 local jurisdictions, allowing them to promote equitable economic opportunities for those looking to enter or expand their presence in the cannabis sector. This is particularly important as the initiative sets its sights on reducing the illicit cannabis market. By integrating more individuals into the legal industry, California aims to create a healthier, safer space for all.

Utilization of Grant Funds

So, how will this money be spent? The allocated funds can be used for a variety of purposes, including:

• Low or no-interest loans, which are a real lifesaver for budding entrepreneurs.
• Waiving fees that often deter local applicants from pursuing their licensing dreams.
• Technical assistance like consulting, training, and expert guidance to help navigate the often complicated licensing regulatory requirements.

This approach not only supports new businesses but also aims to promote lasting economic growth in the community.

A Look Back at the Program’s Impact

To date, the program has successfully distributed a staggering $123.4 million to 34 local jurisdictions throughout the Golden State. This injection of funds has helped businesses thrive while also addressing the fallout from past cannabis criminalization.

Modesto’s Cannabis Equity Program

Cannabis Equity Program. Recently, a tie vote in the city council brought a halt to efforts to secure additional funding aimed at helping individuals with past incarcerations enter the legal cannabis scene. The program was designed to particularly help Black and Hispanic communities that have been disproportionately affected by past marijuana laws.

Previously, Modesto was awarded $350,000 to kickstart its Cannabis Equity Program, distributing $75,000 to each of the five selected recipients in April 2024. However, some of that money was diverted to cover city permit application fees and administrative costs, which left many feeling a little short-changed.

Community Reactions

With the recent council vote landing in a 3-3 tie, the future of Modesto’s Cannabis Equity Program is uncertain, with discussions now slated for a next vote in October 2025. Supporters of the funding are voicing concerns about the missed opportunities, arguing that the program provides fundamental benefits to the local community. On the flip side, those against the funding argue it’s merely startup cash.

With citizens expressing frustration over perceived mismanagement and insufficient funding, the broader community discussion has turned to addressing the criticisms surrounding the council’s stance. Some residents, even those who benefitted from the grants, are vocal in their feelings that the council’s opposition is racially biased.

California’s Tax Revenue and Community Reinvestment

It’s important these conversations happen, especially given that cannabis tax revenue in California has topped an incredible $5.7 billion since legalization. The state has been reinvesting part of that revenue back into communities affected by the repercussions of cannabis prohibition. Programs like the California Community Reinvestment Grants (CalCRG) have helped various organizations support communities struggling with poverty and the previous impacts of drug laws.

So, while the future of local cannabis programs may be hanging in the balance, the overall push for equitable opportunities in the industry is gathering steam. With new funding and initiatives coming into play, Modesto and California can look forward to a more inclusive and fair cannabis landscape. Stay tuned for updates as we watch these initiatives unfold!

Deeper Dive: News & Info About This Topic

• Fox 5 San Diego: California Awards $18.4 Million for Cannabis Industry Access
• Modesto Bee: Modesto to See $18.4 Million Boost for Cannabis Industry Equity
• Green Market Report: SEC Sues California Cannabis Investor Over $38 Million Scheme
• Wikipedia: Cannabis in California
• Google Search: California cannabis programs