Community Reinvestment Grants Program

The California Community Reinvestment Grants program is administered by the Governor Office of Business and Economic Development in the State of California and serves as a key funding mechanism to advance economic development, workforce opportunities, and health outcomes in communities disproportionately impacted by historical drug enforcement policies. The program was established under the Adult Use of Marijuana Act, approved by California voters, and is funded through cannabis excise and cultivation tax revenues. The administering agency operates as the state central hub for economic growth initiatives and leverages this program to address systemic inequities tied to the War on Drugs. The primary purpose of the program is to fund local health departments and qualified community based nonprofit organizations to deliver direct services that improve economic mobility, health, and reentry outcomes for affected populations. Funded activities include job placement services, mental health treatment, substance use disorder treatment, system navigation services, legal assistance to address barriers to reentry, and linkages to medical care. The program emphasizes trauma informed care, data driven approaches, and community led solutions, with a strong preference for organizations led by individuals directly impacted by the War on Drugs or those serving formerly incarcerated populations. Funding is substantial, with approximately forty eight million dollars available for the current cycle. Awards range from a minimum of six hundred thousand dollars to a maximum of three million dollars per applicant, covering a three year grant period. At least seventy five percent of awarded funds must be allocated to direct personnel costs for service delivery staff, while other expenses such as training, materials, and subcontracting are reimbursed at partial rates. The program operates primarily on a reimbursement basis, requiring grantees to have sufficient cash flow to initiate services prior to reimbursement unless advance payments are approved. Indirect costs are capped and subcontracting is limited, ensuring that the majority of funding directly supports program implementation. Eligibility is restricted to California based local health departments and community based nonprofit organizations that meet strict compliance criteria. Nonprofits must hold federal and state tax exempt status, maintain active registration with state agencies, and demonstrate operational readiness including required licenses and a physical location open to the public. Services must be delivered in geographically eligible areas defined by high drug arrest rates, socioeconomic indicators, or designated opportunity zones. Additionally, applicants must demonstrate how their target populations have been disproportionately impacted by drug policies and align proposed services accordingly. The application process is divided into two phases. Phase one requires submission through an online portal and includes organizational information, proposal summaries, and required documentation such as tax filings and registration verifications. Only applicants who successfully pass eligibility and scoring thresholds in phase one are invited to submit a more detailed phase two application. The evaluation process includes technical review, scoring based on proposal clarity, organizational capacity, and demonstrated impact on target populations, followed by final award determination. The timeline for the current funding cycle begins with the release of the solicitation in late July, followed by the opening of the application portal in early August. Phase one applications must be submitted by late August, after which selected applicants will be invited to phase two in early December. Awards are expected to be determined between August and the following May, with the grant performance period running for three years. The program is recurring annually, subject to available tax revenues, and continues to serve as a major statewide investment in community reinvestment and equity initiatives. Applicants may contact the program team via email or phone for technical assistance throughout the process. The program also provides guidance documents, required forms, and an application portal to support submission.

Align proposal clearly with program priorities; demonstrate direct impact on communities affected by drug policies; ensure compliance documentation is complete and accurate