First Cannabis Community Reinvestment Grants Issues by New York State’s Office of Cannabis Management

The New York State Office of Cannabis Management (OCM) and the Cannabis Advisory Board have announced the first awards from the Community Grants Reinvestment Fund (CGRF), distributing $5 million to 50 youth-focused non-profit organizations. This initial funding stream is derived from tax revenue generated by New York’s adult-use cannabis market and fulfills the state’s commitment to restorative justice as outlined in the Marijuana Regulation and Taxation Act (MRTA).

The grants are targeted toward communities that have been disproportionately impacted by past cannabis enforcement policies. Recipient organizations across areas throughout the state, such as Long Island, New York City, Schenectady, Buffalo, Rochester, and Troy, will utilize the funds to offer vital services within their communities. These services include workforce development programs, mental health support, and efforts to promote housing stability, addressing years of systemic injustice in underserved neighborhoods.

OCM officials noted that this $5 million represents the starting point of a much larger, long-term effort. As the legal cannabis market continues to expand, the tax revenue pool is projected to grow, enabling the CGRF to amplify its annual impact and become a durable engine for sustained community reinvestment in New York. The program is fundamentally about shifting resources to those best positioned to lead change on the ground.

Statewide Recall Issued By New York OCM for Cannabis License Violations

The New York State OCM has filed multiple charges against cannabis processor and distributor Omnium Health (Omnium Canna) and issued a statewide retail recall of all associated products. The state organization alleges that Omnium engaged in “reverse licensing,” a blatant violation of state regulations designed to ensure fairness and transparency in the legal cannabis market.

The investigation, launched in February 2025, revealed that Omnium allegedly enabled unlicensed businesses to use its processing and distribution license for a fee, allowing them to produce, package, and sell cannabis to state retailers. The charges filed include aiding and abetting unlicensed processing and material misrepresentation. The OCM is seeking severe penalties, including the revocation of Omnium’s licenses, debarment from future applications, civil penalties based on unauthorized revenue, and the destruction of all unlawfully produced cannabis products. The enforcement action underscores the OCM’s commitment to protecting the integrity of the regulated market.

Long Island Cannabis Ordinances Bring New York State CCB Assertion of State Law

The New York State Cannabis Control Board (CCB) recently asserted state law supremacy over municipal attempts to restrict the regulated cannabis market, announcing advisory opinions that deemed Long Island ordinances in Southampton and Riverhead “unreasonably impracticable.” This action ensures that local laws cannot impose barriers that may cause issues for state-licensed businesses from opening, reinforcing the state’s vision of cannabis as a legal and collective economic driver. Acting Executive Director of the Office of Cannabis Management, Felicia A.B. Reid expressed that local efforts to undermine this vision would not stand, stating that “local laws do not override the laws of New York State.”

The CCB’s meeting also highlighted the regulated market’s rapid growth and commitment to Social and Economic Equity (SEE). The state’s cannabis sales have already reached $1.26 billion year-to-date in 2025. To date, the Board has issued a total of 1,950 adult-use licenses, with 56.4% going to SEE applicants. Additionally, the CAURD Grant Program continues to support licensees, awarding grants up to $30,000 to 159 recipients for essential expenses like payroll, compliance, and store build-outs.

References

1. Colli, M. New York OCM awards $5 million in First Cannabis Community Reinvestment Grants https://www.cannabissciencetech.com/view/new-york-ocm-awards-5-million-in-first-cannabis-community-reinvestment-grants (accessed Oct 24, 2025).
2. McEvoy, E. New York OCM issues statewide recall, charges Omnium Health for cannabis license violations https://www.cannabissciencetech.com/view/new-york-ocm-issues-statewide-recall-charges-omnium-health-for-cannabis-license-violations (accessed Oct 24, 2025).
3. Colli, M. New York CCB announces opinions on Long Island Cannabis Ordinances https://www.cannabissciencetech.com/view/new-york-ccb-announces-opinions-on-long-island-cannabis-ordinances (accessed Oct 24, 2025).