New York state has awarded the first round of funding for cannabis retailers with former marijuana convictions who opened a recreational store, the state Office of Cannabis Management announced Wednesday.

The 52 licensed dispensary owners receiving the funds are part of the state’s Conditional Adult Use Retail Dispensary Licenses (CAURD) program, which was created by the state to prioritize upcoming business owners with a cannabis conviction under former drug laws or people who have a family member with a previous conviction.

These grants are aimed to cover startup and operational costs like commercial rent, renovations, security systems, inventory tracking, and retail technology as well as reimbursement for expenses already paid during the startup process — and provide up to $30,000 in reimbursement support per awardee.

“These grants are about more than dollars and cents, they are about investing in the people and communities who are helping to build New York’s cannabis market the right way,” said Felicia A.B. Reid, acting executive director of the state Office of Cannabis Management. “OCM is proud to support the development of cannabusinesses led by formerly justice-involved entrepreneurs. Their work speaks to the incredible promise of business inclusivity and demonstrates what’s possible when equity is more than just a word—it’s a foundation.”

The CAURD initiative faced a lengthy legal challenge before implementation. New York legalized recreational adult-use cannabis through the Marihuana Regulation and Taxation Act in 2021.