Massachusetts bill allocates $150M to support cannabis social equity initiatives

On June 17, 2025, the Massachusetts Joint Committee on Cannabis Policy convened to discuss a significant bill aimed at enhancing equity within the state's cannabis industry. The proposed legislation seeks to increase the allocation of licensing and taxation revenues to the Cannabis Social Equity Trust Fund, thereby directly supporting economic empowerment and community investment initiatives.

The bill's sponsor emphasized the historical context of cannabis prohibition, noting that the war on drugs, which began in the 1970s, disproportionately affected black and brown communities. This enforcement led to mass incarceration and ongoing cycles of poverty and trauma. The legislator expressed a commitment to addressing these injustices, highlighting the need for reparative measures as Massachusetts continues to navigate the legalization of cannabis.

Last year, the Massachusetts Regulation Fund (MRF) generated nearly $300 million from cannabis-related taxes, fees, and fines. The new legislation proposes that 50% of these funds be directed toward various programs aimed at uplifting communities most impacted by past cannabis policies. Key allocations include an increase in funding for the Cannabis Social Equity Trust Fund, which would receive 18% for loans and grants to social equity cannabis businesses, and 12% for technical assistance to disadvantaged businesses.

Additionally, the bill allocates 10% to the Executive Office of Economic Development for community empowerment grants, and 5% each for matching grants and the Cannabis Control Commission. The sponsor noted that small cannabis businesses are currently facing challenges, with a reported 70% drop in bridal sales over the past four years, underscoring the urgency of this legislative effort.

As the committee deliberates on this bill, its potential to reshape the cannabis landscape in Massachusetts and promote equity within the industry remains a focal point. The discussions reflect a broader commitment to rectify historical wrongs and ensure that the benefits of cannabis legalization extend to all communities, particularly those that have been historically marginalized.