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- Over $6 million in New Jersey cannabis tax money has not been given out because of slow paperwork.
- Red tape is getting in the way of important help for social equity cannabis business owners.
- These delays especially hurt Black and brown communities that have been most affected by past cannabis laws.
- Business owners in legal cannabis can't get started because they don't have the startup money and business help they were promised.
- Other states such as Illinois and California have set up successful equity programs using cannabis money.
Legalizing marijuana was supposed to be a big change. Especially in states like New Jersey, bringing in legal marijuana came with big promises of fairness, chances for people, and making up for past wrongs in the economy. But now, $6 million in cannabis tax money—specifically meant for social equity—is still sitting there. Instead of helping communities change, that money is stuck, held up by paperwork. This article explains what cannabis tax funds are, why they are important, and how New Jersey's delay is affecting the communities that legalization was supposed to help.
What Cannabis Tax Funds Are and Why They Matter
Cannabis tax funds are money from the public that comes from taxing legal marijuana sales. This includes taxes on retail sales, special taxes, and fees for licenses and rules. After legalization, many states, including New Jersey, said they would put a lot of this money back into communities that were hurt most by the War on Drugs.
These funds are supposed to do two main things
- Make things fairer and fix past wrongs: Deal with the harm done for years by banning marijuana, especially in Black and Latino communities that were unfairly targeted by drug police.
- Help the economy and make sure everyone has a fair chance: Give business owners and people looking for jobs who haven't had chances before the money, help, and ways to get ahead in the new cannabis business.
In New Jersey, voters made it clear that legalizing marijuana wasn't just about getting to use cannabis—it was about social justice. Actually, one of the most important parts of the state’s plan for legalization was its promise that 70% of cannabis tax money would be put back into areas that have been hit hardest by criminalization and lack of economic opportunity.
These funds aren't just numbers in a budget. They are like a contract promising to make things right. They are a way to make things even in a business that has been good for some for a long time and bad for others.
New Jersey’s Social Equity Promise (on Paper)
When New Jersey passed the law to allow marijuana for adults in 2021, it created one of the best frameworks for fairness in the country—at least on paper. Social equity was a key part of the Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization (CREAMM) Act.
Here is what New Jersey promised
- Licenses given first to cannabis business owners who are minorities, women, veterans, or people who live in certain hard-hit areas.
- Getting rid of non-violent cannabis convictions to help people get out from under the shadow of a criminal record.
- Putting cannabis tax money back into job training, small business grants, and help for people reentering society after prison.
- Promise to include the community, requiring that local people have a say in how the money is used.
Basically, the law made New Jersey seem like it could be a leader in cannabis fairness. It said that the racial differences related to how cannabis laws were enforced couldn't just be undone by legalization. Real healing needed real investment in communities that had lost the most.
However, what the law said and what has actually happened are not the same yet.
The $6M Delay: What’s Holding Things Up?
Even with big promises and attention from all over the country, New Jersey’s efforts to make cannabis business fair have run into a big problem—$6 million in cannabis tax money is still frozen. According to the New Jersey Cannabis Regulatory Commission (CRC), some internal and organizational problems have slowed down giving out this important money (Cannabis Regulatory Commission, 2024).
Main things causing delays
- No final plans: Without a clear plan for how the money should be used, it can't be legally given out.
- Unclear rules: The CRC is still working out its own rules, so it's not clear who approves funding, under what rules, and what paperwork is needed.
- Not enough staff: With not enough people and resources, the agency can't get the money out quickly.
- No public updates: Unlike some other states, NJ hasn't put out public updates or charts showing how things are going, delays, or when things are expected to happen.
As of 2024, none of the $6 million has gone to the equity programs it was meant for. That's over two years of chances missed.
Paperwork vs. Fairness: Why This Delay Matters
Legalizing cannabis without putting money back in is not real change—it’s just the same old business.
New Jersey's failure to use its cannabis tax money shows a bigger truth: paperwork without a sense of urgency keeps unfairness going. The promises made to communities that have been pushed aside are not just ideas. These were real promises made to voters, families, and business owners who thought that cannabis could finally help make things fair.
Every day this money sits unused is another day families struggle, communities are still not helped, and people who want to start cannabis businesses can't get into the market. Social equity cannabis plans are not charity—they are about fairness. Delays make this harder and could make it seem like empty talk.
Promised Help: Where the Money Should Go
The cannabis tax funds were meant to start fixing up communities by filling in the holes left by unfair drug laws. Here are the main areas where the money was supposed to go, based on what the laws say and what the CRC is planning
- Cannabis business help centers: Startup grants and loans with very low or no interest for social equity applicants, to help them compete with big companies that have a lot of money.
- Job training: Certified job training and job placement programs focused on growing, selling, checking if things are legal, and retail sales of cannabis for people from hard-hit areas.
- Help getting back into society and getting convictions cleared: Legal help that allows people to clear cannabis convictions and get back into the workforce without being held back by stigma.
- Mental health and drug misuse programs: Investments in community health programs, especially those that offer therapy, help with addiction, and counseling for trauma.
By using these investments, cannabis tax money could cause real change—new jobs, fewer barriers, and more local people involved in the legal cannabis market.
The Fairness Gap: Who Is Left Behind
At the center of social equity cannabis change is knowing that laws are not applied fairly—and never have been.
According to information from the American Civil Liberties Union, even though rates of use are similar, Black people in New Jersey were over three times more likely than white people to be arrested for having marijuana before it was legalized. This pattern caused lasting harm: criminal records, eviction, job loss, and broken families.
With legalization, the state promised to change things. But these delays make the fairness gap even wider
- Black and Latino business owners miss important chances to get into the market.
- Young adults from hard-hit areas miss out on jobs and training.
- Low-income communities keep waiting for the economic boost they were promised.
Fairness delayed is fairness denied—and right now, fairness is waiting for a piece of paper to be approved.
Trust Issues: The Cannabis Community Is Watching
People have always been unsure about cannabis legalization—especially those who feel left out, targeted, or like they are just being used to make things look good.
As delays add up, so does distrust in the community. Business owners in the community are asking why licenses are being given to big companies while local groups can’t even apply for a $10,000 grant. Local business owners, supporters, and community leaders are warning that without openness and quick action, New Jersey might lose the very people legalization was meant to help.
The message being sent is not "community first," but "companies first." And that's a bad message if the goal is to include everyone.
The Effect on Small Business Owners and Hopefuls
Starting a cannabis business is not cheap. Estimates for starting up small cannabis businesses in New Jersey are from $250,000–$750,000 depending on where it is and what kind of business it is. Getting property, hiring lawyers, getting paperwork in order, and dealing with state licenses—all before making any money—makes it almost impossible for many people from historically pushed-aside communities who want to be business owners.
Without cannabis tax funds
- Equity applicants can't get startup money.
- Community business dreams are not happening while bigger businesses grow.
- Local competition suffers as the market becomes controlled by fewer companies.
Even worse, this creates a wrong idea: that equity applicants were not ready, when really, they just weren't given money.
Equity Isn’t Optional – It’s Key to Legalization
Let’s be clear: equity is not just something nice to add on. It’s central to whether legalization is morally right. Without real steps to fix what was lost, legalization becomes like gentrification—a business model that makes money from cannabis without recognizing its painful past.
Social equity cannabis efforts say again that the legal weed business won’t be like the unfairness of when it was banned. And for that promise to be kept, public groups like the CRC must act quickly, not slowly.
Time Running Out: What If Funding Doesn’t Come Soon
The danger is not just the investments missed today—it’s the chances lost tomorrow. As time goes by
- New equity businesses are priced out or bought up.
- Talented people from hard-hit areas go to other businesses.
- People stop caring about cannabis equity efforts, becoming doubtful.
- The path from "War on Drugs to economic power" is broken.
What's left is a warning: that even the best laws can fail if they are not carried out with quick action.
Equity in Action: Learning from Other States Doing It Right
Illinois – Restore, Reinvest, Renew (R3) Program
Illinois sets aside 25% of cannabis tax money for its R3 program, which funds social services for communities hurt by violence, poverty, and prison through a clear public grant system.
- In its first two rounds, over $80 million was given out.
- Community people were asked for their thoughts when planning the program.
- From helping young people grow to stopping violence, R3 connected cannabis money to real social results.
California – Local Grants and City Ideas
Several California cities, including Oakland and Los Angeles, have started special help programs giving real money and business help to equity operators.
- San Francisco set up programs to delay fees for equity applicants.
- Oakland gave grants and business help to support local ownership.
These programs aren’t perfect—but they show that equity funding doesn’t need to be perfect to work well.
What's Next: Pressure, Openness, and Change
To move forward, New Jersey's Cannabis Regulatory Commission must promise a simple plan that includes
- Clear and public schedules for giving out money and starting programs
- Community advice groups to make sure money is used together with people who are affected
- Putting out the rules for giving out money so applicants know what to expect
- Investing in staff ability, including people who focus on equity and grant experts
Also, public checking needs to go beyond just news reporters watching. Supporters and users must push for lawmaking hearings, checks on how things are working, and program reviews by outside groups.
How You Can Help
Whether you're a user, activist, or someone in the business, you can help keep equity in mind
- Choose brands that care about diversity, inclusion, and social impact.
- Go to CRC meetings and speak up publicly.
- Share updates on social media to spread the word about program progress.
- Buy from local operators.
At Purple Rose Supply, we believe that the marijuana business is strongest when everyone is included—and that means fighting for cannabis tax funds to get to the people who deserve them most.
Final Thoughts
Social equity cannabis plans are more than just a nice idea—they are morally right and economically needed. The delay with New Jersey’s $6 million cannabis fund is a small example of the bigger problem for legalization efforts across the country: turning promises in laws into real, quick action.
It's time for New Jersey to act with honesty and speed. Because in the cannabis business, equity isn’t just one thing to do—it’s the whole point.
