Massachusetts Cannabis Social Equity Fund Remains Unfunded a Year After Creation

LOS ANGELES– Almost a year since its inception, the Massachusetts fund designed to promote social equity in the state’s cannabis industry has yet to receive funding, as reported by the Boston Business Journal, citing minutes from a recent meeting of Massachusetts’ Cannabis Social Equity Advisory Board.

Enacted into law in August 2022, the Social Equity Trust Fund was established with the intention of providing grants and loans to cannabis entrepreneurs, with a focus on individuals who suffered from the effects of prohibition. The funding was expected to come from 15% of the state’s cannabis taxes and fees.

Despite these intentions, the Business Journal revealed that no funds have been transferred into the Social Equity Trust Fund as of now. The issue appears to be tied to the challenge of transferring state cannabis revenue from the existing “Marijuana Regulation Fund.”

“The 15% allocated for the social equity fund cannot be transferred from the Marijuana Regulation Fund until all funds are transferred to the Consolidated Net Surplus account,” the news outlet reported.

However, state financial officials are reportedly working on an interim solution to enable the transfer of funds sometime this year. If successful, this could potentially make an amount between $2 million and $4 million available for the social equity fund.

Meanwhile, a consortium of Massachusetts-based cannabis businesses is advocating for state regulators to prioritize existing businesses over newcomers when distributing funds from the social equity fund, as noted by the Business Journal.

The delays in funding the Social Equity Trust Fund have raised concerns among those seeking to promote a more inclusive and diverse cannabis industry in Massachusetts. As the issue is addressed, stakeholders are hopeful that progress will be made in providing much-needed support to cannabis entrepreneurs adversely affected by previous cannabis-related policies.