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County Launches Cannabis Equity Grant Program

Humboldt County announces a $500,000 state-funded equity grant program aimed at helping disadvantaged cannabis applicants navigate the licensing process.

3 min read Eureka

Humboldt County is getting $500,000 in state money to help equity applicants get licensed in cannabis. The Board of Supervisors voted 4-1 Tuesday to accept the grant from the Governor’s Office of Business and Economic Development.

The lone dissent came from Rex Bohn, who called the program “a nice gesture that won’t move the needle.”

He’s not entirely wrong. The money, split across an estimated 40 to 60 applicants, works out to somewhere between $8,300 and $12,500 per person. That doesn’t cover a single compliance consultant’s retainer in most cases. But supporters say the funding isn’t meant to bankroll entire operations. It’s meant to reduce the barrier at the front door.

“The application process alone costs people thousands,” said county cannabis program manager David Ortega. “Filing fees, environmental review, CEQA, a CoA from a licensed lab if you’re already cultivating. This money helps people who can’t float that upfront.”

Who qualifies

The program targets applicants who meet at least two of four criteria: household income below the county median, prior cannabis conviction (or a family member’s conviction), residence in an area disproportionately affected by cannabis enforcement, or documented history of 215 cultivation prior to 2016.

That last one is specific to Humboldt. The county added it after pushback from legacy growers who argued that equity programs elsewhere in the state overlooked the people who built the industry on the hill before legalization.

Applications open April 15 and close May 30. The county plans to award grants on a rolling basis through the summer.

Board discussion

The board spent nearly an hour debating priorities. Chair Michelle Estrada wanted the grants weighted toward applicants furthest along in the DCC licensing pipeline, people who already have a provisional or pending application but can’t afford to complete it.

Supervisor Natalie Arroyo pushed for prioritizing new applicants entirely. “If someone’s already in the pipeline, they’ve found a way,” Arroyo said. “I want to reach the people who looked at the process and walked away.”

They compromised. Sixty percent of funds will go to applicants with pending or provisional licenses. Forty percent to new applicants.

Supervisor Mike Wilson asked Ortega how the county would prevent the money from going to people who “have no real intention of operating” and are just fishing for grant dollars. Ortega said applicants would need to submit a business plan and demonstrate site control, meaning a lease or property ownership.

“We’re not handing out checks at the door,” Ortega said. “There’s a process.”

Context

The grant comes as Humboldt’s licensed cannabis sector continues to shrink. The county had 732 active cultivation licenses at the start of 2025. That number is now 641. Statewide, the DCC reports roughly 5,400 active cultivation licenses, down from over 8,000 at the peak in 2022.

Equity programs have had mixed results across California. Oakland’s program, one of the first in the state, has been praised for intent and criticized for execution. Los Angeles has spent tens of millions with relatively few equity licensees actually operating.

Humboldt’s program is smaller and more targeted. Whether that helps or just means less money to go around depends on who you ask.

The county will host two informational workshops before applications open. One at the Mateel Community Center in Redway on March 22, another at the Adorni Center in Eureka on March 29. Both start at 6 p.m.

Bohn said he’d attend both. “I voted no on the program,” he said. “Doesn’t mean I won’t help people use it.”

Jesse Marsh · Editor-in-Chief · All articles →