California is about to put more muscle behind its fight against illegal cannabis. Yesterday, Governor Gavin Newsom announced that the state will award $227 million in Proposition 64 grant funding to help local governments root out illegal cannabis operations and shield communities from public health and environmental harms. The latest round is designed to bolster enforcement, expand youth prevention programs, and pay for cleanup work that regulators say also protects licensed cannabis businesses from being undercut.
The awards come through the Proposition 64 Public Health & Safety Grant Program and, with this fourth cohort, push statewide Prop 64 funding past $350 million, according to the governor’s office. The grants are aimed at strengthening local capacity to investigate illicit cultivation, reduce youth access, and address environmental damage, according to the Governor of California.
Where the money will go
The grants are administered by the Board of State and Community Corrections, which earlier this year released a Cohort 4 request for proposals that initially made $125 million available and prioritized applications focused on illicit cannabis enforcement. Officials say the board then leveraged anticipated fiscal year 2026-27 funding and other resources so it could fully fund every eligible applicant in this round, per the Board of State and Community Corrections.
State officials pointed to Humboldt County and San Francisco as examples of how Prop 64 dollars are playing out on the ground. Humboldt used its funding to expand an Education, Analysis and Enforcement project that exceeded eradication goals, removing more than 267,000 unpermitted cannabis plants, identifying 188 environmental violations and seizing illegal firearms. San Francisco, meanwhile, has used earlier awards to hire enforcement staff and build a mobile data tracking system to sharpen response and youth outreach, according to the Governor of California.
Results so far
Across California, prior to Proposition 64, grantees have collectively eradicated nearly one million illegal cannabis plants and seized 295 illegal firearms. State leaders say those numbers reflect pressure on illicit networks that undercut the regulated market. Grantees have also used the awards for youth prevention work, compliance inspections and environmental remediation in multiple counties, per the Board of State and Community Corrections.
A key shift in who can apply traces back to the 2025 budget agreement and its cannabis trailer language, which authorized cannabis tax funds to support enforcement and broadened local eligibility so more cities and small towns could tap the program. Under the updated criteria, jurisdictions that permit retail storefront sales, and jurisdictions with 10,000 residents or fewer that allow delivery, are now eligible for Prop 64 grants, as reflected in the Budget Act summary and trailer bill materials.
Counties and cities that meet the criteria are expected to receive award notices and launch projects in the coming weeks, with local officials signaling plans to use the money for detective work, data systems, youth programs and watershed repair. Community groups and industry stakeholders have previously raised concerns in budget hearings about how cannabis tax dollars get split among enforcement, youth services and environmental efforts. State officials say this round is intended to balance those priorities while protecting consumers and keeping legal cannabis businesses from getting squeezed by the underground market.
