Dec. 15: Minnesota opens $10.9 million CanRenew grant round for communities harmed by cannabis prohibition

Minnesota is accepting applications for $10.9 million in CanRenew community restoration grants, a state program meant to reinvest in communities hit hardest by past cannabis enforcement, and the deadline to apply is Dec. 15 at 4:30 p.m. Central time. The state's Office of Cannabis Management (OCM) opened the round on Oct. 22, and KIMT reported on it Oct. 26.

For fiscal year 2027-2028, OCM expects to pick between 15 and 50 organizations for awards ranging from $50,000 to $2 million, according to the agency's announcement and its request for proposals (RFP). The money goes to organizations and community projects, not as direct cash payments to individuals, KIMT reported.

What CanRenew is

CanRenew was created in Minnesota's 2023 adult-use cannabis law. The statute, Minnesota Statutes section 342.70, directs OCM to "establish CanRenew, a program to award grants to eligible organizations for investments in communities where long-term residents are eligible to be social equity applicants."

The law defines a "community investment" as a project or program designed to improve community-wide outcomes or experiences. It says such work may target economic development, improving social determinants of health, violence prevention, youth development or civil legal aid, among other things.

Grants must be awarded through a competitive process run by OCM's Division of Social Equity. Under the statute, the office has to give priority to three kinds of applications: those from organizations with a history of successful community investments, particularly in areas that are now eligible communities; those that support youth civic engagement, leadership and youth-led health education; and those that show community support for the proposed investment. The law also tells OCM to fund investments "in eligible communities throughout the state" and to report to legislative committees every Jan. 15 on the awards and how the money was used.

Who counts as an eligible community

CanRenew eligibility is tied to Minnesota's definition of a social equity applicant in section 342.17. That definition includes people who were convicted of, or found delinquent for, a cannabis possession or sale offense before May 1, 2023, and people whose parent, guardian, child, spouse or dependent had such a conviction. It also covers military veterans, including those who lost honorable status over a cannabis offense, and people who have lived for the last five years in areas with a disproportionately large amount of cannabis enforcement, a poverty rate of 20% or more, or other markers of low income or social vulnerability, among other criteria.

The grants focus on geographic communities where long-term residents meet those criteria, according to the RFP.

"I think that that's a lot of words to say that these grants are intended to repair the harm in communities," Jess Jackson, OCM's director of community and economic development, told KIMT. "And when we talk about harm, we're specifically talking about the long withstanding collateral consequences that communities have faced as a result of cannabis prohibition and criminalization."

Jackson told the station that the effects of a cannabis conviction can reach a whole household. "Maybe one of the parents was incarcerated. That was a loss of income that maybe meant they had to be displaced," Jackson said. "Maybe they didn't achieve the same educational outcomes. Maybe they lost insurance and health benefits."

In OCM's Oct. 22 announcement, Jackson said that through CanRenew, "we have an opportunity to turn the page on that history by reinvesting in the people, organizations and neighborhoods that have borne the greatest burden."

Who can apply, and what the money can't pay for

Eligible applicants include educational institutions, nonprofit organizations, federally recognized Tribes, private businesses, community groups, units of local government and partnerships among them, according to the RFP. Unincorporated community groups and partnerships must apply through an eligible fiscal sponsor, and subawards, meaning passing part of the grant to another organization to carry out project work, are not allowed. Nonprofits must be registered as 501(c)(3) or 501(c)(4) organizations.

The program is not a business grant. The RFP says projects may provide training, guidance or resources to individuals, but grant money "cannot be used to start, operate, or expand a business," and revenue-generating or entrepreneurial activities are not eligible. "Applicants whose primary goal is to secure funding for their own business should not apply," it says. OCM's announcement adds that CanRenew money is not meant to support cannabis business operations.

The RFP caps administrative costs at 10%, requires an initial report plus four quarterly progress reports, and says payments are reimbursement-based unless an advance is approved. Selected applicants must also pass a preaward risk assessment.

How applications will be scored

A review committee will score each application on a 100-point scale, according to the RFP:

• Project design, methods and work plan: up to 25 points
• Organization capacity and relevant experience: up to 25 points
• Diverse outreach, community engagement and community partnerships: up to 25 points
• Performance, evaluation and reporting: up to 10 points
• Budget and matching: up to 15 points

Key dates

The RFP lists these dates, all in 2026 unless noted:

• Questions due: 4:30 p.m. CST, Dec. 8
• Applications due: 4:30 p.m. CST, Dec. 15
• Committee review begins: Jan. 4, 2027
• Preaward risk assessments for selected applicants: Feb. 22, 2027
• Grantees announced and negotiations begin: estimated May 24, 2027
• Grants begin: estimated June 30, 2027, with projects running to about June 30, 2028

OCM plans three virtual information sessions on Microsoft Teams: Thursday, Nov. 5, from 10 to 11 a.m.; Friday, Nov. 20, from 1 to 2 p.m.; and Monday, Dec. 7, from 1 to 2 p.m., according to the RFP. Questions go to grants.ocm@state.mn.us, and OCM says answers will be posted on the CanRenew webpage within 10 business days.

What changed from the last round

The previous round, for fiscal year 2026, also offered $10.9 million, but in two tiers: Tier 1 microgrants of $2,500 to $10,000 and Tier 2 grants of $50,000 to $2 million, with applications due Jan. 12, 2026, according to OCM's FY 2026 RFP. The new round sets a $50,000 minimum, dropping the smaller tier, The Marijuana Herald noted.

When that earlier round opened in November 2025, Jackson said "during the first round of funding, 150 organizations requested over $22 million," as quoted by The Marijuana Herald. In an Oct. 14 newsletter, OCM said it would announce its fiscal 2026 CanRenew recipients, representing about $10.9 million in community investment, "coming soon."

OCM's Oct. 22 announcement highlighted two first-round grantees. The Metropolitan Economic Development Association received $70,000 for a "Roadmap to Business Success" initiative offering financial literacy training and mentorship to BIPOC entrepreneurs in North Minneapolis. The Beltrami Area Service Collaboration received $100,000 for its UPLIFT Project, a peer-led substance use prevention program at Bemidji Middle School. OCM said 85% of participating seventh graders agreed the project helped them think about making healthy choices, and 81% said it helped them feel confident standing up for themselves and others.

CanRenew is one of several state cannabis grant programs. OCM also runs CanGrow for farmers, and the Minnesota Department of Employment and Economic Development runs CanStartUp, CanNavigate and CanTrain, according to OCM.

What to watch

Applications are due Dec. 15. After that, OCM's review committee starts scoring in January, and the agency estimates it will announce grantees in late May 2027. Under the statute, OCM's next annual CanRenew report to the Legislature is due Jan. 15. Organizations thinking about applying can find the RFP, the application questions and the required forms on OCM's CanRenew grant webpage. This article is general information, not legal or grant-writing advice.