Community Reinvestment Grants Program

The California Community Reinvestment Grants Program (CalCRG), administered by the Governor’s Office of Business and Economic Development (GO-Biz), provides funding to Local Health Departments and community-based nonprofit organizations to support communities disproportionately affected by past federal and state drug policies, also known as the War on Drugs. GO-Biz serves as the State of California’s lead entity for job growth and economic development, offering services in business attraction, retention, and expansion, permitting assistance, small business support, and international trade development. The CalCRG program was established under Proposition 64, the Adult Use of Marijuana Act, passed by voters in 2016. The program’s mission is to advance health, wellness, and economic justice for populations harmed by the War on Drugs by funding eligible services such as job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services addressing barriers to reentry, and linkages to medical care. The priority population includes individuals from communities disproportionately impacted by these policies, particularly low-income African American/Black and Latino/Hispanic populations, and proposals from organizations led by those directly impacted, serving formerly incarcerated individuals, or placing individuals in jobs receive preference points. For FY 2025–26, the solicitation opened August 4, 2025, with the online Phase 1 application portal available August 11, 2025. Phase 1 applications are due by September 8, 2025, at 4:59 PM PT. Only applicants passing Phase 1 evaluation will be invited to submit Phase 2 applications, expected to be released December 3, 2025. Grant evaluation and awards will occur between September 2025 and May 2026, and the grant term runs from June 2026 to May 2029. Applications are submitted via the CalCRG online portal and must include organizational, contact, eligibility, and proposal details. Community-based nonprofit organizations must submit documentation including IRS Form 990, California Secretary of State status, Franchise Tax Board status, IRS tax-exempt verification, and California Attorney General Registry of Charities and Fundraisers status. A total of $48 million is available, with 50% reserved for small community-based nonprofits with average annual total revenue of $5 million or less over the past three tax years. Applicants may request between $600,000 and $3,000,000 total for the three-year term. At least 75% of awarded funds must be allocated to direct personnel costs for W-2 employees delivering services, reimbursed at 100% of costs, while training, equipment, and materials are reimbursed at 50%. Subcontracted costs may not exceed 20% of the total award or $200,000, whichever is less, and indirect costs are capped at 17%. The program operates on a reimbursement model, with advance payments available to qualified nonprofits with demonstrated cash flow needs. Eligible applicants include California Local Health Departments and community-based nonprofits that have been in operation at least six months prior to the solicitation release, have tax-exempt status with both the IRS and California Franchise Tax Board, maintain required registrations, hold necessary licenses, and have a physical California address. Geographic eligibility requires service to communities meeting criteria such as high drug arrest rates, unemployment, poverty, single-parent households, low educational attainment, or designation as an Opportunity Zone. Phase 1 evaluation consists of a technical review for eligibility followed by scoring of the proposal summary, organizational competencies, and demonstration of serving the priority population, for a total of 10 possible points. All applicants scoring 10 points advance to Phase 2; additional applicants may advance until 150% of available funding is represented. Scoring criteria emphasize clarity, alignment with program goals, demonstrated capacity, and service to impacted populations. For questions, applicants may contact the CalCRG team at CalCRG@gobiz.ca.gov or (916) 322-2683. Additional information, including the application guide and portal, is available at www.business.ca.gov/CalCRG.

Refer to scoring criteria to maximize clarity and alignment with program priorities