California Community Reinvestment Grants Program

The California Community Reinvestment Grants (CalCRG) Program, administered by the Governor’s Office of Business and Economic Development (GO-Biz), provides funding to Local Health Departments and qualified community-based nonprofit organizations in California. Established under the Adult Use of Marijuana Act (Proposition 64), the program seeks to address the health, economic, and social impacts experienced by communities disproportionately affected by the War on Drugs. These impacts have included mass incarceration, restricted access to social services, diminished educational attainment, housing barriers, and systemic inequities. The program's mission is to advance health, wellness, and economic justice for these populations, with guiding principles focused on responsiveness, evidence-based approaches, trauma-informed care, and accountability. For Fiscal Year 2025–26, CalCRG will award a total of $48 million, with half reserved for small community-based nonprofits averaging $5 million or less in annual revenue over the last three years. The remaining funds are available to other community-based nonprofits and Local Health Departments. Applicants may request between $600,000 and $3 million for a three-year term (June 2026 – May 2029). At least 75 percent of awarded funds must be allocated to direct personnel costs for W-2 employees delivering proposed services. The program reimburses these personnel costs at 100 percent, while other eligible direct costs, including training, equipment, and materials, are reimbursed at 50 percent. Subcontracting costs are capped at the lesser of 20 percent of the total award or $200,000, and indirect costs may not exceed 17 percent. Eligible applicants must be either one of California’s 61 Local Health Departments or a community-based nonprofit meeting specific organizational, tax-exempt, registration, and operational criteria, including having a physical California address. Current grantees must have an existing award in place for at least 12 months and have expended at least 50 percent of it. Eligible services must target communities disproportionately impacted by past drug policies and fall into one or more categories: Job Placement, Mental Health Treatment, Substance Use Disorder Treatment, System Navigation Services, Legal Services to Address Barriers to Reentry, or Linkages to Medical Care. Geographic eligibility includes certain counties with above-average drug arrest rates, specific census tracts with high unemployment or poverty, low educational attainment, high one-parent or nonfamily households, or designation as an Opportunity Zone. The application process is divided into two phases. Phase 1 opens August 11, 2025, with a submission deadline of September 8, 2025, at 4:59 p.m. PT. It requires applicant information, contact details, proposal summary, and submission of required documentation such as tax filings and organizational status verifications. Only those meeting Phase 1 eligibility and scoring criteria will be invited to submit a Phase 2 application, released December 3, 2025. GO-Biz will evaluate applications from September 2025 through May 2026, with awards announced before the June 2026 grant term start. Applications will be scored in Phase 1 on a 10-point scale, with points allocated for Proposal Summary (3), Competencies and Experience (3), and Community Impacts of the War on Drugs (4). Strong alignment with program priorities—including organizations led by individuals directly impacted by the War on Drugs, those serving formerly incarcerated individuals, and those focusing on job placement—will be prioritized. The review process also considers financial and legal history, prior CalCRG performance, and administrative capacity. The CalCRG program primarily operates on a reimbursement basis, though advance payments may be available to qualified nonprofits with cashflow challenges. Grantees must submit quarterly progress reports and participate in site visits or virtual meetings. For more information or application assistance, applicants can contact the CalCRG team at CalCRG@gobiz.ca.gov or call (916) 322-2683. The full grant solicitation is available at www.business.ca.gov/CalCRG.

Align proposal with program priorities (organizations led by individuals impacted by the War on Drugs, serving formerly incarcerated individuals, and focusing on job placement). Provide detailed, specific answers to all questions; clarity and strong alignment improve scoring