Gray and Black Market Marijuana Enforcement Grant

The Gray and Black Market Marijuana Enforcement Grant Program (GBMJ), administered by the Colorado Department of Local Affairs' Division of Local Government, was established to support local jurisdictions in the investigation and prosecution of unlicensed marijuana operations. These grants were annually awarded to Colorado county and municipal governments, with funds directed to law enforcement agencies, tribal governments, and district attorneys to address illicit marijuana cultivation and distribution within their jurisdictions. This funding initiative targeted operations that either lacked appropriate state licensing or diverted marijuana outside Colorado’s borders, with a particular focus on rural regions, large-scale illegal operations, and organized crime networks. Designed to serve as a financial resource for enforcement-related activities, the GBMJ grants offered a vital infusion of funds where local budgets often fell short. Eligible applicants included Colorado local governments acting on behalf of their law enforcement agencies or district attorneys. The process was streamlined through an online application portal, and grant allocations were calculated based on a population formula, allowing equitable distribution of funding across both rural and urban jurisdictions. This formula-based approach ensured that smaller communities received a proportional share of resources to combat illicit marijuana activity. The program operated on a yearly funding cycle, with deadlines and eligibility parameters publicly posted through the Division of Local Government’s website and other official channels. Applicants were not required to submit letters of intent or pre-proposals, and the application process centered around completing the online portal submission accurately and thoroughly. Once awarded, funds were typically used for costs associated with criminal investigations, legal proceedings, and other law enforcement activities targeting gray and black market marijuana operations. No explicit mention was made of a matching requirement, suggesting that full funding was provided without the need for cost share by grantees. Despite its impact and targeted focus, the GBMJ program was repealed by the Colorado Legislature in 2025 due to budgetary limitations. Governor Jared Polis signed the repeal into law on April 24, 2025. Although the program has ceased issuing new grants, the Division of Local Government will continue to honor existing grant agreements through their natural expiration dates. Contracts expiring on May 31, 2025, must be closed out by June 20, 2025, while those expiring on May 31, 2026, must be finalized by June 22, 2026. All unspent funds must be returned by the corresponding deadlines. The state expressed its appreciation for the local efforts undertaken to mitigate the impacts of illicit marijuana markets. The end of the GBMJ program marks the conclusion of a focused enforcement funding effort at the state level, although the need for such work remains, particularly in rural and underserved jurisdictions. Any future enforcement efforts will likely need to be supported through alternative funding mechanisms, whether through local budgets or federal assistance. For any final questions or reporting needs related to existing GBMJ grants, stakeholders are directed to contact Grant Program Manager Ella Bowman at 303-864-7896 or via email at [email protected]. Additional assistance is available through the general help desk at [email protected] or 303-864-7720. The Division of Local Government continues to provide other funding programs and updates through its website and monthly newsletter.