Federal diversity, equity, and inclusion (DEI) programs have long been a tool to address systemic inequalities in industries where access and representation have been historically denied. The government’s decision to defund DEI initiatives has sent shockwaves across multiple sectors, but its impact on cannabis social equity is more complicated.
Unlike other industries, cannabis legalization was never backed by federal support — it was fought for and won at the state and local level, often in defiance of federal policy. Social equity programs — designed to repair the disproportionate harm of prohibition — are state-led initiatives, making them independent of federal funding. However, the lack of federal oversight does raise questions about long-term accountability.
At Major Bloom, 93% of our team comes from communities historically disenfranchised by cannabis prohibition. For us, equity isn’t a talking point — it’s a lived reality. Many of us have seen firsthand how the War on Drugs destroyed families, blocked economic opportunities, and pushed Black and Brown entrepreneurs out of industries they helped build. That’s why this discussion is bigger than cannabis—it’s about who gets to control the market and whether equity remains a priority as legalization expands.
The history of DEI and its role in Cannabis
DEI efforts in the U.S. can be traced back to the Civil Rights Movement. President Lyndon B. Johnson’s 1965 Executive Order 11246 was one of the first federal actions mandating affirmative action in hiring. Over the years, DEI programs expanded across industries, aiming to correct systemic exclusion in education, employment, and government contracting.
In the cannabis industry, DEI took shape as social equity programs: initiatives that provide priority licensing, technical support, and funding assistance for individuals from communities most harmed by prohibition.
Massachusetts led the way with the first statewide cannabis equity program, ensuring that those disproportionately arrested for cannabis offenses — predominantly Black and Brown individuals — had a pathway into the legal industry. Since then, states like California, Illinois, and New York have introduced their own versions, each with varying levels of success.
Although federal agencies have supported DEI broadly, cannabis equity has always been state-led. This means that while defunding DEI at the federal level may not directly impact cannabis programs, it does eliminate broader accountability mechanisms that could have reinforced state-level commitments to equity.
The War on Drugs and why equity still matters
To understand why DEI matters in cannabis, we need to recognize who was most harmed by prohibition.
- Black Americans are nearly four times more likely to be arrested for cannabis possession than white Americans, despite similar usage rates.
- Latino communities, particularly in border states, have also been disproportionately targeted.
- These disparities didn’t just result in prison sentences. They also led to diminished access to jobs, housing, and education, creating generational wealth gaps that still persist today.
Legalization alone won’t undo the damage. Despite equity programs, the majority of cannabis businesses remain white-owned. Without continued efforts to create access to ownership, the same communities once criminalized for cannabis will be pushed out of the legal market entirely.
The question isn’t just whether social equity programs exist — it’s who will hold states accountable to ensure they actually work.
Will federal DEI defunding hurt cannabis social equity programs?
The cannabis industry is unlikely to see immediate consequences from the federal government’s move to defund DEI because social equity programs are state-funded. However, there are long-term risks, particularly in oversight and enforcement.
- In higher education, healthcare, and federal contracting, DEI defunding cuts scholarships, research grants, and job programs.
- In cannabis, social equity programs remain intact, but without federal oversight, some states may quietly deprioritize them.
- Large corporate players could lobby for relaxed regulations, making it harder for minority-owned cannabis businesses to compete.
Some states have built-in accountability mechanisms. For example, in Massachusetts, the Cannabis Control Commission (CCC) requires businesses to show progress on equity commitments during license renewal. But in many states, there is little to no enforcement, meaning social equity can be promised on paper but ignored in practice.
Without federal DEI funding or enforcement, equity in cannabis will rely entirely on state-level commitment, which can shift depending on politics, budget priorities, and corporate influence.
What the federal government should be doing
Rather than defunding DEI, the federal government should be expanding its commitment to economic justice through reparations-focused programs that promote full participation in major industries.
For too long, Black and Brown entrepreneurs have been locked out of wealth-building industries. A true federal equity plan would go beyond cannabis and prioritize ownership, leadership, and business development in:
- Agriculture and manufacturing – Land grants, ownership opportunities, and industry-backed entrepreneurship programs.
- Banking and finance – Government-backed financial programs and low-interest loans for minority-owned businesses.
- Transportation and shipping – Federal investment in logistics to increase minority participation in delivery services and freight management.
- Hospitality and food industry – A national franchise ownership pipeline to shift economic power dynamics.
- Mining and resource extraction – Ensuring communities affected by environmental exploitation benefit economically.
- Construction and infrastructure – Federal contracts dedicated to minority-owned development firms.
- Music, arts and entertainment – Protecting artists’ intellectual property and supporting Black-owned media platforms.
- Health and medicine – Funding for Black medical professionals and minority-owned healthcare practices.
- Education and publishing – Investments in Black-owned schools, academic research, and publishing houses.
- Public service and legal professions – Training programs for minority judges, lawyers, and policymakers to reshape legal and governmental institutions.
The federal government has spent decades creating barriers that have kept marginalized communities from owning businesses and controlling industries. A real commitment to equity means breaking those barriers down, not cutting DEI funding.
‘Worth fighting for’
Cannabis has never waited for federal approval to move forward, and DEI defunding won’t stop the equity movement — at least not immediately. But without oversight, state governments and corporations will decide whether social equity remains a priority.
If the goal is true economic repair, then the fight for equity must go beyond cannabis. It must ensure that historically disenfranchised communities can access real economic power through ownership, management, and industry leadership.
For those of us who have been impacted by prohibition, this fight isn’t about government budgets or political agendas: It’s about protecting the future of a legal industry we fought to create.
Federal funding may come and go, but equity in cannabis — and in every major industry — is worth fighting for.
