To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Authorize Staff to Apply for the Fiscal Year (FY) 2026-27 Community Equity Grant (CEG) Through the California Governor’s Office of Business and Economic Development for the Project Trellis Local Equity Program
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize staff to apply for the FY 2026-27 CEG application cycle for $850,000 of state funds for Project Trellis Local Equity grants; and
2. Authorize an allocation of $100,000 in match from the General Fund to be included in the FY 2027-28 budget.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: A Diverse, Equitable & Robust Economy
Strategic Plan Category: 2001 - Promote strong economic resiliency and growth
DISCUSSION:
The County of Humboldt’s Cannabis Local Equity Program, commonly referred to as Project Trellis or Project Trellis Local Equity Program, is a state-funded initiative designed to support local communities and individuals that were negatively impacted by cannabis prohibition. Since its inception in 2019, the program has provided over 469 grants, dispersing approximately $11.3 million to Humboldt County cannabis business operators. Currently the program supports direct payments to applicants for a broad set of uses as well as payments on behalf of the recipient to the Treasurer-Tax Collector for past due Measure S taxes and to the Planning and Building Department for past due fees.
On Oct. 2, 2026, staff from the County Administrative Office's Economic Development Division received notice from GO-Biz announcing the release of the FY 2026-27 Grant Solicitation for the CEG’s Program for Local Jurisdictions. The application period closes on Dec. 1, 2026.
The GO-Biz CEG is the primary funding source for the Project Trellis Local Equity Program and is intended to support individuals who were negatively impacted by the prohibition of cannabis and are seeking to enter into, or remain in, the legal cannabis market. The program is operated in accordance with the Local Equity Program Manual, which details eligibility requirements and funding.
The GO-Biz CEG program funding allows for up to $750,000 without a match requirement. If a jurisdiction wants to apply for funding above that amount, a 1:1 match commitment is required. Since the introduction of the match requirement your Board has provided an annual general fund allocation of $100,000 for administrative and overhead costs that exceed the 10% allowable through the grant award.
This is an unmandated program, and providing match funding is at your Board’s discretion. Your Board could choose to not provide the $100,000 in match funding, which would reduce the award amount and funds available for granting activities, but would also reduce the funding available for the administration of this program. Furthermore, your Board could choose not to authorize staff to apply for the FY 2026-27 Community Equity Grant application cycle, then the program will terminate upon the final expenditure of existing funding. In either case, this would mean a reduction to funding available for Economic Development staffing and overhead which would need to be addressed during the FY 2027-28 budget cycle.
SOURCE OF FUNDING:
General Fund (1100)
Community Equity Grant Award (1120-275422)
FINANCIAL IMPACT:
|
Expenditures (1120-275422) |
FY27-28 Projected* |
|
Grant Expenditure |
$850,000 |
|
Required Local Match |
$100,000 |
|
Total Expenditures |
$950,000 |
*Projected amounts are estimates and are subject to change.
|
Funding Sources (1120-275422) |
FY27-28 Projected* |
|
General Fund Allocation |
$100,000 |
|
State/Federal Funds |
$850,000 |
|
Total Funding Sources |
$950,000 |
*Projected amounts are estimates and are subject to change.
Narrative Explanation of Financial Impact:
If awarded both the grant amount and General Fund allocation will be included in the Economic Development Division’s Project Trellis Budget Unit (1120275-422) for FY 2027-28 in the amount of $950,000. An award of $850,000 in CEG funding would make $765,000 available for eligible Project Trellis recipients.
The requested General Fund allocation is required to apply for the full $850,000 in CEG funds. Should your Board direct staff apply for CEG funds without the General Fund match it would reduce the application to $750,000 and would limit the available funding for eligible Project Trellis recipients to $675,000.
This program is unmandated and without a dedicated funding source. The requested General Fund match in the amount of $100,000 assists with required program administration efforts above and beyond the allowable 10% through the grant award.
STAFFING IMPACT:
This is a unmandated program and while there are no additional staffing allocations at this time, failure to secure this funding will negatively impact the Economic Development Divisions staffing budget which will need to be supplemented from other sources to maintain the current level of staffing.
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to approve an additional round of Community Equity Grant funding for the Project Trellis Local Equity Program and its general fund match. However, this is not recommended as there are still applicants in the queue that would benefit from this funding.
ATTACHMENTS:
N/A
PREVIOUS ACTION/REFERRAL:
Meeting of: May 28, 2019; Jan. 12, 2021; Feb. 1, 2022; March 8, 2022; June 14, 2022; May 16, 2023; Aug. 22, 2023; Oct. 22, 2024; Dec. 10, 2024; Feb. 11, 2025; April 15, 2025; Aug. 26, 2025
File No.: 19-633; 21-1859; 22-94; 22-225; 22-283; 23-190; 23-1089; 24-1469; 24-1597; 25-121; 25-316; 25-919