Santa Monica Launches Controversial Pot Shop Equity Program

Local doctor criticizes city's plan to subsidize cannabis businesses for minorities, ex-convicts, and low-income residents.

Jan. 27, 2026 at 8:47pm

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Santa Monica is launching a new 'Cannabis Equity Program' that will provide startup capital, licensing fee assistance, and rent subsidies to help minorities, ex-convicts, and low-income individuals open cannabis dispensaries in the city. However, a local doctor has strongly criticized the program, arguing it prioritizes 'reparations for past arrests over fixing real community needs' and risks turning the city into a 'haze of poor decisions and preventable tragedies'.

Why it matters

The program is part of a broader trend of cities and states implementing 'social equity' initiatives in the cannabis industry to try to address the disproportionate impact of the drug war on marginalized communities. But critics argue the programs can end up subsidizing drug sales and fail to address underlying community needs.

The details

Santa Monica's program will offer 'micro-grants' of $5,000 to $25,000 to cover licensing fees, professional services, and first-year operating expenses for eligible applicants. Applicants must meet two out of three 'equity criteria': a past cannabis-related conviction or arrest, a household income less than 60% of the area median, or having lived in LA between 1980-2016 and being 'impacted by past criminal justice policies'. However, a local dispensary operator warned the city council that the program may not provide enough business guidance for new operators.

  • Santa Monica City Council approved the Cannabis Equity Program in September 2025.
  • The city is now accepting applications for the program.

The players

Dr. Houman David Hemmati

A Santa Monica resident who is critical of the city's new cannabis equity program, arguing it prioritizes 'reparations for past arrests over fixing real community needs'.

Harvest Dispensary

An operator of a cannabis dispensary in Santa Monica who warned the city council that the equity program may not provide enough business guidance for new operators.

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What they’re saying

“I'm appalled that our city, already drowning in debt from a staggering $350-500 million molestation settlement and years of fiscal mismanagement, is now throwing tens of thousands in grants and rent subsidies at low-income individuals with prior cannabis convictions to start marijuana businesses —essentially using public money to subsidize drug sales in a desperate bid to generate revenue.”

— Dr. Houman David Hemmati, Santa Monica Resident (The Post)

“The big tragedy that will happen for sure with the program is that just because if you look at the criteria for social equity, your low-income, you're a victim of crime, that doesn't give you business acumen.”

— Harvest Dispensary Operator (Santa Monica City Council Meeting)

What’s next

The city of Santa Monica is now accepting applications for its Cannabis Equity Program.

The takeaway

Santa Monica's new cannabis equity program, aimed at providing opportunities for marginalized groups, has drawn criticism from some residents who argue it prioritizes 'reparations' over addressing the city's more pressing needs like homelessness and fiscal challenges. The program's long-term impacts remain to be seen, with concerns raised about whether it will truly empower new cannabis business owners or simply subsidize drug sales.