SEEF 101

What is the SEEF?

The Social Equity Excise Fee (SEEF) is a small fee the State of New Jersey charges on every ounce of recreational cannabis grown in the state.
It’s added upstream at the cultivation level — not at dispensaries.

Think of it as New Jersey’s way of saying:

“As the cannabis industry grows, some of that money should go back to repairing communities harmed by the War on Drugs.”

Who pays the SEEF?

Growers (cultivators) pay it.

Manufacturers and dispensaries do not pay it directly, although the cost may trickle down the supply chain.

Where is the money supposed to go?

By law, SEEF revenue is supposed to support:

Social equity programs

• Grants and loans for small cannabis businesses

• Support for social-equity entrepreneurs

• Workforce training and job programs

• Re-entry services for formerly incarcerated people

Community reinvestment

• Youth programs

• After-school and summer programs

• Mental health services

• Violence prevention

• Community support in areas harmed by past drug laws

Underage prevention and public health

15% of the fund must go to programs that prevent youth use and support public health messaging.

So… where has the money actually gone?

Here’s the real tea:

As of 2025, New Jersey has collected millions in SEEF money… but most of it has NOT been spent.

The fund had about $5.1 million sitting unused as of March 2025.

Why?
Because the Legislature must approve and release the funds — and that step has been slow.

What did the Governor try to do with the funds?

In the FY2026 proposed budget, the Governor planned to shift $206.5 million worth of community programs into the cannabis fund (CREAMM Fund), including:

• Violence intervention programs

• Youth programs

• Social support and mental health services

• Expungement support

• Cannabis equity grants

• Local aid to cities

• Children’s Defense Fund Freedom Schools

• Student Support Services (NJ4S)

But here’s the catch:

🚫 The cannabis fund didn’t have enough money to cover all of that.

So most of these programs were moved back to the regular state budget.

Why does this matter?

Because when the public hears “cannabis tax money supports equity,” they assume the money is flowing.

But it isn’t — at least not yet.

And for social-equity applicants, small operators, and legacy-impacted communities, this means:

• No grants

• No loans

• No reinvestment

• No direct social-equity support

• Delays in programs they were promised

• Funds accumulating with no distribution plan in action

This is why transparency matters.

What’s next?

For SEEF to actually help the people it was designed for:

1. The Legislature must approve specific spending.

2. The State must release the money to communities.

3. Cannabis operators and consumers must keep demanding transparency.