In Evanston, Illinois, cannabis sales are more than just a source of recreational enjoyment—they are funding a historic reparations program for Black residents. Established by the City Council in 2019, the reparations fund acknowledges the lasting impact of segregation and housing discrimination. Eligible recipients include Black residents who lived in Evanston from 1919 to 1969 or their direct descendants.
So far, the city has distributed $5.5 million from this fund, primarily sourced from a 3% tax on cannabis sales. Evanston currently has two dispensaries—Zen Leaf and OKAY Cannabis. Initial projections estimated that the tax would generate $10 million, but the lack of a third dispensary has led to lower than expected revenue. In response, the City Council approved the use of real estate transfer tax funds to supplement the reparations.
Alderman Bobby Burns, a member of the Reparations Committee, emphasized the convenience of funding reparations through a new tax that does not draw from existing programs. He noted, “There’s some poetic justice in using cannabis tax revenue to help repair the very community harmed by its prohibition.”
Historically, cannabis laws have disproportionately affected Black and Brown communities. According to the American Civil Liberties Union, prior to legalization in 2019, Black residents in Illinois were 7.5 times more likely to be arrested for cannabis possession. This disparity reflects a broader issue of mass incarceration linked to cannabis offenses.
The legalization of cannabis in Illinois, signed by Governor J.B. Pritzker, aimed to address these inequities by investing in affected communities. However, challenges remain in acquiring cannabis business licenses, as Illinois is classified as a “limited license state.” Burns holds a social equity cannabis license, which is available to individuals from areas identified as disproportionately impacted by poverty or previous marijuana laws. Yet, data from 2022 indicates that 88% of Illinois dispensaries are majority-owned by white individuals.
OKAY Cannabis made history as the first social equity dispensary in the nation. However, it faced financial challenges and was acquired by Nature’s Grace and Wellness to ensure its survival. Roger Dillman, vice president of retail for Nature’s Grace and Wellness, highlighted the difficulties of operating a compliant dispensary amidst competition from unregulated sellers.
The reparations conversation in Evanston often focuses on a narrow time frame, but Professor Lina Britto from Northwestern University argues for a broader historical perspective. She connects cannabis to a legacy that began with colonialism and slavery, tracing its origins back to Asia and its introduction to the Americas through the Triangular Trade. Britto advocated for an inclusive reparations dialogue that recognizes the long-standing injustices faced by Black communities.
Corey Winchester, a history teacher at Evanston Township High School, noted the demographic changes in Evanston’s 5th Ward, which was once 95% Black in 1940 but has now decreased to 36%. He raised questions about how the city can cultivate opportunities for more Black residents to return.
The cannabis tax structure varies across Illinois, with other cities like Chicago allocating their revenue for different budgetary needs, unlike Evanston, which directs all cannabis tax revenue toward reparations. As the program evolves, Burns insists that the community must take the lead in defining what reparations entail, emphasizing the importance of local input in shaping these initiatives.
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