Recreational cannabis on sale at La Conte's Clone Bar & Dispensary in Denver, Colorado.
The Colorado city of Aurora has announced plans to distribute US$1.5 (AU$2.1) million generated by tax on recreational cannabis to groups dedicated to helping the homeless.
Under the new scheme, Colfax Community Network, a not-for-profit that supports local families living in motels, will receive US$200,000 (AU$277,104).
Council members have also designated funding for two other groups that run homeless outreach vans, Comitis Crisis Center and Aurora Mental Health, with each van costing US$30,000 to US$44,000 (AU$42,565 to AU$60,962) apiece.
“We wanted to be able to show citizens that we are having a positive impact on the community and point to specific projects or initiatives to where that money is going to," city councilman Bob Roth told the Washington Post.
The city expects to reap an estimated US$5.4 (AU$7.5) million in revenue from recreational cannabis sales and taxes this year.