In her recent State of the State address, Arkansas Governor Sarah Huckabee Sanders (R) unveiled a new proposal to use tax revenue generated from medical cannabis sales to fund free meal programs for students across the state. Sanders announced that the funds would help provide both breakfast and lunch for students, making these programs financially sustainable for years to come.
“We’ve already announced that Arkansas will participate in summer EBT this year. And today, I’m announcing my plan to use medical marijuana money to make both this program and our free lunch and breakfast programs financially sustainable for years to come,” Sanders said in her address on January 14, 2025.
This initiative would not only benefit students but also aims to reduce food insecurity across the state. According to data from the Arkansas Department of Finance and Administration (DFA), medical cannabis sales in the state totaled $250 million through November 2024, with tax revenues from these sales amounting to $28.5 million in 2024 alone.
Sanders also suggested that these funds could be used to help support the summer Electronic Benefit Transfer (EBT) program and to address what she described as Arkansas’ “most regressive” tax—the state’s grocery tax. By utilizing cannabis revenue for these essential programs, she aims to provide financial relief for residents while tackling food insecurity.
Currently, there are over 109,000 active medical cannabis patients in Arkansas, and the state’s medical cannabis law, approved by voters in November 2016, has helped generate revenue for public education and food security programs. The state imposes a 6.5% sales tax on medical cannabis sales, with proceeds currently allocated for public school funding and efforts to combat food insecurity.
The proposal to channel cannabis tax revenues into school meal programs is expected to have a significant impact on addressing hunger and ensuring that children across Arkansas have access to nutritious meals throughout the year. By making these meal programs sustainable, Sanders hopes to offer long-term solutions to the ongoing issues of food insecurity in the state.
Governor Sanders’ initiative has received attention as a potential model for other states looking to leverage cannabis revenue for social good. As the discussion continues, Arkansas residents and lawmakers alike will be watching closely to see if this proposal will move forward, ultimately changing the way state governments can use cannabis-generated funds for public welfare.
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