Arkansas Governor Proposes Funding Free School Meals with Medical Cannabis Tax Revenue

LOS ANGELES- Arkansas Governor Sarah Huckabee Sanders has announced plans to allocate tax revenue from medical cannabis sales to fund free school meals across the state. In her State of the State address, Governor Sanders stated, “I’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.”

This initiative builds upon previous legislative actions. In 2023, the Arkansas Legislature passed laws redirecting medical cannabis tax revenue from the University of Arkansas for Medical Sciences National Cancer Institute Designation Trust Fund to address food insecurity and health needs. This reallocation has enabled the state to cover the costs of reduced-price school meals, allowing students who previously paid a nominal fee to receive breakfast and lunch at no charge.

As of November 2024, Arkansas reported over $250 million in medical cannabis sales for the year, generating approximately $28.5 million in tax revenue. Since the program’s inception, total tax revenue has reached nearly $150 million. These funds are now being utilized to support various programs aimed at combating food insecurity among students.

The Department of Finance and Administration indicated that, in 2024, $30 million in tax revenue was generated from medical cannabis dispensaries. This funding is instrumental in sustaining free and reduced meal programs already in place and expanding access to free school breakfasts for all students in Arkansas.

Governor Sanders’ proposal reflects a strategic use of medical cannabis tax revenue to address critical social needs, ensuring that students across Arkansas have access to nutritious meals during the school day.