420 with CNW — Arkansas Governor Says Medical Cannabis Taxes Will Help Feed Children

Gov. Sarah Huckabee Sanders of Arkansas recently highlighted the advantages of medical cannabis tax revenue in her last week’s State of the State address, announcing a significant plan.

The state approved medical cannabis through a voter-supported amendment in 2016, but it wasn’t made available to qualifying patients until May 2019. Since then, the program has seen significant growth, with nearly 109,000 active medical cannabis ID cardholders recorded at the end of 2024.

In Arkansas, medical cannabis purchases are subject to a 4 percent privilege tax and a 6.5 percent state sales tax. The revenue collected through the sales tax contributes to important public services, such as addressing food insecurity and supporting public schools. In 2024 alone, these taxes brought in $28.5 million, increasing the medical cannabis program’s total revenue to approximately $150 million since its inception.

During her address, Sanders highlighted how the funding will be utilized. She stated:

“This year, Arkansas will join the Summer Electronic Benefit Transfer (EBT) program. Today, I’m sharing plans to allocate medical cannabis funds to ensure financial stability for the Summer EBT program and to sustain our free breakfast and lunch initiatives in the long term. Additionally, these funds will allow us to offer free school breakfasts throughout the state of Arkansas.”

Gov. Sanders’s proposal is particularly noteworthy given her history of opposing broader marijuana reforms, including her stance against a measure that sought to expand the state’s cannabis program. Despite her prior resistance to recreational cannabis legalization, the governor appears committed to preserving and enhancing the existing framework. The governor even signed legislation in 2023 allowing medical cannabis patients to obtain licenses for carrying firearms.

The National School Lunch Program, a federally supported initiative, provides assistance to almost 100,000 public and not-for-profit private schools, as well as residential childcare facilities across the United States. The program offers free meals to children from households earning less than 130% of the federal poverty level. Families with incomes between 130% and 185% of the federal poverty level can access reduced-cost meals, while those above this range pay the full price but still receive some subsidies.

Despite these efforts, many children lose access to these meals during summer breaks. The Summer EBT program, introduced in 2023 by Congress, addresses this issue by offering food assistance to low-income households during the summer months when school-provided meals are unavailable.

Marijuana enterprises like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) will be pleased that different communities in different jurisdictions are reaping the benefits of legalizing marijuana and allowing licensed companies to impact not just patients but other sections of the population as well.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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