Missouri Transfers Nearly $11 Million from Cannabis Revenue to Support Veterans and Low-Income Missourians
Missouri officials have transferred nearly $11 million in revenue from adult-use marijuana sales, directing the funds toward veterans healthcare, legal assistance for low-income residents, and drug treatment and recovery services. The announcement came on Thursday from the state’s Department of Health and Senior Services (DHSS), highlighting the allocation of resources generated from the voter-approved legalization amendment of 2022.
Revenue Allocation Breakdown
The total sum of $10,918,344 was divided equally among three key agencies: the Missouri Veterans Commission (MVC), the Missouri State Public Defender, and DHSS. Each agency received $3,639,448 to support their respective missions. MVC is tasked with using its portion exclusively for healthcare and other services benefitting military veterans and their families. Meanwhile, the State Public Defender will allocate the funds to provide legal assistance to low-income Missourians.
DHSS Initiatives and Grant Programs
DHSS plans to use its share to fuel a grant program designed to enhance access to evidence-based, low-barrier drug addiction treatments. This initiative prioritizes medically proven methods for treatment and overdose prevention and aims to reintegrate recipients into their local communities. The proceeds will also support education on overdose prevention, job placement, housing, and counseling for individuals with substance use disorders.
Impact of Cannabis Revenue Since Legalization
This transfer follows a significant announcement in May, where state regulators revealed that Missouri had allocated over $19 million in cannabis revenue toward veterans, legal services, and drug treatment since the legalization took effect in 2022.
“It is so rewarding to see the impact of this voter-approved program on organizations that provide vital services to Missourians,” said Amy Moore, director of the Division of Cannabis Regulation at DHSS.
State Revenue Generation from Cannabis Sales
Earlier in January, Moore informed lawmakers that taxes and fees from recreational cannabis had generated $58 million in state revenue. This total first covers operational costs and court expungements for past marijuana offenses, with the remaining funds going to veterans, substance use treatment, and public defenders.
Previous Transfers and Allocations
An earlier transfer of $17 million was announced last November, with a substantial portion directed to the Veterans Commission. Paul Kirchhoff, MVC’s executive director, highlighted the importance of these funds in supporting the existing infrastructure of the state’s seven Veterans Homes.
Missouri’s Medical Cannabis Program
Missouri’s journey with medical marijuana began in 2018, with dispensary sales commencing in 2020. Under state law, medical marijuana products sold at licensed dispensaries are taxed at a rate of 4 percent. Any revenue exceeding the cost of administering the program is disbursed to the Veterans Commission. Purchases of adult-use cannabis are subject to a 6 percent state tax.
The transfer of cannabis revenue underscores the tangible benefits of legalization, providing crucial support to veterans, low-income individuals, and those battling substance use disorders in Missouri. The ongoing allocation of these funds promises to enhance the quality of life and services available to many residents across the state.
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