Last verified: May 2026
The Politics
SB 59 / Act 122 of 2025 is the most politically interesting Arkansas cannabis story of the past two years. A Republican governor, the daughter of a Southern Baptist preacher, who opposed Issue 4 (2022), opposed Issue 3 (2024), and signed Act 629 (the hemp ban) — signed and publicly defended a statute that routes medical-cannabis tax revenue to feed hungry Arkansas public-school children.
Lead sponsor Sen. Jonathan Dismang (R-Searcy), the chief Senate budget writer, framed the policy in stark terms in floor debate: "25 percent of our kids wake up food insecure every single day." Arkansas leads the nation in food insecurity by some measures, with 64% of public-school students statewide eligible for free or reduced-price meals.
Gov. Sanders embraced the funding model in her 2025 State of the State address: "We will also use those funds to make school breakfast in Arkansas completely free for any student that chooses to participate." The political symbolism — a Republican governor formerly in the Trump White House defending a tax on Schedule VI controlled substances because it feeds hungry kids — is the central paradox of Arkansas cannabis politics in 2026.
The Funding Flow
| Period | Tax-Revenue Destination |
|---|---|
| 2017–2024 (pre-SB 59) | Most medical-cannabis tax revenue (~$90M cumulative) flowed to the UAMS NCI Designation Trust Fund — supporting the Winthrop P. Rockefeller Cancer Institute’s pursuit of NCI designation. |
| Feb 20, 2025 — SB 59 / Act 122 signed | Sponsor: Sen. Jonathan Dismang (R-Searcy). Routes revenue (after ~$3–5M in annual program-administration costs) into a new Food Insecurity Fund. |
| 2025–26 school year | Funding priorities: (1) Summer EBT, (2) free-and-reduced-price meal copayments, (3) universal free school breakfast — every public-school student, irrespective of federal eligibility. |
| 2025 cannabis-tax revenue | $32.3 million — projected to fully cover the estimated $14.7M annual cost of universal school breakfast, with ~$13M+ surplus directed to the other Food Insecurity Fund priorities. |
Source: Act 122 of 2025 / SB 59. Lead sponsor Sen. Jonathan Dismang noted that "25 percent of our kids wake up food insecure every single day" and that 64% of Arkansas students statewide are eligible for free or reduced-price meals. Gov. Sanders embraced the funding model in her 2025 State of the State address.
What Changed at UAMS
From 2017 through 2024, the bulk of Arkansas medical-cannabis tax revenue — roughly $90 million cumulatively — flowed to the UAMS NCI Designation Trust Fund. UAMS’s Winthrop P. Rockefeller Cancer Institute had been pursuing NCI (National Cancer Institute) Designation, a federal stamp of research excellence held by ~70 cancer centers nationally. The Designation involves a multi-year application process and substantial sustained-funding commitments.
SB 59 sunset that funding stream prospectively. Existing UAMS commitments funded through 2024 remained intact; new revenue from 2025 forward flows to the Food Insecurity Fund. Some Arkansas legislators and health-policy advocates objected that diverting a stable cancer-research funding stream to school-breakfast funding (which has multiple alternative federal funding sources) created a tradeoff with downstream healthcare consequences. Governor Sanders, in her State of the State address, argued that NCI designation could be pursued through alternative state funding channels.
The 2025 Numbers
Per DFA spokesman Scott Hardin’s 2025 reporting:
- Cannabis-tax revenue 2025: $32.3 million.
- Estimated annual cost of universal school breakfast: $14.7 million.
- Surplus directed to Food Insecurity Fund secondary priorities: ~$13–15 million annually.
- 2025 cannabis-tax revenue dispensary sales: $291.1 million (the program’s all-time annual record).
The math is comfortable: cannabis-tax revenue covers universal school breakfast roughly 2.2× over, with the surplus available to expand Summer EBT, free-and-reduced-price meal copayments, and other food-insecurity priorities the legislature may direct.
The Constitutional-Risk Wrinkle
One unspoken implication of SB 59 is that, after the December 2025 Edgmon reversal (see Edgmon page), the General Assembly may now amend Amendment 98 by 2/3 vote. Per January 2026 Arkansas Advocate reporting, multiple legislators — including Senate President Bart Hester (R-Cave Springs) — have signaled they may use the Edgmon ruling to "review" Amendment 98 in 2027, including potentially raising medical-cannabis taxes.
David Couch, the original Amendment 98 drafting attorney, has publicly warned that higher Arkansas taxes could push patients across the Missouri border for recreational purchase — eroding the very tax base SB 59 now relies on for school breakfast. The political feedback loop is unsubtle: SB 59 created a constituency (every public-school parent statewide) that is now invested in keeping the medical-cannabis program healthy and the tax revenue flowing.
Comparative Context
SB 59’s funding structure is a genuine policy innovation. Most state medical-cannabis programs direct tax revenue to:
- General fund (most common).
- Substance-abuse prevention and treatment programs.
- Healthcare-related programs (Mississippi, Maryland).
- Cannabis-research institutions (Arkansas pre-SB-59, several states).
- Social-equity programs (Illinois, New York).
- Education (Colorado has K–12 capital funding from rec; few medical programs do).
Routing the tax stream specifically to a universal child-nutrition program is, as far as we can tell, a national first.
For Patient Advocates
SB 59 has changed the political calculus for cannabis policy in Arkansas in ways advocates are still adjusting to. The school-breakfast funding gives even cannabis-skeptical Republican legislators a constituency reason to keep the program running. Conversely, it creates structural incentive to raise cannabis taxes (to fund more school breakfast or expand the Food Insecurity Fund) rather than to lower them or expand patient access. Patient advocates pushing for tax reduction or expansion of qualifying conditions face this new political headwind.
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Related on this site: Arkansas Edible THC Cap, Arkansas Home Grow Rules, Arkansas Best Edibles.