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New Report: Cannabis Tax Fails To Support Research Efforts

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April 28, 2025Health

Leafie Club believes cannabis should be backed by solid science, not guesswork. Yet a startling new report reveals that while cannabis tax revenues soar, critical research efforts are being left behind. As cannabis users who rely on accurate information for our health and choices, we must ask: where is all the tax money really going? Let’s dive deeper into what the latest findings mean for our community and why this matters more than ever.

We Need Answers: Why Is Cannabis Research Still Left Behind?

At Leafie Club, we believe knowledge is the real power that transforms lives. Yet today, we face a surprising truth. Even though cannabis tax collections soar, scientific research remains in the shadows. Across the United States, states collect billions from hemp tax revenues every year. Yet, according to a new study published in the Journal of Cannabis Research, less than half of the states that legalized cannabis have systems to fund research.

Only 17 out of 38 states with medical or recreational legalization have even written research into their laws. Even fewer, just 12 states, have allocated actual funding for studies. States like California, Michigan and Florida lead the way. They wisely use a portion of cannabis tax funds to fuel university research projects. However, many others lag behind, missing a golden opportunity.

At Leafie Club, we feel the gap. Cannabis users, both recreational and therapeutic, deserve information backed by real science, not politics or corporate lobbying. When our government prioritizes revenue but sidelines research, it betrays the promise made to users like us. If we are going to build a better future with hemp and cannabis, we must demand better. The tax boom must also support the science that safeguards our health and well-being.

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Where Does The Cannabis Tax Go? Follow The Money Trail

It’s time we at Leafie Club ask the hard questions: Where is the cannabis tax money really going?

Billions of dollars flow into state budgets every year thanks to cannabis sales. Yet, very little of it finds its way to research. In fact, the new report shows a disturbing pattern:

  1. Only a few states allocate cannabis tax revenue directly to research.
  2. Most states do not have mandatory clauses tying tax to science.
  3. States like Alabama and Pennsylvania talk about research but fail to fund it.

Meanwhile, California stands out. It dedicates a percentage of its cannabis tax to studying health impacts, setting an example the rest should follow.

Still, most states prefer to spend cannabis funds elsewhere. Education programs, law enforcement support and infrastructure projects often take priority. While these are important, ignoring scientific research leaves cannabis users exposed to myths and misinformation.

At Leafie Club, we believe cannabis research is not a luxury — it’s a necessity. Without it, policymakers risk creating regulations based on fear, not facts. We need to stay informed, ask tough questions and advocate for the smart use of tax revenues.

The Federal-State Divide: Why National Research Isn’t Enough

While states collect the cannabis tax, most cannabis research remains federally funded. This creates a strange and frustrating situation for users like us.

The National Institute on Drug Abuse (NIDA) funded more than $200 million in cannabis research in 2021 alone. But here’s the twist: much of this research focuses only on risks and harms, not on benefits or therapeutic potentials.

This creates several problems:

  1. Studies heavily slant toward negatives, ignoring positive medical applications.
  2. There is little independent research into cannabis’s public health benefits.
  3. State-legal cannabis markets continue to grow without state-backed scientific oversight.

This growing divide puts cannabis users at risk. We rely on outdated or incomplete data while the market around us evolves. Additionally, we believe that every cannabis user deserves access to current, unbiased information about what we consume.

Therefore, states must step up. They should not just depend on federal agencies. State-specific, real-world studies can fill critical gaps and help create fair, science-based policies. The cannabis tax offers the perfect solution — but only if states are willing to act.

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How Can States Better Use Cannabis Tax? Smart Solutions To A Growing Problem

At Leafie Club, we don’t just highlight problems. We believe in finding solutions. The new report provides clear recommendations that can make a real difference. Here’s how states can better use tax funds:

  1. Dedicate a fixed percentage of cannabis tax revenue to research.
  2. Launch competitive grants for universities and independent researchers.
  3. Strengthen partnerships between public health agencies and academic institutions.
  4. Support both harm research and potential health benefits studies.

By implementing these ideas, states can correct the imbalance. Cannabis research would no longer be an afterthought but a priority.

We must push for a system where the cannabis tax directly supports studies on the safety, effectiveness and public health impacts of cannabis use. Only then can our community — recreational users, medical patients and curious learners — benefit from trustworthy knowledge.

At Leafie Club, we stand ready to support this movement. Together, we can transform the conversation around hemp and cannabis, leading to better health outcomes, smarter laws and a future grounded in real science.

Final Thoughts About Cannabis Tax

The goal of the cannabis tax was to make things better. However, without adequate research funding, we will miss out on important information. Let’s demand that every dollar collected from cannabis users helps fund the science that protects them. Our mission at Leafie Club will always be to educate, inspire, and transform and we invite you to join us on this journey toward a smarter, healthier future.

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