From July 2025 to April 2026, MO collected $87 million in combined medical and adult-use marijuana taxes (Missouri State Treasurer 2026, Figure 1). This amount was added to the $89 million balance remaining at the end of Fiscal Year 2025 (FY25), which is carried forward to subsequent years (Article XIV). This fund is primarily used for ongoing operational expenses of the Division of Cannabis Regulation (DCR) and reimbursements for marijuana offense expungement through the Office of State Courts Administrator (OSCA). DCR and OSCA receive their budget and reimbursements first from both medical-use tax and adult-use tax revenue. What remains of medical-use tax revenue goes directly to veterans’ services, while the remaining adult-use tax revenue is distributed equally among veterans’ services, public defenders, and SUD treatment grants. See the Science Note Economics of Adult-Use Marijuana for more information.
For Fiscal Year 2026 (FY26), the MO General Assembly approved a maximum of $152 million spending from combined medical and adult-use cannabis tax revenues (Missouri Senate 2025). This included $30 million for DCR and $2 million for OSCA. The legislature separately approved the remaining $120 million for the three service funds (veterans’ services, public defenders, SUD treatment grants).
By April 2026, $90 million was transferred from the combined medical and adult-use tax funds. This included $14 million to DCR and $1 million to OSCA (Missouri State Treasurer 2026, Figure 1). The remaining $75 million was transferred to the three service funds: $35 million to veterans’ services (accounting for medical and adult-use revenue) and $20 million each to public defenders and SUD treatment grants from adult-use revenue (Missouri Senate 2025, Article XIV). Transfers to public defender and SUD treatment grants match itemized spending authority. However, about $19.6 million of the funds transferred for veterans' services have no itemized spending authority and cannot be spent by state agencies (Article IV, HB10 2025, HB14 2025). About $62 million FY26 approved funds have not yet been transferred as of April 2026: $16 million to DCR, $1 million to OSCA, $45 million to the three service funds.
Figure 1. Fiscal Year 2026 (FY26) Marijuana Tax Revenue with Approved and Actual Transfers. Available revenue totaled $176 million in current tax collections and carryover from previous fiscal years (FY). The legislature approved a maximum of $152 million FY26 spending. Fund transfers through April 2026 were $90 million, leaving $62 million in approved but not transferred funds for the remainder of FY26. About $19.6 million of funds transferred for veterans’ services have no itemized spending authority.
References
HB 8, 103rd General Assembly, 1st Regular Session (MO 2025). https://archive.house.mo.gov/Bill.aspx?bill=HB8&year=2025&code=R
HB 10, 103rd General Assembly, 1st Regular Session (MO 2025). https://house.mo.gov/Bill.aspx?bill=HB10&year=2025&code=R
HB 12, 103rd General Assembly, 1st Regular Session (MO 2025). https://house.mo.gov/Bill.aspx?bill=HB12&year=2025&code=R
HB 14, 103rd General Assembly, 1st Regular Session (MO 2025). https://archive.house.mo.gov/Bill.aspx?bill=HB14&year=2025&code=R
Missouri Constitution, Article IV (1972) Treasury Withdrawals, How Made, How Certified – Appropriation, Period Of. https://revisor.mo.gov/main/OneSection.aspx?section=IV++++28&bid=31844&constit=y
Missouri Constitution, Article XIV (2022) Marijuana Use and Regulation. https://revisor.mo.gov/main/ViewChapter.aspx?chapter=XIV&constit=y
Missouri Senate (2025) Annual Fiscal Report (Red Book). https://www.senate.mo.gov/25info/2025redbook.pdf
Missouri State Treasurer (2026) Monthly Fund Activity Reports. https://treasurer.mo.gov/content/about-the-office/1monthlyfunds
