Uncategorized

Cannabis Research Woefully Undersupported by State Sales Taxes, Says New Report

Cannabis-related scientific research is woefully undersupported in the US, with less than half of the states which have legalized cannabis in some form offering provisions for research.

Cannabis-related scientific research is woefully undersupported in the US, with less than half of the states which have legalized cannabis in some form offering provisions for research.

‘State funding for cannabis research: an analysis of funding mechanisms and levels’, a new study published in the Journal of Cannabis Research this month, found that just 17 of the 38 states with some form of legalized medical or recreational cannabis industry include clauses for scientific research, and of those just 12 have allocated funds.

Led by researchers from the University of California and the Cannabis Policy Lab, the study highlights the expanding chasm between cannabis legalization and rigorous scientific research able to inform these regulations.

States like California, Michigan, and Florida were identified as leading examples, having established university partnerships and dedicated research grants.

Leading the charge, California earmarks a portion of cannabis tax revenue specifically for studies on the health effects of cannabis use. Meanwhile, although states like Alabama and Pennsylvania include research-related language in their laws, have yet to distribute any funds.

It goes on to explore the dynamic between federal and state-sponsored research, with the vast majority of funding still coming via the federal government, mostly from the National Institute on Drug Abuse (NIDA).In 2021 alone, NIDA accounted for over $200 million of the NIH’s total $369 million investment in cannabis research.

Despite hundreds of millions of dollars in grants, critics argue that this research is often biased towards exploring the risks and harms of cannabis use, with less emphasis on the potential therapeutic applications of the drug, or the potential for legalization to benefit public health.

As such, the report’s authors argue that state governments are now raking in billions in tax revenue from cannabis sales and are in the position to launch multidisciplinary research.

The authors recommend that states allocate a fixed percentage of cannabis tax income to academic research, create competitive grant programs, and build closer ties between public health authorities and research institutions. Without these efforts, the study warns cannabis policy in the US risks being shaped more by politics and industry lobbying than by evidence and public interest.

TopicsCannabis researchJournal of Cannabis Researchsales taxUniversity of California

Ben Stevens

Ben is the editor of Business of Cannabis. Since 2021, he has researched, written, and published the vast majority of the outlet’s content, delivering agenda-setting journalism on regulation, business strategy, and policy across Europe.

More from Ben

Spotted an error, or have a tip? Contact the newsroom.

Up next · Uncategorized

What’s On the Agenda for Business of Cannabis: New York 2025?

Ben Stevens · 14 October 2025

More