Maryland Bill Would Direct Cannabis Tax Revenue to Veterans Trust Fund

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Legislation in the Maryland House that would redirect a portion of the state’s marijuana tax revenue to support the Veterans Trust Fund received its first reading today in the House Ways and Means Committee. House Bill 151, filed by Joe Vogel,would require that 3% of sales and use tax revenue collected from legal marijuana purchases be distributed to the Maryland Veterans Trust Fund, a state fund that provides financial assistance and support services for veterans, members of the Maryland National Guard, and their families. Based on the roughly $157 million in cannabis tax revenue the state garnered in 2025, the proposal would direct nearly $5 million into the fund.

Under current law, cannabis tax revenue is primarily distributed among regulatory agencies, social equity programs, public health initiatives, local governments, and the state’s general fund. The bill would adjust that formula to carve out a dedicated share for veterans-related funding.

Specifically, the legislation amends existing state government and tax statutes to formally add marijuana tax revenue as a funding source for the Veterans Trust Fund. The measure also revises the overall distribution structure so that, after required allocations, 3% of cannabis tax revenue would flow directly to the fund, while 22% would go to the state’s general fund. The remaining revenue would continue to support cannabis regulation, social equity efforts, community reinvestment programs, counties and municipalities, public health initiatives, and cannabis business assistance.

Supporters of the bill argue that dedicating a portion of marijuana tax revenue to veterans aligns with the broader intent of legalization to generate public benefits, particularly for populations that often face economic and health-related challenges. By establishing a statutory link between cannabis sales and veterans services, the legislation would create a stable and ongoing funding stream rather than relying solely on annual appropriations or voluntary contributions.

If enacted, the changes would take effect July 1, 2026. The bill will now move forward in the Ways and Means Committee, where lawmakers are expected to review its fiscal impact and policy implications in the coming weeks.