Six specific hypotheses have been developed to account for why Caucasians have higher rates of drug use compared to African-Americans. This article utilizes data from a South Florida-based community study of 893 young adults (1998-2002) to test these hypotheses. Specifically, Caucasians (1) initiate drug use at younger ages than African-Americans and (2) have more discretionary financial resources to fund their use than African-Americans. The findings presented here indicate that the racial gap in drug use may be attenuated by these aspects of use in early adulthood; implications and directions for future research are discussed.