Despite a veto that could have further delayed the allocation of $38 million in medical marijuana funds collected over the past four years, State Treasurer Larry Pack has announced that he will release the funds in accordance with the original mandate.
Last week, Governor Patrick Morrisey vetoed a bill that aimed to release medical marijuana funds for initiatives supporting homelessness and expediting child abuse and neglect cases in the court system. He expressed that the bill would restrict future spending capabilities.
Governor’s Concerns
In his veto letter, Morrisey emphasized the need for West Virginia to plan for future financial stability, stating, “It can’t totally pre-commit future revenue streams like this if it’s going to have reserves to invest more in roads, water, sewer, site selection, rail, and future tax cuts.” He indicated a willingness to negotiate the use of the funds with the Legislature.
His office spokesperson, Lars Dalseide, clarified, “The issue isn’t whether the funds should be used, it’s how they’re used and whether we’re doing it in a responsible, sustainable way.” However, the funds had already been pre-allocated according to existing state code.
Allocation of Funds
Pack’s office affirmed that 100% of the funds will be directed to various programs specified by the original law, with more than half designated for the Office of Medical Cannabis. The remainder will be divided between a grant program for substance abuse treatment and grants for law enforcement purposes. This decision disregards the governor’s preference for reserving funds for infrastructure and tax reductions.
An investigation by Mountain State Spotlight in October exposed that $34 million had accrued within the Treasurer’s Office from the state’s medical marijuana program. Pack’s office attributed the delay in spending to legal ambiguities surrounding marijuana, which is currently classified as a Schedule I narcotic, rendering it illegal and devoid of recognized medical value.
Pack is not the first state treasurer to express apprehensions about the fund allocation. His predecessor, John Perdue, conveyed similar concerns in 2018 after the Medical Cannabis Act was passed. Riley Moore, who succeeded Perdue in the 2020 election, also opted not to release the funds.
Legislative Changes
As the 2026 Legislative Session approaches, Delegate Evan Worrell, R-Cabell, noted the growing balance of unspent funds and sought to push for change. He successfully introduced legislation requiring the state to disburse funds towards a commission aimed at addressing child abuse and neglect court cases, as well as homelessness services.
Had the governor not vetoed the bill, the funds would have been allocated for one year to these pressing issues, with continued funding for substance abuse research and treatment in subsequent years.
According to Carrie Smith, a spokesperson for the Treasurer’s Office, the complexity of state and federal laws has complicated the release of funds. She confirmed that the funds have now been allocated to the Department of Homeland Security and the Department of Health.