What Cannabis Rescheduling Could Mean for West Virginia’s Medical Program

When cannabis rescheduling comes up in national conversations, it can feel abstract. But for West Virginia, moving cannabis to Schedule III has real implications, especially for a medical program generating revenue without being able to fully use it.

Close-up of cannabis trichomes during cultivation.

Photo courtesy of Harvest Care Medical.

A recent interview with 12 News explored what federal rescheduling could mean at the state level. During the segment, Lee Arco, Director of Plant Operations at Harvest Care Medical, discussed how reclassification could impact everything from research and banking to patient access and employee stability (further insight into some of the points discussed with 12 News can be found HERE).

At the center is a pressing issue: West Virginia has collected more than $30 million through its medical cannabis program, and much of that money is still sitting on the sidelines.

Research Funding In Limbo

One of the most immediate effects of Schedule III classification would be the ability to conduct cannabis research with fewer federal hurdles. That matters in West Virginia because state law already directs medical cannabis revenue toward research, substance use treatment, and law enforcement training.

Since the program launched, the Office of Medical Cannabis has collected more than $30 million in taxes, licensing fees, and interest, according to a recent Mountain State Spotlight investigative report. Yet, years later, the research programs mandated by law have not been fully established. The funding exists, and other states with similar programs have implemented research initiatives, creating a growing gap between what West Virginia intended and what it has been able to implement.

Rescheduling would not automatically launch research programs, but it would remove a major roadblock. Clearer federal guidance and better access to traditional banking would make it far easier for the state to use these funds. That means real data on patient outcomes, program effectiveness, and medical use patterns, all areas the state has already committed to studying.

Banking Access and Financial Stability

Federal classification has made basic banking unnecessarily complicated. Cannabis-related funds often cannot be handled by traditional banks, affecting both licensed businesses and the state. Millions of dollars that could support research and public health programs remain parked in limited financial institutions.

Rescheduling opens the door for access to FDIC-insured banks, standard accounts, and conventional lending options. For businesses, this means smoother operations and long-term stability. For the state, it provides a practical way to manage and distribute funds that are already earmarked for public benefit.

These challenges extend beyond institutions. Employees in the regulated cannabis industry have been denied car loans and mortgages simply because of where they work. Patients have experienced account closures or banking disruptions tied to lawful medicinal cannabis purchases. Expanded banking access would reduce these issues and help normalize a program that is already legal and regulated at the state level.

Economic Implications for West Virginia

Rescheduling would not change West Virginia’s current laws regarding adult-use cannabis. What it would change is how the state's medicinal cannabis program functions within the broader economic landscape.

Unregulated hemp-derived products remain widely available, while neighboring states continue to build regulated markets that retain consumer spending and tax revenue. Meanwhile, West Virginia is holding tens of millions of dollars that were intended to support research, addiction treatment, and law enforcement training.

The allocations already written into law are designed to flow back into public health agencies, prevention programs, and workforce development. Putting that money to work would have immediate effects. Yet every year, those funds remain untouched, delaying the benefits of a program the state has already built, regulated, and funded.

So What?

At its core, the Schedule III conversation is about outcomes. It is about research funding that cannot yet be accessed, public health programs waiting on resources, and patients and employees navigating barriers that do not exist in other regulated industries.

West Virginia’s medical cannabis program is generating revenue. What it has struggled to do is fully activate the systems that revenue was meant to support. Federal rescheduling would not solve every challenge, but it would remove a significant barrier that has kept more than $30 million from being used as intended.

This moment represents an opportunity for West Virginia to move from collection to action, ensuring its medical cannabis program delivers the public health and safety benefits it was designed to provide.