Louisiana Bill Would Tap Opioid Settlement Funds for Psychedelic Therapy Studies

BATON ROUGE – Louisiana lawmakers have advanced legislation that would let the state direct money from opioid lawsuit settlements toward clinical research on psychedelic-assisted therapy.

Senate Bill 43, sponsored by Sen. Patrick McMath (R), would create the Psychedelic-Assisted Therapy Program inside the Louisiana Department of Health. The measure targets studies on ibogaine and psilocybin [and related compounds] for people dealing with opioid use disorder, other substance use issues that occur alongside it, and certain treatment-resistant mental health or neurological conditions.

Under the bill, academic health centers would run the trials in controlled hospital or clinic settings. Researchers would need full federal approvals, including an investigational new drug application from the FDA, a Schedule I research registration from the DEA, and oversight from an institutional review board. Patients would receive the substances along with structured psychotherapy, and human service districts would help identify eligible participants. Parishes could spend their share of opioid settlement dollars to cover enrollment costs for local residents.

The state stands to receive roughly $600 million in opioid settlement payments through 2038. A recent audit found that only about $8.6 million of nearly $100 million already distributed to parishes had been spent by late 2024, leaving a large pool of unallocated money. McMath has pointed to those unused funds as a practical source for the new program, whose first-year cost is estimated at $110,433 – the amount needed for getting the administrative framework of the program off the ground.

The Senate Health and Welfare Committee approved the bill with amendments on March 25. On March 30 it was ordered engrossed and sent to the Finance Committee for review. If it clears both chambers and is signed by the governor, the program would take effect August 1.

Supporters, including veterans who testified at the committee hearing, described ibogaine as a potential breakthrough for post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI) after traditional treatments fell short. McMath said the measure would reduce the need for Louisianians to seek care abroad and position the state to help develop treatments that could eventually win federal approval.

Louisiana is not the first to explore such therapies, but its focus on academic centers, strict federal compliance, and revenue-sharing provisions for any future approved drugs adds a layer of structure that many observers will watch closely. Execution, safety data, and regulatory response in the years ahead will determine the studies’ value. For now, the bill marks another data point in the slow shift toward testing once-taboo compounds under medical oversight.