DEA Increases Psychedelics Production Quotas for 2026

3 min readPublished On: January 6th, 2026By

WASHINGTON – The Drug Enforcement Administration has approved expanded production limits for key psychedelics, setting the stage for increased scientific inquiry into substances like psilocybin and DMT next year. In a final order published Monday in the Federal Register, the agency established aggregate quotas at levels above its initial proposals, responding to demands from researchers and manufacturers.

Under the new rules, psilocybin will see its annual production cap rise to 50,000 grams, up from 40,000 grams outlined in November’s proposal and a marked increase from the 30,000 grams allowed in 2025. Psilocyn, a related Schedule I substance, gets an even sharper boost to 80,000 grams, more than double the prior year’s limit and well beyond the preliminary figure. For DMT, the quota holds steady at 25,000 grams from the draft, continuing an upward trajectory from 20,000 grams in 2025. These adjustments apply to legitimate medical, scientific, and industrial uses, with the DEA citing public comments on growing research needs as a driving factor.

The move comes as federal interest in psychedelics for mental health treatments gains traction. Clinical trials exploring psilocybin for conditions like depression and PTSD have multiplied in recent years, backed by institutions like Johns Hopkins University and the Multidisciplinary Association for Psychedelic Studies. Manufacturers, including those registered with the DEA for controlled substance handling, have argued that tighter quotas hinder trial recruitment and data collection. By lifting these caps, the agency aims to align supply with projected demand, while maintaining safeguards against diversion, a balance struck through annual reviews of sales data, export volumes, and inventory levels.

Analysts point to the quotas as a pragmatic step forward. “This isn’t a green light for widespread commercialization, but it removes a bottleneck for evidence-building,” said Dr. Matthew Johnson, a psychedelics researcher at Johns Hopkins. The increases could enable larger-scale studies, potentially shortening the path to FDA approvals for breakthrough therapies. For instance, psilocybin’s quota jump represents a 67% year-over-year gain, enough to support an estimated 20-30 additional Phase II trials based on current dosing protocols and participant sizes. DMT’s steady allocation, meanwhile, underscores its niche role in shorter-duration protocols, though advocates note room for further expansion if ongoing veteran-focused studies yield positive results.

Critics, however, question whether the DEA’s formula fully accounts for emerging applications. The quotas derive from a statutory process under the Controlled Substances Act, factoring in historical usage and applicant requests, but they exclude informal estimates for novel delivery methods like microdosing formulations. Still, the process is “data-driven yet conservative,” as it over-relies on past-year figures, which could undershoot demand as more states decriminalize personal use. Oregon and Colorado, for instance, already permit supervised psilocybin sessions outside federal channels, creating a patchwork that complicates national supply planning.

Broader quotas for other Schedule I psychedelics reflect similar trends. Ibogaine stays at 210 grams for addiction research, while LSD holds at 1,200 grams. The DEA also introduced small allocations for newly scheduled synthetics, signaling vigilance on the synthetic drug front. These decisions, effective immediately for the 2026 calendar year, will undergo mid-year reassessment if new evidence emerges.

For the psychedelics sector, this development marks a substantive shift in federal posture. On the flip side, however, we’ve all seen how incremental policy tweaks like these can catalyze investment flows – think venture rounds for biotech firms eyeing Schedule I pivots. Yet, the real measure of success comes down to execution: Will these grams translate to peer-reviewed papers and patent filings, or remain bottled up in regulatory silos? History suggests the former, provided that researchers navigate the compliance maze with exactitude. Stakeholders should monitor the DEA’s next assessment closely; in this field, today’s quota is tomorrow’s baseline, health, and lives.

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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