Indiana Legislators Introduce Cannabis Legalization and Psilocybin Research Bills

LOS ANGELES- Indiana lawmakers have initiated efforts to reform the state’s drug policies in the 2025 legislative session, introducing several bills aimed at legalizing cannabis and funding psilocybin research.

Cannabis Legalization Proposals

Senate Bill 113, sponsored by Senator Rodney Pol (D), seeks to legalize cannabis for both recreational and medical use. The bill proposes establishing a regulatory framework and an excise tax for cannabis, along with creating the Indiana Cannabis Commission (ICC) and an advisory committee to oversee the program. It also includes provisions for expunging criminal records related to offenses that would become legal under the new legislation. Fiscal projections estimate that, if enacted, the bill could generate between $46.6 million and $92.6 million in fiscal year 2026 from sales and excise taxes and permit fees.

House Bill 1332, introduced by Representative Blake Johnson (D), proposes a similar regulatory framework for adult-use cannabis, with oversight by a Cannabis Commission. The bill suggests a 10 percent excise tax in addition to the state’s 7 percent sales tax. Revenue estimates indicate an increase of between $41.9 million and $82.1 million per year from sales taxes on cannabis.

House Bill 1178, filed by Representatives Jim Lucas (R) and Shane Lindauer (R), aims to establish a medical cannabis program for patients with serious medical conditions, as determined by their physicians. The Indiana Department of Health would be responsible for regulating the program, which includes provisions to prevent harassment of medical cannabis users by law enforcement and restricts cooperation with federal authorities enforcing federal cannabis laws.

House Bill 1145, sponsored by Representative Heath VanNatter (R), proposes decriminalizing the possession of up to two ounces of cannabis for individuals aged 21 and over. Currently, possession of any amount of cannabis is a misdemeanor punishable by up to 180 days in jail. The bill maintains existing penalties for cultivation and possession of larger quantities.

Psilocybin Research Funding

House Bill 1166, introduced by Representatives Justin Moed (D) and Jake Teshka (R), seeks to appropriate $600,000 from the state general fund over the 2025 and 2026 fiscal years to support an existing psilocybin research program. The program, established under a law signed by Governor Eric Holcomb (R) in March 2024, aims to study the therapeutic potential of psilocybin for conditions such as PTSD, anxiety, depression, bipolar disorder, chronic pain, and migraines, with a focus on veterans and first responders.

The prospects for these bills remain uncertain, given the Republican-controlled legislature’s historical resistance to cannabis reform. Senate President Pro Tem Rodric Bray (R) has previously expressed opposition to cannabis legalization, stating, “I don’t have people coming to me with really compelling medical cases as to why it’s so beneficial.” House Speaker Todd Huston (R) has also voiced skepticism, referring to cannabis as “a deterrent to mental health.”

However, Governor-elect Mike Braun (R) has indicated a potential shift in perspective, suggesting that “it’s probably time” to allow access to therapeutic cannabis. Despite this, Republican leaders in the legislature continue to push back on the idea.

As the 2025 legislative session progresses, these proposals will be subject to committee reviews and debates, determining their viability and potential impact on Indiana’s approach to cannabis and psychedelic research.