New Jersey Clears Path for $6M Psilocybin Pilot

TRENTON – The New Jersey Legislature gave final approval last week to a measure that sets up a state-backed pilot program for psilocybin therapy, allocating $6 million to explore the compound’s role in treating mental health conditions. The bill, S2283, now heads to Gov. Phil Murphy’s desk for his expected review in the coming weeks.

Lawmakers in the Assembly passed the legislation on Jan. 12 by a 48-23 margin, following swift Senate concurrence the same day in a 35-4 vote. Sponsored by Senate President Nicholas Scutari, a Democrat from Union County, the bill directs the state Department of Health to oversee an 18-month rollout, including licensing for manufacturers, testing labs, and service centers where adults 21-plus could receive guided psilocybin sessions. Participants would need a referral from a licensed healthcare provider confirming a qualifying diagnosis, such as treatment-resistant depression or anxiety, with sessions structured around preparation, supervised administration, and follow-up integration therapy.

The funding would support research at hospitals and universities, while an advisory board of 15 members [including clinicians, researchers, and patient advocates] would shape rules on facilitator training and equity measures like financial aid for low-income residents. Proponents point to federal studies, including the FDA’s breakthrough therapy designation for psilocybin in depression trials, as evidence of its promise in addressing a national mental health crisis that claims over 100,000 lives yearly from suicide and overdose.

“This opens a door to evidence-based options that could help thousands who haven’t found relief elsewhere,” Scutari said in a statement after the vote. Even some Republicans, like Sen. Michael Testa of Cumberland County, backed the restrictions to clinical settings, calling it “a measured step forward.”

Yet the measure draws fire from advocates who see echoes of New Jersey’s troubled medical Cannabis rollout a decade ago. That program, launched with high hopes, bogged down in red tape, soaring prices and limited supply, leaving many patients sidelined or turning to black markets. S2283, critics argue, commits to research without guaranteeing access, potentially funneling benefits to institutions over individuals. “We’re pouring money into rediscovering what science already tells us, while real people wait,” said Assemblywoman Dawn Fantasia, a Republican from Sussex County, who voted against it.

Michael Brennan, a board member with the Coalition for Medical Marijuana–New Jersey and a chronic pain patient, warned in an analysis that the bill risks corporate consolidation and unchecked costs unless it builds in safeguards like home cultivation rights or insurance mandates from the start. Data from Oregon’s similar psilocybin initiative, now in its third year, shows session fees averaging $2,000 without coverage, a barrier that could repeat here if not addressed.

For the psychedelics sector, intertwined with Cannabis through shared regulatory challenges and investor interest, S2283 marks a cautious advance. With Murphy’s signature all but assured [given his support for Cannabis] the program could generate early revenue streams for licensed operators and attract clinical trials, bolstering New Jersey’s bid to lead East Coast reform, balancing innovation with affordability to avoid the pitfalls that have hobbled prior efforts.

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