New Mexico Becomes Third State in the U.S. to Legalize Access to Psilocybin

On April 7, 2025, New Mexico Governor Michelle Lujan Grisham signed into law SB-219, the Medical Psilocybin Act (the Act), making New Mexico the third state in the country to create a legal pathway for patients to access psilocybin, a naturally occurring psychedelic compound produced by certain types of mushrooms. Notably, New Mexico is the first state to do so through legislation. Oregon and Colorado, the first two states to legalize access to psilocybin, were approved through voter initiatives. The Act had bipartisan support; it passed in the House with a vote of 56 to 8 with 6 abstentions and passed in the Senate with a vote of 33 to 4 with 5 abstentions. The passage of the Act is a historic milestone that demonstrates state lawmakers continue to recognize the potential medical benefits psilocybin can offer their constituents in treating a variety of medical conditions.

Below are key takeaways from the Act:

• The New Mexico Department of Health (the Department) will be responsible for the development and oversight of a program that provides regulated access to psilocybin for qualifying patients to alleviate certain medical conditions (the Program). Psilocybin must be administered to patients by an approved health care provider who is licensed in New Mexico and in an approved setting.

• A “qualifying patient” as currently defined could include minors, so long as a licensed health care provider has judged the patient to be a medically appropriate candidate for the use of medical psylocibin based on being diagnosed with a qualifying condition.

• A “qualifying condition” is limited to: (1) major treatment-resistant depression; (2) PTSD; (3) substance use disorders; and (4) end-of-life care. However, other conditions may be approved by the Department for inclusion in the Program.  

• The Act instructs the Secretary of the Department to create a Medical Psilocybin Advisory Board (the Board). The Board is made up of nine members who are “knowledgeable about the medical use of psilocybin.” The Board must include at least one member who is enrolled in an Indian nation, tribe, or pueblo located wholly or partially in New Mexico, at least one member who is a mental or behavioral health equity advocate, at least one member who is a representative of the health care authority, and at least one member who is a veteran of the U.S. armed forces. Among other things, the Board will be responsible for recommending approved medical conditions for inclusion in the Program, assist the Department in establishing, monitoring, and evaluating best practice standards for psilocybin, and recommend dosage standards for psilocybin.  

• The Act created two funds: the medical psilocybin treatment fund, which is to be used to fund treatments of qualified patients who meet defined income requirements, and the medical psilocybin research fund, which will be used to provide grants to state research universities and health care providers studying any facet of the medical use of psilocybin. 

• The Act expressly excludes U.S. Food and Drug Administration (FDA)-approved products that contain psilocybin from use in the Program. Notably, the Act carved out the use of FDA-approved products containing psilocybin in two circumstances: (1) in any research conducted by state research universities or health care providers using awarded grants from the medical psilocybin research fund, and (2) by qualified patients whose treatments may be funded through the medical psilocybin treatment equity fund.

• Lastly, the Act included an amendment to the New Mexico Controlled Substances Act which carves out psilocybin and psilocin (the compound that psilocybin converts to in the body) from the Schedule I substances list when used under the Act .

The Program must be implemented by December 31, 2027. In developing the Program, the Department must work in collaboration with a variety of stakeholders, including the Board, health care providers, and state higher education institutions. The Department must also engage in a tribal consultation in compliance with the State-Tribal Collaboration Act. 

Foley will continue to monitor developments in New Mexico, including but not limited to the Department’s development of the Program. In its current form, however, the Act offers licensed health care providers in New Mexico the opportunity to expand services offered to their patients to include medical psilocybin services under the Program. This could have a profound effect on patients who are suffering and getting little alleviation with their current treatment options. We recommend health care providers keep a watchful eye on New Mexico as the states in which they are licensed may soon enact similar medical psilocybin programs that could impact their practices.

Please reach out to your Foley relationship partner, or to our Health Care Practice Group with any questions about the new law.