Senate Finance advanced a proposal to create a state-run medical psilocybin program, voting to recommend passage of the Senate Judiciary Committee substitute for Senate Bill 219 by a 7-3 committee vote.

The bill would task the New Mexico Department of Health with designing and licensing a medical psilocybin program, including who may be qualified providers, dosing and clinical settings. Sponsors say the program would begin no earlier than Dec. 31, 2027, and the House budget contains $2 million to start implementation work.

Senator Joseph Campos, the motion sponsor, told the committee SB 219 would create a tightly regulated medical program and stressed that the measure is “medical” and not recreational. He said the Department of Health would “determine all aspects of the program, including who the qualified providers, medical providers are, the dosage, the medical setting.”

Why it matters: Supporters framed the bill as an evidence-based, clinical response to treatment-resistant behavioral-health conditions, including major depressive disorder, post-traumatic stress disorder, substance use disorder and end-of-life anxiety — the four conditions listed in the substitute as initial qualifying diagnoses.

Public and clinical testimony filled the hearing. Crystal C. Romero, a retired master sergeant who testified she sought psilocybin treatment for severe PTSD, said conventional treatments failed her and “only working with psychedelics like psilocybin provided lasting relief and true healing.” Jeffrey Holland, a clinical therapist, and Dr. Joel Rosen, a family physician, described clinical and anecdotal evidence that psilocybin can reduce anxiety and substance use and assist end-of-life care.

Research and safety: Dr. Larry Lehman, a University of New Mexico researcher testifying in support, described clinical research showing low addictive potential and measurable neuroplastic changes after supervised treatment. Lehman and other witnesses said the intervention is administered in monitored sessions with psychotherapeutic integration and that ‘‘there are no known deaths from this when done in a clinical setting,’’ in the witnesses’ testimony.

Program design and funding: Committee members pressed sponsors and Department of Health staff on details. Dominic Zirla of the Department of Health told the committee part of any license-related funding would cover per diem and travel for advisory-board members and that operational staffing for an advisory board would be handled through department staffing. Senator Cobbs asked about the budgeted $2 million in House Bill 2; Campos said the sponsors proposed shifting $500,000 of that amount into UNM research and leaving $1.5 million to the Department of Health to stand up the program. Campos said additional funding will likely be needed in future years.

Regulatory scope and federal interactions: Sponsors said the bill deliberately excludes FDA-approved synthetic or company-owned pharmaceutical psilocybin products so it would regulate the natural mushroom product similar to medical programs enacted in Oregon and Colorado. Witnesses noted the FDA has designated psilocybin-related treatments a “breakthrough therapy” for treatment-resistant depression but that the FDA’s current approval pathway covers a pharmaceutical formulation and not a whole mushroom product.

Liability, production and access: Committee members raised liability, who would grow and produce the product, licensing standards for producers, and whether payers or insurers would cover treatment. Sponsors said the Department of Health would establish approved in-state producers and licensing standards and that, at present, “patients will have to pay for this themselves” when the program starts; insurance and Medicaid do not cover the therapy now.

Committee action and vote: Senator Campos moved the committee substitute be given a do-pass recommendation. The committee roll call recorded seven votes in favor and three opposed. The motion carried with the committee issuing a do-pass recommendation (committee tally 7–3).

What’s next: The substitute moves forward by the committee vote and will proceed through the Legislature’s remaining committee and floor steps. The program is not slated to start until rulemaking and licensing are complete and not before Dec. 31, 2027, per the bill language.

Ending note: Supporters framed the bill as expanding clinical options for people with severe, treatment-resistant conditions and as paired with research and equity provisions; opponents cautioned about liability, potential expansion outside the medical program and unanswered questions about production and long-term oversight.