NJ Psilocybin Legislation Exposes Conflicts Between Advocates for Different Therapeutic Models

By Jack Gorsline

In the final hours of his administration, outgoing New Jersey Governor Phil Murphy signed into law a reconciled version of a psilocybin therapy pilot program punctuating a three-year legislative odyssey defined by bitter political infighting, allegations of “pharmaceutical gatekeeping,” and a high-stakes clash between national lobbying interests and local grassroots advocates.

The signing on January 20th of Assembly Bill 3852, creates a pilot program marking a pivotal moment for the Garden State which now joins Oregon, Colorado, and New Mexico  as the fourth US state to establish a legal framework for the use of psilocybin, the predominant psychedelic compound present in “magic mushrooms.” However, the legislation’s path to Governor Murphy’s desk was anything but harmonious. The legislative process exposed a deep rift between those seeking a highly medicalized, pharmaceutical-led model and those advocating for equitable access to psilocybin mushrooms through a community-based approach.

Even as the ink dried on the new law, the struggle for the future of New Jersey’s psilocybin therapy program shifted immediately to the next legislative session. State Senators Nicholas Scutari and Joseph Vitale have already pre-filed S3148 – the Psilocybin Behavioral Health Access and Services Act – a comprehensive bill that aims to restore the expansive framework for access to psilocybin mushrooms that advocates say was nearly stripped away by corporate interests.

Central to the controversy is the role of synthesized psilocybin and the influence of international drug developers. As the legislature debated the merits of various bills, Compass Pathways, a prominent UK-based biotechnology company, established a significant foothold in New Jersey. In 2024, the company entered into a strategic research collaboration with Hackensack Meridian Health to develop clinical models for the delivery of COMP360 – a patented, synthetic version of psilocybin that is widely expected to be approved for medical use by the U.S. Food and Drug Administration (FDA) by the end of this year.

While Compass Pathways and its partners frame these collaborations as essential for bringing FDA-approved treatments to underserved communities, local advocates viewed the timing and nature of these deals with skepticism. Critics argue that the “medicalized” model favored by many pharmaceutical companies – which often excludes the use of natural fungi in favor of patented, lab-grown compounds – threatens to price out the average citizen and limit access to those with significant financial means.

In a report for the advocacy group New Jersey for Fungi and Plant Medicines (NJFPM), author Neal Usatin warned that early versions of the legislation, specifically Assembly Bill 3852, had shifted too far toward serving pharmaceutical interests. Usatin noted that A3852 was “significantly more medicalized,” focusing on research pilot programs that mirrored the goals of pharmaceutical entities seeking to isolate the drug’s effects and protect intellectual property.

“The voices of NJ constituents and experienced professionals in psychedelics seemed to be systematically silenced to serve the uninformed, inelastic appetites of NJ legislators,” wrote Usatin in an email following the bill’s signing.

While representatives from Compass Pathways did not reply to Lucid News’ request for comment, prominent A3852 supporter Reason for Hope – a mental health crisis  advocacy-focused nonprofit – noted in their official statement to Lucid News that to their knowledge, Compass Pathways has not been particularly focused on A3852’s progression through the NJ state assembly in recent weeks.

“We are not aware of any direct involvement by Compass Pathways in this legislation and nothing in our experience suggests they played a role” the statement read. “At this stage, we expect Compass is focused on streamlining federal and state rescheduling processes in anticipation of FDA approval.” 

The legislative battleground was defined by the contrast between two competing visions: the advocate-backed S2283 and the more restrictive A3852.

The original Senate bill, S2283, proposed a framework that included the manufacture and distribution of psilocybin containing mushrooms, alongside mandatory “preparation” and “integration” therapy sessions – components that practitioners consider essential for safety and efficacy. However, as the bill moved through the Assembly, a substitute version (A3852) emerged that many grassroots leaders viewed as a betrayal.

As originally drafted, A3852 would have established a $6 million Psilocybin Behavioral Health Access and Therapy Pilot Program, but also stripped away requirements for integration counseling and removed the pathway for a local industry built on access to psilocybin mushrooms. Oregon, for example, has a legal framework that created psilocybin service centers where people can access psilocybin mushrooms from licensed providers. 

Denise Rue, founder of the New Jersey Psychedelic Therapy Association (NJPTA), was a vocal critic of this shift. In a statement released in December 2025, Rue highlighted the irony of national veterans’ organizations lobbying for a bill that excluded access to less expensive psilocybin mushrooms as opposed to a pharmaceutical product. 

“I’ve heard that this bill is only ‘the first step.’” Rue said. “But as each year passes, over 700 New Jersey citizens commit suicide. One in five residents continue to suffer from a mental health condition. Many of them might have been helped if they had safe and supported access.”

In recent weeks, Rue has also publicly criticized local and state media coverage in New Jersey surrounding the newly-signed bill – decrying online that coverage published by a local ABC affiliate in particular was a “great example[s] of inaccurate reporting & sensationalized headlines.” 

While Rue acknowledged that A3852 would “establish $6 million for a pilot program” she noted that a claim in ABC7 reporting that the bill would “legalize” psilocybin is inaccurate.

“There is nothing here about legalizing magic mushrooms,” said Rue of the legislation that would simply establish a pilot program for psilocybin therapy. “These kinds of articles do nothing to further the reasonable discussion of psychedelic medicines” she added.

The tension in Trenton was exacerbated by what local leaders like Rue described as an “arrogant” approach by outside lobbying groups. Rue said that grassroots organizations had spent years building relationships with New Jersey legislators, but were “blindsided” by national entities with separate agendas. Both Rue and Ustain have expressed frustration towards Reason for Hope for what they perceive as a lack of commitment to work directly with grassroots stakeholders resulting in the “watered-down” framework laid out in A3852.

“I take issue with outside groups swooping in without consulting with or forming an alliance with grassroots groups,” Rue stated on the day A3852 was signed. “NJPTA and other coalition members worked hard for three years… only to be blindsided by particular groups who have a national agenda that may not be in the best interest of New Jersey citizens. The reality is that if you have money and can hire a lobbyist, you seem to have more say in this political climate.”

Similarly to Rue and Usatin, New Jersey cannabis industry stakeholders with strong ties to the state’s psychedelic community have voiced concerns over the lack of indigenous involvement in drafting the newly-signed pilot program bill.

“These are indigenous medicines and ancient technologies by indigenous peoples,” said Josh Alb, a longtime New Jersey cannabis community organizer and founder of Cannademix.

Alb also noted in his comments to Lucid News about A3852 that, “the fact that the state has not consulted with any [indigenous leaders] has been a misstep that needs to be corrected immediately.”

“New Jersey recognizes three tribes the Nanticoke Lenni-Lenape Tribal Nation, the Ramapough Lenape Nation, and the Powhatan Renape Nation who are the native people of NJ,” Alb continued. “These people should be consulted and reparations and equity efforts need to be geared at them first and foremost.“

Advocates like Rue and Usatin also lamented the removal of social justice provisions from A3852. Early iterations of the reform efforts included decriminalization and the expungement of past drug offenses, measures that were eventually “kicked to the curb” in favor of a model that requires licensed physicians to write prescriptions for psilocybin compounds.

When asked to comment on Rue and Usatin’s claims that they were excluded from crafting the bill altogether, Reason for Hope State Policy and Advocacy Director Jesse MacLachlan rejected claims that his group has not worked closely enough with local stakeholders. MacLachlan noted in a statement to Lucid that the group “respect[s] the long-standing work that many New Jersey advocates have done in this space. 

“Reason for Hope was happy to offer our feedback,” said MacLachlan, “and we look forward to working with interested stakeholders during the pilot program’s implementation and for continued progress in New Jersey.“ 

In response to Reason for Hope’s statement, Usatin urged the group and others seeking to influence the pilot program to consult local and statewide groups on the roll-out process for the legislation. He disputed the group’s claim that grassroots organizers were given a meaningful voice in crafting and advocating for A3852.

“I think Reason for Hope should be reaching out to NJ citizens and grassroots advocates to include us in their efforts moving forward in NJ,” said Usatin, “especially if they plan to keep working on implementation of this law.” 

“But they have not done so thus far, and there is no reason to hope that they will do so moving forward.”

Stalwart psychedelic advocacy group Veterans Exploring Treatment Solutions (VETS) – is another organization based outside of  the Garden State that has expressed support for A3852 following Governor Murphy signing it into law.

“This legislation is another critical step forward in expanding access to evidence-based treatments for mental health conditions,” said Logan Davidson, VETS’ Legislative Director in a press release.

“New Jersey’s thoughtful, clinically focused approach demonstrates how states can advance psychedelic therapy research while maintaining rigorous safety standards and FDA alignment. By establishing regulated pilot programs in hospital settings, New Jersey is creating pathways for patients who have exhausted conventional treatments to access potentially life-saving therapies.”

Despite the friction, the final version of A3852/S2283 signed by Governor Murphy represented a partial victory for grassroots advocates. Through a series of late-stage negotiations, the reconciled bill re-incorporated several key demands.

In a major win for grassroots coalition members, the final version added back language requiring preparation and integration sessions and allowed for the growing, sourcing, and manufacturing of psilocybin within the state. The bill creates a 15-member advisory board and allocates $2 million each to three hospitals – one in the northern, central, and southern regions of the state – to conduct research and treatment.

The law establishes that the advisory board’s criteria for approving manufacturers cannot prohibit the use of naturally grown mushrooms that meet safety standards, a crucial concession for those who fear a total pharmaceutical monopoly.

While the pilot program is a significant milestone, the real goal for New Jersey advocates lies in the newly pre-filed S3148. This “comprehensive framework” aims to go beyond a limited hospital-based pilot to establish “Psilocybin Service Centers” accessible to any resident over 21 with a qualifying medical condition.

S3148 explicitly defines “manufacture” to include the cultivation of fungi and “psilocybin product” to include the fungi themselves, intentionally creating a legal space separate from FDA-approved pharmaceutical drugs. It also mandates a three-step process: a preparation session, a supervised administration session, and a follow-up integration therapy session.

For the advocates who have spent years in the hallways of the New Jersey State House advocating for these measures, the passage of the pilot program is not the end of the journey, but the opening of a new chapter.

“The pilot program remains to be seen if it will pave the way for equitable access or if the medical establishment in alignment with pharmaceutical companies will become the gatekeepers,” Rue said.

Notably, Reason for Hope seems poised to stay heavily involved in New Jersey’s regulatory roll-out process for the foreseeable future, in addition to voicing strong support for even further legislative reform efforts.

“We’ve been in discussions with New Jersey stakeholders interested in a Medicaid-specific pilot, which could help inform future treatment models and coverage decisions that will be critical to equitable access,” said MacLachlan in a statement provided to Lucid News.

Regarding future policy reform and coalition building efforts, MacLachlan expressed strong interest in collaborating, “across hospital systems, community-based partners, clinicians, and patient-serving organizations to ensure that research reflects real-world population and access considerations, and to support the Department of Health and Advisory Board alongside interested stakeholders on broader implementation.”

“With any emerging field,” MacLachlan concluded, “policymakers must remain attentive to potential incentives and biases across a range of institutional actors, and ensure that public policy is guided by evidence, transparency, and responsibly balancing safety and access. We anticipate that, over time, an FDA-regulated medical model and state-regulated access frameworks will coexist in most states, including New Jersey. “

Despite the discord over some policies in A3852, Usatin and other grassroots advocates appear to be on the same page as Reason for Hope as to what policy frameworks may prove politically viable in the future. 

“Since I began advocating for the Psilocybin Behavioral Access bill in 2023,” said Usatin, “I’ve imagined that this bill would establish an access model to natural psilocybin parallel to FDA and DEA compliant medicalized access to pharmaceutical psilocybin.” 

However Usatin clarified his view saying, “The problem in NJ is that now that a FDA and DEA law has passed, the likelihood of a naturally-sourced botanical psilocybin being selected for the pilot program when the FDA has approved clinical trials for synthetic psilocybin is slim.” 

In Usatin’s mind, the inevitably of FDA-approved psychedelic compounds, “makes the argument for natural psilocybin regulated by the state an uphill battle.”

“Synthetic psilocybin companies have a vested interest in keeping natural psilocybin illegal, at least until their patent protections run out,” he added. “So, an argument for natural psilocybin and a parallel state-regulated marketplace is not impossible, but this law makes it a much more difficult conversation to have.”

“This is where my advocacy efforts will focus,” he added, “in addition to getting NJ stakeholders and grassroots advocates with real-world experience administering psychedelic medicines in the Advisory Board.”

“This bill is a first step for access to psychedelic medicines in NJ,” Usatin concluded, “but it clearly favors certain interests.” 

“Our only hope is that [newly-elected] Governor [Mikie] Sherrill and the legislature leadership will be open to including us in the conversation rather than only listening to out-of-state organizers and their influential lobby representatives.”

As New Jersey transitions to a new administration and a new legislative session, the eyes of the national psychedelic movement remain fixed on the Garden State. The outcome of S3148 will likely determine whether New Jersey follows a medicalized path using synthetic psilocybin or creates a community-centered model that advocates say prioritizes natural medicine and social equity. For now, the struggle for the “spirit of psychedelics” in New Jersey politics continues.

Update: A prior version of this story included a quote from Neal Usatin reflecting his thoughts that the final version of A3852 had reconciled the concerns of in-state stakeholders and grassroots advocates. After reading the bill more closely Usatin has within drawn this comment.