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 to establish a legal framework for the therapeutic 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.
The Role of Pharmaceutical 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.”
A Tale of Two Bills
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.
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NJ Psilocybin Legislation Exposes Conflicts Between Advocates for Different Therapeutic Models
