Psilocybin law reform is taking hold across the country, with some states much closer than others to legalizing or decriminalizing the psychoactive compound found in magic mushrooms.
Dried psilocybin.
As of March 2025, only two states—Oregon and Colorado—have fully legalized psilocybin for therapeutic or recreational use. In addition, several cities nationwide have decriminalized its possession. However, legislative momentum is building in various states to legalize or decriminalize psilocybin.
With that in mind, here are five states that that are most likely to be the next to legalize or decriminalize psilocybin:
New Hampshire
New Hampshire has made significant strides toward decriminalizing psilocybin this year. Just days ago, the state’s House of Representatives approved legislation that would decriminalize possession of psilocybin for individuals aged 18 and older. Initially proposed to legalize psilocybin, the bill was amended to focus on decriminalization, reflecting a cautious approach to a progressive policy. The bill now awaits consideration by the Senate.
Minnesota
Just a few days ago, a group of five Minnesota lawmakers led by State Representative Andrew Smith (D) introduced House Bill 2906, which would decriminalize the personal use, cultivation, and possession of psilocybin while establishing a Psychedelic Medicine Board.
The bill’s filing came just days after a group of eight Minnesota lawmakers has introduced House Bill 2699, which would also decriminalize the personal use, cultivation, and possession of psilocybin. Under House File 2699, those 21 and older would be allowed to cultivate psilocybin mushrooms for personal use, possess up to a one-year supply, and share small amounts with other adults without financial exchange. The bill also includes provisions to establish a Psychedelic Medicine Board.
Illinois
In February, State Representative Theresa Mah (D) introduced House Bill 2992, known as the Healing Opportunities through Psilocybin Equity Pilot Program Act. The legislation would create a regulatory framework for the production, distribution, and supervised use of psilocybin, the psychoactive compound found in psychedelic mushrooms.
The bill outlines the formation of the Illinois Psilocybin Advisory Board within the Department of Financial and Professional Regulation. By July 1 of the third year after the bill’s effective date, Illinois would begin issuing various licenses for psilocybin-related businesses. Licensees and their representatives would be granted immunity from certain criminal and civil penalties related to the manufacture, delivery, and possession of psilocybin products, provided they comply with the law.
HB 2992 also proposes a 15% tax on psilocybin purchases, with revenue directed to newly established state funds. Additionally, the bill includes provisions for the discipline of licensees, administrative hearings, and penalties for violations. It also amends the Illinois Freedom of Information Act to exempt certain psilocybin-related data from public disclosure and modifies the state’s DUI laws to account for psilocybin use.
New York
In January 2025, New York lawmakers introduced a bill to legalize medical psilocybin. If enacted, this legislation would position New York among a growing number of states advancing psilocybin-assisted therapy for medical purposes. In addition, multiple state lawmakers have endorses decriminalizing psilocybin possession.
New Mexico
New Mexico is on the verge of legalizing medical psilocybin. The state’s full legislature recently passed Senate Bill 219, the Medical Psilocybin Act, with strong bipartisan support. If signed into law by Governor Michelle Lujan Grisham, or allowed to become law without a signature, the bill would allow individuals with conditions such as treatment-resistant depression, PTSD, substance use disorders, and end-of-life distress to access psilocybin-assisted treatment.
The legislation would also establish an advisory board to oversee the program, recommend additional qualifying conditions, and provide guidance on treatment protocols. Additionally, the bill creates a treatment equity fund and a research fund while removing psilocybin from New Mexico’s Controlled Substances Act to protect patients, clinicians, and producers. The program is set to be implemented by December 31, 2027.
