Texas Allocates $50M for Ibogaine Research as Psychedelics Advance

SXSW panels, Compass Pathways' Phase 3 results bring psychedelics closer to clinical use while raising access and safety questions.

Mar. 12, 2026 at 3:04pm

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Texas lawmakers have approved a $50 million state fund to support FDA-approved ibogaine clinical trials and related infrastructure, as psychedelic medicine takes center stage at SXSW in Austin. Meanwhile, biotech firm Compass Pathways has reported positive late-stage results for its psilocybin-based therapy for treatment-resistant depression, and some veterans have already sought ibogaine treatment in Mexico. The push for psychedelic therapies is raising questions around regulation, access, and safety.

Why it matters

The growing interest and investment in psychedelic therapies, particularly ibogaine and psilocybin, highlights the potential of these treatments for mental health conditions. However, the regulatory hurdles and safety concerns around these substances need to be carefully addressed to ensure safe and equitable access for patients.

The details

Texas has allocated $50 million in state funds to support FDA-approved ibogaine clinical trials and related infrastructure, partnering with private investors and university researchers. Meanwhile, Compass Pathways has reported positive results from its second Phase 3 trial of a psilocybin-based therapy for treatment-resistant depression, and the company plans to submit a New Drug Application to the FDA in Q4 2026. Some veterans have already sought ibogaine treatment in Mexico, though the drug carries risks of prolonged psychedelic experiences and potential cardiac issues.

  • On Monday and Wednesday at SXSW, sessions on psychedelic medicine are scheduled.
  • In February 2026, Compass Pathways announced positive topline results from its COMP006 Phase 3 trial.
  • In December 2025, the bipartisan Freedom to Heal Act was introduced in Congress, which could create a DEA registration process for physicians to treat certain patients with Schedule I investigational drugs.
  • In 2026, Texas Governor Greg Abbott signed Senate Bill 2308, creating a psychedelic research consortium and authorizing $50 million in state funds.

The players

Compass Pathways

A biotech company that has reported positive late-stage results for its psilocybin-based therapy for treatment-resistant depression.

Greg Abbott

The Governor of Texas who signed a bill creating a psychedelic research consortium and authorizing $50 million in state funds.

Dr. Steve Levine

A speaker at SXSW sessions on psychedelic medicine, representing Compass Pathways.

Dr. Jessica Jackson

A speaker at SXSW sessions on psychedelic medicine, representing Mental Health America.

Texas Legislature

Passed Senate Bill 2308, creating a psychedelic research consortium and authorizing $50 million in state funds.

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What they’re saying

“We expect to complete an NDA submission in Q4 (2026).”

— Compass Pathways (Compass Pathways)

“The money is meant to be paired with private investment and university partners to launch multi-year trials rather than one-off experiments.”

— Texas Officials (The Texas Tribune)

What’s next

The key next steps to watch are whether the Texas-backed public-private trials on ibogaine move forward, and how aggressively companies like Compass Pathways push for regulatory approval of psilocybin-based therapies.

The takeaway

The growing interest and investment in psychedelic therapies, particularly ibogaine and psilocybin, highlights their potential for treating mental health conditions. However, the regulatory hurdles and safety concerns around these substances need to be carefully addressed to ensure safe and equitable access for patients.