Oregon drops its plan to double psilocybin license fees

The Oregon Health Authority has dropped a proposal to double annual license fees for its psilocybin program. On September 22, 2026, the agency said it would keep fees where they are, citing feedback from its advisory board, a rules committee and the public.¹

What was proposed

The July 2026 proposal would have raised annual fees for service centers and manufacturers from $10,000 to $20,000, and for facilitators from $2,000 to $4,000. It would also have ended fee discounts for nonprofits, veterans and low-income licensees.^1,2

The budget problem

The program is paid for by license fees and a 15% tax on psilocybin products. Agency records projected a budget shortfall over the current two-year cycle under every option: $3.8 million with no fee increase, $2.9 million if licensees stayed at the higher fees, and $4.2 million in the worst case. The agency is now considering raising the product tax instead.¹

Demand hasn't kept pace with costs. The program served 5,935 clients in 2025.³ OPB has reported that about a third of service centers have closed since licensing began in 2023,⁴ and InnerTrek, one of the earliest and largest operators in the program, said in June 2026 that it would stop holding sessions.⁵

What clients report

A study published in JAMA Network Open in August 2026 followed 346 clients at 24 service centers. Three months after their sessions, their risk of moderate-to-severe depression was well below where it started, and anxiety and PTSD symptoms also fell. Four clients, about 1.2%, had a reaction that needed medical attention. The study had no comparison group, so it can't show how much of the change was due to psilocybin.⁶

What's next

Any change to the product tax would go through further rulemaking. Meanwhile, three Oregon cities are voting on psilocybin business bans on November 3. Our Oregon guide explains how the program works.