Michigan Bill Would Use Opioid Settlement Funds for Psychedelic Clinical Trials

Michigan lawmakers are considering an unconventional approach to addressing the state's opioid crisis: using settlement funds from opioid manufacturers to research psychedelic treatments for addiction and trauma.

House Bill 6020, introduced by Representative Jaime Green (R-Richmond), would appropriate $50 million from the Michigan Opioid Healing and Recovery Fund to jumpstart clinical trials investigating ibogaine and other psychedelic compounds as treatments for substance use disorders and post-traumatic stress disorder (PTSD).

The Proposal: Settlement Dollars for Research

The bill, which was discussed this week before the House Families and Veterans Committee, represents a growing trend among states to explore alternative treatments for addiction—particularly for populations that have seen limited success with traditional approaches.

The Michigan Opioid Healing and Recovery Fund holds a portion of the state's share of national opioid litigation settlements. Michigan governments are slated to receive nearly $1.8 billion from opioid settlements by 2040, with funds distributed between state agencies and local governments for addiction treatment, prevention, and recovery services.

If passed, House Bill 6020 would mark one of the first state-level commitments to fund psychedelic research using opioid settlement dollars.

Why Ibogaine?

Ibogaine is a naturally occurring psychoactive compound derived from the root bark of the African iboga shrub. While classified as a Schedule I substance in the United States, it has shown promise in early research for interrupting opioid withdrawal and reducing cravings.

Recent federal actions have created new pathways for this type of research. The FDA has authorized phase 1 clinical trials of ibogaine for alcohol use disorder—the first time the agency has permitted U.S.-based trials of the compound. Additionally, federal directives have called for establishing pathways for eligible patients to access psychedelic drugs under the Right to Try Act.

Michigan wouldn't be alone in this approach. Texas allocated $50 million for ibogaine clinical research in 2025, and Louisiana lawmakers recently passed similar legislation creating a psychedelic-assisted therapy pilot program funded by opioid settlement dollars.

Focus on Veterans

The bill's placement before the Families and Veterans Committee signals a particular focus on military veterans—a population disproportionately affected by both PTSD and opioid use disorders.

Veterans face unique challenges in addiction treatment. Many traditional approaches have shown limited effectiveness for those with co-occurring PTSD and substance use disorders. Early research suggests that psychedelic-assisted therapy, when combined with professional counseling, may help address underlying trauma while simultaneously reducing substance dependence.

The Department of Veterans Affairs has already launched its own MDMA-assisted mental health therapy trials, though the agency strongly discourages self-medicating with unregulated psychedelic substances.

How the Funds Would Be Used

The $50 million appropriation would support:

• FDA-approved clinical trials investigating ibogaine for opioid use disorder and co-occurring conditions
• Research infrastructure at Michigan universities and medical centers
• Veteran-specific treatment programs incorporating psychedelic-assisted therapy
• Safety monitoring and data collection to inform future policy decisions

Proponents argue that investing in research now could position Michigan as a leader in an emerging field of addiction medicine, potentially attracting federal research dollars and specialized treatment facilities to the state.

Questions and Considerations

The proposal raises important questions about the appropriate use of opioid settlement funds. These dollars were intended to address the harms caused by the opioid epidemic—primarily through proven treatment and prevention strategies.

Critics may question whether investing in experimental treatments represents the best use of limited resources, particularly when many Michigan communities still lack basic access to medication-assisted treatment (MAT) and overdose reversal medications.

Supporters counter that traditional approaches haven't worked for everyone, and that settlement funds should support innovation alongside established interventions. They note that rigorous clinical trials are necessary to determine whether psychedelic treatments are safe and effective before broader implementation.

What's Next

House Bill 6020 remains under consideration by the Michigan Legislature. If approved, the state would join a small but growing number of jurisdictions exploring psychedelic research as a component of their opioid response strategies.

For Michigan families affected by addiction, the bill represents a potential expansion of treatment options—though any benefits remain years away, pending the outcome of clinical trials and potential FDA approval.

Resources for Michigan Residents

If you or someone you know is struggling with substance use, help is available now:

• SAMHSA National Helpline: 1-800-662-HELP (4357) — Free, confidential, 24/7 treatment referral
• Michigan Opioid Resources: Available through the state's Department of Health and Human Services
• Crisis Text Line: Text HOME to 741741

This article will be updated as House Bill 6020 progresses through the legislative process.