Why Trump Is Pushing Psychedelics To Treat Mental Illness
The Trump administration signed an executive order on April 18th to fast-track FDA review of psychedelic drugs for mental health treatment, issuing priority vouchers to three companies. While veterans and advocates praise the potential of treatments like MDMA and psilocybin for PTSD and depression, scientists warn that rushing the approval process could compromise research rigor. The move marks a sharp reversal from Trump's first-term drug stance, with some suggesting it may be politically motivated.
Summary
On April 18th, the Trump administration signed an executive order aimed at accelerating FDA review of psychedelic drugs for treating serious mental illnesses, particularly for patients who have not responded to traditional therapies. Three drug companies received priority review vouchers, including Compass Pathways — the only public company among them — whose stock rallied alongside the broader psychedelic drug sector following the announcement. The order also included the reclassification of marijuana and highlighted medical benefits of alternative medicines, representing a significant policy reversal from Trump's first term.
The executive order specifically named psilocybin, MDMA, LSD, and ibogaine as compounds of interest. Psilocybin has the most robust clinical evidence, with published Phase 2 and early Phase 3 data from Usona Institute and Compass Pathways showing promise for major depressive disorder. MDMA, technically classified as an empathogen rather than a classic psychedelic, has shown strong results in PTSD treatment — one study found over 70% of severe PTSD participants no longer met diagnostic criteria after MDMA-assisted therapy — yet the FDA rejected an application for it in 2024 due to concerns about study design. Ibogaine, meanwhile, has never undergone a U.S. clinical trial and carries known cardiovascular risks, making its inclusion in the executive order controversial among scientists.
Veterans featured in the segment provided personal testimony about the transformative impact of psychedelic-assisted therapy. Marie Phelan, an Army Reserve veteran diagnosed with complex PTSD in 2023, described her MDMA-assisted therapy experience in a VA clinical trial as allowing her to emotionally process years of trauma. Juliana Mercer, a Marine Corps veteran and executive director of Healing Breakthrough, spoke about how her psychedelic experience gave her 'permission to heal' and emphasized the importance of preparing the VA for real-world clinical implementation.
Scientists and researchers expressed concern that the executive order's accelerated timeline — compressing the FDA review from the standard ~10 months to roughly 1-2 months — could lead to approval based on insufficient data or politically motivated relaxation of standards. They stressed the need for rigorous, objective evaluation of both safety and efficacy, particularly given the varying risk profiles of different compounds. Despite these concerns, proponents like Compass Pathways argue that companies already in late-stage trials are being held to the same FDA standards as any other drug.
The political context of the executive order was also scrutinized. With Trump's economic approval ratings at their lowest point across both terms, some industry sources suggested the move may be an attempt to win back supporters, particularly veterans. However, veterans interviewed were skeptical of this framing, noting that cuts to VA funding and veteran benefits undermined any goodwill generated by the executive order. Advocates like Mercer insisted their vocal support was self-motivated and not politically coerced.
Key Insights
- Scientists argue that ibogaine's inclusion in the executive order overstates the current level of scientific understanding, noting there has never been a U.S. clinical trial examining its safety or efficacy, while it also carries known cardiovascular risks.
- The FDA ultimately rejected MDMA-assisted therapy in 2024 despite one study showing over 70% of severe PTSD participants no longer met diagnostic criteria, citing concerns about the quality and rigor of the underlying research.
- Compass Pathways notes that its drugs were already in the final phase of clinical trials and would have been submitted to the FDA this year regardless, meaning the executive order's expedited timeline primarily benefits companies further back in the pipeline.
- A researcher expresses concern that FDA standards could be relaxed for politically motivated reasons, stressing the need for objective scientific evaluation that includes perspectives such as cardiologists' assessments of compound-specific harms.
- Veterans interviewed are skeptical that the executive order will win back political support, with one veteran noting that cuts to VA funding and benefits undermine any goodwill, saying 'you're not even going to get my support if you fully fund the VA and benefits.'
Topics
Transcript
[0:00] Some psychedelic drugs in the United States are the closest they've ever been to getting FDA approval. In late April, three drug companies were issued priority vouchers by the FDA. The goal fast track the final stages of their review. It was part of an executive order signed by the Trump administration on April 18th, which notes that psychedelics have shown potential in clinical studies to address serious mental illnesses for patients who have already tried traditional treatment options. It certainly gives a significant tailwind encouragement, validation, but it's really to a lot of [0:31] work that was already underway, particularly for companies like ourselves. Compass Pathways is the only public company to receive one of the priority vouchers,…
Full transcript available for MurmurCast members
Sign Up to AccessMore from CNBC
Energy Prices Ease In June, Dropping U.S. Inflation To 3.5% Annually
U.S. inflation dropped to 3.5% in June, the first monthly decrease of 2024, primarily driven by a 15.7% energy index decline tied to falling oil prices and increased tanker traffic through the Strait of Hormuz. Core inflation remains elevated at 2.6%, while emerging pressures from AI-driven demand for memory chips and tariffs are pushing up prices for computers, clothing, and electricity.
How China came to dominate the global EV factory boom
Chinese EV manufacturers have dramatically expanded their global manufacturing footprint and supply chain investments, outpacing US firms by 3-6 times in recent years. Driven by intense domestic competition and trade barriers, Chinese companies like BYD are establishing themselves as the dominant automakers of the EV era through strategic factory investments in key markets worldwide.
Americans keep getting priced out of fun. Here's how it impacts us at home
"Fundflation" — the surge in entertainment and experience pricing since the pandemic — is pricing out consumers, particularly Gen Z, from both live events and at-home activities like streaming and gaming. As subscription services and gaming hardware costs double, younger consumers are cutting back on leisure spending and exploring free alternatives like physical media.
Will The New Housing Bill Lower Housing Costs?
The newly enacted 21st Century Road to Housing Act addresses America's housing affordability crisis through three main reforms: increasing housing supply via construction incentives and zoning reforms, improving access to housing finance, and limiting large institutional investors from purchasing single-family homes. However, experts caution that meaningful impacts on housing costs may take years to materialize due to implementation challenges and the supply-side nature of the measures.
AI’s Next Race: Cost, Control, and Compute
The AI industry is entering a "postfrontier era" where success depends on orchestration, cost control, and open-weight models rather than frontier model capabilities alone. Perplexity CEO Arvin Hashemi and Benchmark's Peter Fenton predict that 90%+ of AI tokens could come from open-weight models within 18 months, driven by enterprise adoption, cost pressures, and performance benefits of specialized models tailored to specific tasks.