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# Oregon Drops Psilocybin License Fee Increases
- URL: https://www.theamericanquorum.com/state-news-oregon-2026-09-24-b/
- Published: 2026-09-24T09:42:42.000Z
- Updated: 2026-09-24T09:42:42.000Z
- Description: Oregon regulators dropped proposed psilocybin license-fee increases after industry objections, preserving current charges while leaving the program’s projected multimillion-dollar budget gap unresolved.
- Author: News Desk
- Tags: Policy, Oregon

Oregon health regulators have abandoned a proposal to sharply raise licensing fees for the state’s legal psilocybin program, leaving current charges in place while the agency starts a separate rulemaking process for other operational changes.

The [Oregon Health Authority](https://www.oregon.gov/oha/ERD/Pages/OHA-statement-Agency-not-moving-forward-with-proposed-fee-increases-for-psilocybin-licensees-09.22.2026.aspx?ref=theamericanquorum.com) said Sept. 22 that it would not file final rules from the current proceeding and would not adopt the fee increases. The agency attributed the decision to feedback from the Oregon Psilocybin Advisory Board, rule advisory committees and the public-comment period.

The withdrawn package would have doubled annual fees for several major license types. Manufacturers and service centers would have gone from $10,000 to $20,000, facilitators from $2,000 to $4,000, and laboratories ultimately from $10,000 to $20,000\. Application charges also would have risen, according to a [review of the draft](https://vicentellp.com/insights/oregon-psilocybin-rule-update-oha-initiates-rulemaking-with-potential-steep-license-fee-increases/?ref=theamericanquorum.com) by Vicente LLP.

OHA’s [rulemaking record](https://www.oregon.gov/oha/PH/PREVENTIONWELLNESS/Pages/Psilocybin-Administrative-Rules.aspx?ref=theamericanquorum.com) says the 2026 process was intended to implement legislation, refine existing rules and support program sustainability. A rules advisory committee met in July, and the agency accepted public comments from Sept. 1 through Sept. 21 after publishing revised proposals. OHA also acknowledged that the proposal included eliminating reduced fees.

The reversal follows warnings that higher charges could accelerate departures from a young market already losing operators. [Oregon Public Broadcasting](https://www.opb.org/article/2026/07/16/licensing-fees-could-double-for-oregon-psilocybin-service-centers-and-facilitators/?ref=theamericanquorum.com) reported in July that roughly one-third of service centers had closed since licensing began in 2023 and that the draft also would have removed discounts for nonprofit centers, veterans and some low-income applicants.

The financial problem has not disappeared. Documents described by the [Oregon Capital Chronicle](https://oregoncapitalchronicle.com/2026/09/23/oregon-regulators-nix-higher-fees-for-psilocybin-after-industry-backlash/?ref=theamericanquorum.com) projected a $3.8 million shortfall in the current two-year budget cycle without fee increases. A worst-case scenario in which licensees left rather than pay more projected a $4.2 million gap; a scenario with higher fees and stable license counts still projected a $2.9 million shortfall.

That uncertainty matters because Oregon’s first-in-the-nation regulated program was designed to rely on fees after receiving startup support from the general fund. Adults 21 and older may use psilocybin at licensed service centers under supervision; retail take-home sales are not part of the model. OHA licenses facilitators, manufacturers, service centers and testing laboratories and is responsible for enforcing the governing statute and administrative rules.

Public participation shaped the decision. The [Capital Chronicle reported](https://oregoncapitalchronicle.com/2026/09/23/oregon-regulators-nix-higher-fees-for-psilocybin-after-industry-backlash/?ref=theamericanquorum.com) that every speaker at two September hearings opposed the increases and that several participants asked the agency to disclose more detailed budget information. OHA’s formal notice now closes that fee proposal rather than merely delaying a vote.

OHA said it will notify licensees and other participants that the fee rules are being dropped. The agency plans a new proceeding for changes unrelated to fees, targeting Jan. 15, 2027, for those rules to take effect. For operators, the immediate result is relief from a potential doubling of annual costs. For policymakers, the unresolved question is how to stabilize a shrinking, fee-supported program without driving more licensees out.