Section 1.

Establishes the Breakthrough Therapies Research (BTR) Grant Fund as a non-reverting special fund in the Department of Health and Human Services, Division of Mental Health, Developmental Disabilities, and Substance Use Services (Division) to award two BTR Grants to pay for costs of an eligible project or study, intended to last three years.

Defines “breakthrough therapies” as a drug designated as a Breakthrough Therapy granted an expedited approval pathway by the United States Food and Drug Administration (FDA).

Directs the Division to accept applications in a timely fashion and to make awards by August 1, 2027. Limits eligibility to federal medical or research entities and academic institutions in the State with requisite infrastructure and experience. Requires all research be conducted in the State and that participants must be 21 or older. Requires grant recipient to attest that grant funds will be used to research psychedelic drugs in adherence with FDA protocols and federal law, including the April 18, 2026, Executive Order on “Accelerating Medical Treatments for Serious Mental Illness” (EO). Requires research to concentrate on a specified population (veterans, first responders, frontline healthcare personnel, or individuals who have experienced domestic violence or sexual assault) to treat anxiety and/or depression. Requires grantees to measure participant pain levels and to submit research findings and recommendations to the Task Force established by Section 2 of this act by January 15, 2031.  

Directs the Division to award up to five grants of at least $1 million based on Task Force recommendation by July 1, 2027. Directs the Division to announce grant recipients and report to the specified NCGA committee on July 1, 2027, on specified project or study information. Permits the Division to adopt rules for the purposes of this act.

Section 2.

Establishes the Breakthrough Therapies Task Force within the Division and sets out membership requirements. Requires appointment of an initial Task Force by December 1, 2026. Sets out nine duties including specified reporting requirements to the Division and review of BTR Grant projects or studies.

Expires December 31, 2031.

Section 3.

Appropriates $5.4 million for 2026-27 from the General Fund to the Division, with $5 million deposited into the BTR Grant Fund and $400,000 for administrative costs. Effective July 1, 2026.

Section 4.

Directs the Division to identify opportunities and take necessary actions for the State to leverage federal funding for BTR Grants, including under the EO.