HR2623

HR2623, the "Innovative Therapies Centers of Excellence Act of 2025," was introduced in the House on April 3, 2025, and subsequently referred to the House Committee on Veterans' Affairs, and then to the Subcommittee on Health on May 8, 2025. This bill requires the Secretary of Veterans Affairs to designate a minimum of five medical facilities as innovative therapies centers of excellence. While the bill establishes the program and sets the requirement, it explicitly states that the establishment and operation of these centers are "Subject to the availability of appropriations for such purpose." Therefore, this bill is an authorization, not an appropriation, meaning no specific funding amounts are currently allocated. The bill's text emphasizes a peer-review process for designating these centers, focusing on scientific and clinical merit, and requires geographic distribution. The inclusion of 'innovative therapies' is broad, but the recent Executive Order from April 18, 2026, titled "Accelerating Medical Treatments for Serious Mental Illness," directly impacts the interpretation and potential implementation of this bill. This Executive Order is expected to significantly accelerate the development, approval, and patient access to psychedelic-based therapies for mental health, creating a more favorable regulatory and funding environment for companies in this nascent industry. This executive action amplifies the potential for psychedelic-based treatments to be a key focus of the VA's innovative therapies centers. Structural winners are companies developing and commercializing innovative therapies, particularly those in the psychedelic-based mental health space. The VA is a significant healthcare provider, and the establishment of dedicated centers for innovative therapies could lead to increased research, clinical trials, and eventual procurement of these treatments. Companies like $CMPS, , $GHRS, $ATAI, , , , and $DRUG are positioned to benefit from this increased institutional focus and potential demand. The legislative path for HR2623 is still early, having only been referred to a subcommittee. A companion bill, S4031, has also been introduced in the Senate, indicating bipartisan and bicameral interest in the issue, which could increase its chances of eventual passage. However, the lack of specific appropriations means that the actual impact will depend on future funding decisions. Even if passed, the centers will only be established and operated "subject to the availability of appropriations." The bill's sponsor, Rep. Correa, is a Democrat from California, and the bill has 27 cosponsors, indicating some level of support. The next steps involve subcommittee consideration, potential markups, and then full committee review before it can be considered by the full House.