Cannabis tax funds citizen’s income – basic income improves family finances

A pilot program in Albuquerque, New Mexico, is using tax revenue from regulated cannabis sales to fund a local form of citizen’s income. The program is based on basic income, where participating families receive a fixed monthly payment without requirements or restrictions on how the money must be used.

After the first year, city officials say the initiative has produced positive results. Several households report increased savings, improved food security, better credit scores and greater financial stability.

750 dollars a month with no work requirement

The program was launched in April 2025 and gives participating families 750 dollars per month. The money is paid out as basic income and, in practice, functions as a targeted citizen’s income for low-income families in selected parts of the city.

The model is based on the idea that households themselves know best whether the money is needed for rent, food, bills, transport, children’s needs or other urgent expenses. Unlike many traditional welfare programs, the support is not earmarked.

The initiative was first aimed at families with children in third grade at Whittier Elementary School and Carlos Rey Elementary School. These areas were selected because many families there live with economic hardship.

More savings and less need for emergency help

According to the results after the program’s first year, participating households increased their savings by 26 percent. 42 percent of families say they are no longer living with food insecurity, and 53 percent say they are less likely to ask friends or relatives for financial help during emergencies.

Credit scores have also improved for several participants. 18 families report higher credit scores, and three households are said to have been able to buy a home since joining the program.

For city officials, this is seen as a sign that regular payments can create stability for families who often lack financial margins. Basic income can therefore give people the ability to plan beyond the next bill.

Cannabis revenue is used for social reinvestment

The program is funded through the Albuquerque Cannabis Equity & Community Reinvestment Fund. When the initiative was approved in 2025, 4.02 million dollars were allocated, of which just over 2 million dollars came from the city’s cannabis tax revenue.

The goal is to reinvest money in groups the city describes as especially affected by previous criminalization and economic injustice. In Albuquerque, citizen’s income is therefore not only a social policy experiment, but also part of the city’s attempt to use revenue from regulated cannabis for reinvestment in the local community.

A model for future regulation

Albuquerque differs from many other basic income projects in the United States because the program is not mainly based on private donations or temporary grants. Instead, it uses local tax revenue from a regulated cannabis market.

For supporters, the model shows how regulation can create resources that are returned to families and areas with significant needs. For critics, questions remain about long-term funding, political support and how the results should be measured over time.

In practice, the initiative is about more than statistics. For families, 750 dollars a month can mean bills being paid on time, a food budget that lasts longer, children’s needs being covered or reduced everyday stress.

Albuquerque has therefore become a clear example of how cannabis tax revenue can be used to fund basic income and citizen’s income as tools for social reinvestment.

Source

Cannabis funded basic income scheme successful after first year, city leaders say