Albuquerque Uses Weed Tax to Fund ‘No-Strings-Attached’ Guaranteed Income, Sparking Policy Debate Albuquerque’s taxpayer-funded guaranteed basic income (GBI) pilot program, financed by recreational cannabis tax, has reportedly stabilized struggling households. The program provided unrestricted cash to participants, leading to increased savings and credit score improvements. Despite positive local outcomes, the GBI model faces national criticism and legal challenges from conservative lawmakers concerned about labor disincentives and constitutional conflicts.

• Albuquerque is operating one of the few taxpayer-funded guaranteed basic income (GBI) pilot programs in the U.S.
• The program is funded through the city’s recreational cannabis tax and distributed via the Marijuana Equity and Community Reinvestment Fund.
• Participating families reported a critical need for the cash assistance, and the ‘no-strings-attached’ approach allowed them to decide how to best use the funds.
• Data shows a 26% average increase in household savings and 18 individuals moving into higher credit score tiers among participants.
• The pilot targeted vulnerable groups, including single mothers, individuals experiencing homelessness, the food-insecure, and formerly incarcerated youth.
• Critics warn that GBI programs disincentivize work, exacerbate inflation, and create taxpayer liabilities.
• Legal challenges, particularly in Texas, argue that GBI programs violate state constitutional ‘gift clauses’.
• Albuquerque city leaders intend to secure recurring funding to make the GBI program permanent.