Key facts
- Albuquerque is funding a guaranteed basic income pilot program with recreational cannabis tax revenue.
- The program provides direct, monthly cash injections to participants.
- Participants reported an average 26% increase in household savings.
- The pilot targeted 42 young people, including single mothers and formerly incarcerated youth.
- Critics argue such programs disincentivize labor and exacerbate inflation.
- Legal challenges in states like Texas argue against using public funds for direct cash handouts.
Albuquerque city leaders are highlighting the success of a guaranteed basic income (GBI) pilot program, funded entirely by municipal recreational cannabis tax revenue through the Marijuana Equity and Community Reinvestment Fund. This approach distinguishes it from most U.S. GBI initiatives, which rely on private grants. Mayor Tim Keller defended the 'no-strings-attached' nature of the program, arguing that direct cash allows recipients, who generally earn less than $40,000 annually, to best address their own needs. Data from the pilot, which involved 42 young individuals including single mothers and formerly incarcerated youth, indicated a 26% average increase in household savings and improvements in credit scores. However, the program faces significant opposition. Critics and conservative lawmakers contend that GBI programs disincentivize work, fuel inflation, and create long-term taxpayer burdens. Legal challenges, such as those led by Texas Attorney General Ken Paxton, argue that using public funds for direct cash handouts violates state constitutional gift clauses. Despite these challenges, Albuquerque officials intend to secure recurring funding to make the program permanent.