A pioneering universal basic income (UBI) programme funded by cannabis tax revenue has helped dozens of low-income families in Albuquerque improve their financial stability, with some participants even becoming homeowners in its first year of operation.
The scheme, which launched in April 2025, provides 59 families with $750 per month with no strings attached. City officials announced on Friday that the programme has exceeded expectations, with participating households reporting a 26% increase in savings and significant improvements in food security.
Mayor Tim Keller said the programme’s simplicity was key to its success. “Instead of telling you what you have to do with funding that we would give you, or requiring all sorts of strings to make sure that you’re the right person, we’re just going to say, ‘Look, here’s a little bit of support, you decide what to do with it, because you know best,'” he said. “It sounds so simple and that is what’s so powerful about this programme.”
The scheme, managed by the city’s Office of Equity and Inclusion, initially focused on families with third graders at Whittier and Carlos Rey elementary schools – institutions identified as “facing the city’s greatest challenges”. In December 2025, the programme expanded to include 42 teenagers and young adults aged 16 to 24, many of whom were previously incarcerated, living on the streets or facing food insecurity.
Survey results released at a news conference at Pat Hurley Park showed that 42% of participating families no longer face food insecurity, while 53% now rely less on friends and family for financial help during emergencies. Eighteen families reported improved credit scores, and three have been able to purchase homes since joining the programme.
Marina, a mother of two who wished to be identified only by her first name, said the monthly payment has transformed her family’s life. “Knowing that we have that money for whatever emergency – the house, the rent, the bills, whatever – it gives you rest in the night, I mean, we could sleep now, we don’t overthink things,” she said.
She used the funds to buy glasses for her son Yerick, whose grades improved after he could see properly. The 10-year-old also joined a baseball team and was later selected for an all-star team. “That has been so worth it. It just kept giving me… that happiness of a mother that you can’t explain,” Marina said.
Among the younger cohort, eight individuals saved enough to purchase vehicles, whilst several prioritised graduation over employment, with two graduating early.
The programme costs approximately $1 million annually and is funded through the city’s recreational cannabis tax, distributed via the Marijuana Equity and Community Reinvestment Fund. Unlike similar schemes across the United States, which typically rely on grant funding, Albuquerque’s programme is sustained by local tax revenue from adult-use cannabis sales.
City Councillor Nichole Rogers, who spearheaded the funding effort alongside Councillor Klarissa Peña in March 2025, became emotional discussing the results. “This is exactly the work that government should be doing to stabilise families in our neighbourhoods. Period,” she said. “We’re so busy working two and three jobs and trying to help with homework and run a household that we can’t stop for a minute to just even breathe to dream. This is allowing families to dream again.”
The programme initially faced uncertainty when participants were told in early 2026 that funding would end in May. Rogers proposed a budget amendment for $1.2 million to continue the scheme for another year, though four councillors voted against it.
Rada Moss, manager of the Office of Financial Empowerment, said officials plan to continue tracking results and using the data to support future funding requests. “We didn’t expect people to buy homes in the first year, and so that’s encouraging for us, and we can learn from that and build upon that,” she said.
The programme was initially funded with the goal of offering support for three years, according to city officials. More than 81,000 people in Albuquerque – approximately 15% of the population – live below the poverty line, a rate 20% higher than the US national average.
A 2025 report published by Transform Drug Policy Foundation found that legalising and regulating cannabis for non-medical use in the UK could generate up to £1.5 billion in annual net benefits to the Treasury.
The report, titled High Returns: The Economic Benefits of UK Cannabis Legalisation, showed that tax revenue and criminal justice system savings could provide significant economic advantages while creating up to 15,500 full-time jobs across cultivation, manufacturing, retail and ancillary services.
