Cannabis Tax Revenues Fuel Universal Basic Income Initiatives in U.S. Cities

Several U.S. cities are pioneering the use of cannabis tax revenues to fund Universal Basic Income (UBI) programs, aiming to address economic disparities and support communities historically affected by cannabis criminalization.

Albuquerque, New Mexico, has launched a notable initiative by allocating $4.02 million annually from cannabis tax revenues to support a UBI program. Half of this funding is directed to the Office of Equity and Inclusion to provide $750 monthly payments to 80 households over three years, focusing on the International District and Westside neighborhoods. These areas were selected due to their economic challenges and historical impacts from cannabis criminalization. The remaining funds support youth-focused initiatives, including substance use prevention and recovery services .

In Rochester, New York, Mayor Malik Evans has proposed utilizing cannabis tax revenues to sustain a UBI program that currently provides $500 monthly payments to 175 families. Initially funded by the American Rescue Plan, the program aims to transition to a more sustainable model through cannabis taxation. This approach seeks to address the wealth gap exacerbated by past cannabis-related prosecutions .

These initiatives reflect a growing trend of leveraging cannabis tax revenues for social equity programs. By redirecting funds from cannabis sales to support UBI programs, cities aim to rectify historical injustices and provide economic stability to underserved communities. As more municipalities explore similar models, cannabis taxation could become a pivotal tool in advancing economic equity nationwide.