A marijuana tax is now funding $750 no-strings-attached monthly payments to families in New Mexico

Tax revenue on the sale of recreational marijuana has become a major source of income for states where it’s legal.

New Mexico is now redistributing that money to communities it says need it most.

Some families in Albuquerque, New Mexico, started receiving monthly no-strings-attached payments this month as part of a new basic income project funded in part by tax revenue from recreational cannabis sales.

The city first approved the $4.02 million basic income plan in March. City revenue from marijuana sales is contributing more than $2 million to that total, according to a city press release.

The program is providing the $750 monthly payments to 80 families in two districts where students struggle with low academic performance. The city will also offer financial counseling to the families.

Albuquerque is not the first city in America to experiment with guaranteed basic income programs, which usually target vulnerable low-income populations like new moms, Black women, or trans people. Guaranteed basic income programs are different than a universal basic income, which would provide monthly support to an entire population, regardless of status.

Advocates for a basic income say it helps people in difficult financial situations find their footing. Basic income studies often show positive results. Recipients say it improves their housing security and mental health and even allows them to seek better jobs through education and more time to search.

It is not, however, without its critics. Lawmakers in South Dakota, Iowa, and Idaho have passed laws banning basic income programs at the city and county level They say the payments are akin to socialism and discourage recipients from working.

City officials in Albuquerque said in the press release that their basic income program is meant to help close the wealth gap. The city says it prioritizes recipients who are “negatively impacted by the criminalization of cannabis,” such as Black, Native American, Asian, and Pacific Islanders, women, and low-income families.

“This program puts money where it’s needed most, into the hands of struggling families working to build a better future,” Mayor Tim Keller said in a statement. “Albuquerque is a city that will always fight to correct injustices and will push to help families get the tools they need to succeed with dignity.”

City Councilor Klarissa Peña, who leads the city’s Cannabis Equity and Community Reinvestment Fund, said in a statement that the program must show “clear implementation strategies and measurable outcomes.”

“This isn’t just about allocating dollars. It’s about delivering tangible benefits to the communities disproportionately impacted by past injustices,” she said. “We owe them more than good intentions. We owe them results.”

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