The use of marijuana tax revenue for funding Universal Basic Income (UBI), a program that aims to support historically criminalized communities and reduce disparities in income, is a pioneering initiative by several U.S. city governments.
Albuquerque’s Groundbreaking UBI Program
Albuquerque (New Mexico) has started a noteworthy initiative, allocating annually $4,02 million from the cannabis tax revenue to support an UBI program. This funding will be allocated to the Office of Equity and Inclusion, which is responsible for providing $750 in monthly payments over a period of three years to 80 families in International District and Westside. The International District and Westside neighborhoods were chosen because of their historical impact from the criminalization of cannabis, as well as economic difficulties. Funds remaining will support youth initiatives including prevention of substance abuse and recovery services.
Rochester’s Vision for Cannabis Financed UBI
Malik Evans of Rochester in New York proposed using cannabis tax revenues for a UBI that provides 500 monthly payments to approximately 175 families. The program was initially funded by American Rescue Plan and aims to move to a sustainable model using cannabis taxes. The program aims to close the gap in wealth caused by cannabis prosecutions.
The implications of the study and future prospects
The initiatives are part of an increasing trend to use cannabis taxes for programs that promote social justice. Redirecting funds generated from the sale of cannabis to UBI programmes, cities hope to correct historical injustices while providing economic stability for underserved areas. Cannabis taxation may become an important tool for advancing equity in the economy as more municipalities experiment with similar models.