Albuquerque says the taxpayer-funded guaranteed income program is working

Albuquerque city leaders are praising the results of the taxpayer-funded guaranteed assessment (GBI) program, arguing that the direct, monthly cash injections are more sustainable for struggling families.

During Friday’s press conference, Albuquerque City Councilwoman Nichole Rogers emphasized that the city is making history by implementing one of the few GBI programs in the country funded directly by municipal tax dollars. Albuquerque Mayor Tim Keller noted that while most similar programs across the United States rely heavily on private funding, Albuquerque is taking a different approach. The program is funded entirely by the city’s recreational marijuana tax and distributed through Marijuana Equity and the Community Reinvestment Fund.

Albuquerque is part of a small but aggressive group of municipalities that are shifting the burden of guaranteed income from local taxpayers. Austin, Texas, previously made headlines as the first major city in the Lone Star State to commit $1.1 million in taxpayer funds and $500,000 in charitable donations to complete its own pilot program, which has faced major challenges at the federal level.

SOME BLACKS DEMAND COSTS AS ONLY ‘TRUE FORM OF JUSTICE’

These local programs emerged after Americans in more than 100 cities received guaranteed local income through private donations and temporary funds from the American Rescue Plan Act (ARPA). As those federal dollars dried up, mayors in cities like Evanston, Illinois, Newark, New Jersey, and Salem, Massachusetts, pushed to make these pilots a permanent public policy—following Illinois’ Cook County, which became the first local government to establish a permanent, budgeted GBI program.

According to local reports from KRQE News 13, participating families expressed a significant need for financial assistance. Mayor Keller defended the “unattached” construction of the program, saying that traditional government funding often fails to achieve its goals due to bureaucratic obstacles.

“Instead of us telling you what to do with the funding we’re going to give you or needing all kinds of strings to make sure you’re the right person, we’re saying, ‘Here’s a little bit of support, decide what to do with it; because you know best,'” Keller said.

Keller argued that strict eligibility metrics and administrative red tape often alienate the underserved communities they are designed to serve. Notably, the Albuquerque pilot did not meet the basic salary requirements to qualify, although organizers reported that most participants earned an annual salary of less than $40,000.

Data provided by municipal planners suggests that giving participants complete freedom over how to spend money produces immediate, measurable benefits in financial health. Specifically, home savings increased by an average of 26% among participants, and 18 people successfully moved into the higher credit score categories. The pilot was targeting a specific group of 42 young people, most of whom were single mothers, homeless, malnourished, or incarcerated youth.

DETROIT MOMS GET INTO ‘NO STRINGS’ CASH PLAN FOR NEW MOMS

Austin became the first major city in the Lone Star State to fully fund its certified revenue driver, using $1.1 million in taxpayer funds and $500,000 in philanthropic donations. (Brandon Bell/Getty Images)

One of the participants, identified only as Marina, received $750 a month when the program was launched last year. She said the unrestricted funds allow her to pay directly for her children’s essential health care, vision, and dental needs, as well as youth sports registration fees.

Despite local praise, the program is facing an uphill battle across the country as conservative lawmakers look to dismantle the GBI model. Critics and free market experts warn that unearned income programs discourage labor participation, fuel inflation, and create long-term debt for taxpayers.

In addition, these programs face difficult legal hurdles. In Texas, Republican Attorney General Ken Paxton has led successful legal challenges against guaranteed income models, arguing that using public tax dollars for direct funding violates the state constitution’s “gift clauses” that prohibit the redistribution of public funds to individuals without direct public return. Similar legislative bans on GBI programs have gained traction in several red states.

CHICAGO SUBBURB REPARATIONS SAY ‘AFFORDABILITY PRESSURES’ AS BLACK PEOPLE WINDLES

Albuquerque, New Mexico uses taxpayer funds for a guaranteed income program and recently provided an update on its results. (GETTY)

Undeterred by the changing legal landscape, both Rogers and Keller said they intend to secure recurring municipal funding to turn Albuquerque’s driver into city government permanently.

“This is the government’s job, to remove barriers and give people hope,” said Rogers.

Albuquerque officials did not respond to Fox News Digital’s request for additional comment on the long-term financial impact of the plan.

CLICK HERE FOR THE FOX NEWS PROGRAM