SALEM, Mass. — A new federally-funded program in Salem will give $500 a month to 100 residents for one year to spend “however they want” in an effort to address poverty in the area, city officials announced Tuesday.
The pilot program, called “Uplift Salem,” was described by city officials as “a guaranteed income pilot” that will be evaluated by two Salem State University faculty members.
“Participants will be able to spend the cash however they want,” city officials said in a news release.
The total cost of the pilot is $685,000. The program is funded through the federal American Rescue Plan Act, and also through a California-based nonprofit, UpTogether, which aims to address poverty.
UpTogether is managing the pilot program, officials said.
“I’m excited to announce the launch of Uplift Salem, our guaranteed income pilot program to help directly address poverty in our community and contribute to the growing evidence from across the nation about the efficacy of these types of initiatives,” Salem Mayor Dominick Pangallo said in a statement.
“We want Salem to be an affordable place for everyone, and a guaranteed income program offers an innovative approach to help achieve that goal,” Pangallo said. “Hopefully, the outcome of this year-long effort will be to add to the momentum for greater state and federal support for these programs and, most importantly, to lift up some of our most vulnerable neighbors here in Salem.”
Eligible participants must reside in Salem, including unhoused residents who spend most of their time in Salem, and have household or family incomes at or below 100% of the federal poverty level based on household size.
Applications will be open at that website starting on Oct. 28 and will remain open for two weeks or until 350 eligible applications have been received, officials said.
Pilot members will be randomly selected from eligible applications, with members receiving their first payments by Dec. 1.
Residents can get more information about the program at the city’s website.
Guaranteed income pilots and other direct cash initiatives have taken off across the country, as states and municipalities look for new ways to address poverty, city officials said.
According to UpTogether, data shows that recipients spend most of the funds on basic needs and experience greater financial stability as a result of these programs.
“We know guaranteed income works to help families achieve economic mobility. They know what’s best for their families and can be trusted to make decisions that move them ahead,” UpTogether CEO Jesús Gerena said in a statement.
Two Salem State University researchers, Thomas Pineros Shields, a professor in the school’s politics, policy and international relations department, and Sara Moore, a sociology professor, will evaluate the impact of the cash payments on participants, compared with another group of 100 individuals.
Both groups will be compensated by UpTogether for participating in the study, officials said.
“The City of Salem will utilize the learnings from this initiative to consider new ways of addressing poverty in the community and to add to the greater body of scholarship examining the impacts from such programs,” city officials said in their statement.
Founded in 2001 in Oakland, California, UpTogether has distributed more than $210 million dollars to more than 200,000 individuals and families since 2020, according to the nonprofit.
This is a developing story. Check back for updates as more information becomes available.
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