Salem, Massachusetts, to Give Guaranteed Cash to Low-Income Residents

Salem is joining the list of Massachusetts cities that have introduced programs to give unconditional cash payments to low-income residents, the mayor’s office announced.

The city government and the California-based organization UpTogether are set to select 100 applicants to give $500 per month for one year as part of a study conducted by Salem State University, Mayor Dominick Pangallo said in a statement. 

Another 100 people will be selected to participate in the study as a comparison group and will also be paid for answering questions from the university, WCVB reported. 

“Participants will be able to spend the cash however they want,” the mayor’s office said. 

Pangallo said he hopes the study will lead to more support for other similar programs:

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. We want Salem to be an affordable place for everyone, and a guaranteed income program offers an innovative approach to help achieve that goal. 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.

Pangallo is part of Mayors for a Guaranteed Income, a network of dozens of mayors across the country who support free cash for impoverished individuals and households:

Applications will open for the program on October 28 and run for two weeks or until 350 eligible people apply.

The first payments will be sent out by December 1, officials said.

“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,” added UpTogether CEO Jesús Gerena. 

The program will be funded by a combination of money from the Biden-Harris administration’s American Rescue Plan Act and a private contribution from UpTogether, adding up to $685,000 in total.

The Massachusetts cities of Cambridge, Chelsea, and Worcester have also launched guaranteed income programs within the last three years, according to CBS News. 

In Chelsea, 2,200 “highly food insecure” families were given $400 per month for nine months, though a Harvard Kennedy School analysis found that only 65 percent of the money was spent at places that sell food. 

While Boston has yet to follow suit, progressive Mayor Michelle Wu (D)’s administration said they were “exploring” the prospect of launching a similar program, CBS reported in November 2023.