Funding Cuts Force Closure of Salem’s Only Youth Mental Health Center

The only youth mental health drop-in center in Salem, Oregon, will cease operations due to significant funding cuts. Youth Era, the nonprofit organization responsible for the service, announced it will lay off staff and close The Salem Drop, located at 246 State St. This decision follows a drastic reduction in funding from PacificSource Community Solutions, which cited financial challenges and Medicaid rate shortfalls.

Martin Rafferty, founder and CEO of Youth Era, expressed deep concern about the implications of this closure. In a statement, he remarked, “We’re being asked to do less for kids at the exact moment they need us most.” He further highlighted that Oregon’s position as the state with the worst mental health outcomes in the nation is a result of such funding decisions. According to Mental Health America’s 2025 report, Oregon ranks at the bottom for both youth and adult mental health services.

Youth Era was established in 2009 in Eugene by Rafferty, who experienced homelessness as a child. Since its inception, the organization has provided over 56,000 hours of direct peer support. The Salem Drop, which opened in 2018, offered various activities including meditation, video game competitions, art workshops, and leadership skills training, all facilitated by trained peer support specialists.

The leadership of Youth Era is now urging state officials, local health councils, and alternative funding sources to intervene before the vital services are permanently lost in communities like Salem. Rafferty stressed the urgency of the situation, stating, “The kids we serve don’t get to wait for the funding formula to get fixed. Every month we delay is another month a young person doesn’t get the support that could save their life.”

The closure of The Salem Drop represents a significant blow to the local community, which relies on such resources for mental health support. Rafferty emphasized the organization’s track record of success, stating, “We’ve spent 17 years building something that works. We’ve got the data. We’ve got Oxford backing our outcomes. We’ve got young people alive today because someone was there when they needed help.”

As the situation unfolds, stakeholders and advocates for youth mental health continue to call for immediate action, underscoring that mental health for young people is an urgent concern that requires immediate attention and adequate funding.

Whitney Woodworth, a watchdog reporter for the Statesman Journal, covers city hall and economic development. She can be reached at [email protected] or followed on social media at @whitneywoodworth.bsky.social.