Gov. Pritzker Announces $26 Million For Illinois Grocery Initiative Grant Program
Latest round of grant funding includes new Grocery Rescue Program
CHICAGO – Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) today announced over $26 million in available grant funding for the Illinois Grocery Initiative. This includes funding for the New Stores ($20.8 million) and Equipment Upgrades Grant Programs ($750,000). Illinois is also launching the new Grocery Rescue Program ($4.5 million), geared toward helping reopen grocery stores that have closed in the last year. Applications are open and grantees will be selected through a competitive Notice of Funding Opportunity (NOFO) process.
“Local grocery stores are the backbone of communities across the state – keeping our people healthy and fed, growing local economies, and keeping our neighborhoods thriving,” said Governor JB Pritzker. “This latest round of funding from the Illinois Grocery Initiative will keep quality, affordable groceries close to home for Illinois families while supporting small businesses across the state.”
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“Investing in grocery infrastructure puts us one step closer to eliminating food insecurity in Illinois,” said Lieutenant Governor Juliana Stratton. “The New Stores in Food Deserts program and the Grocery Rescue program are innovative solutions to combatting food deserts, bolstering small businesses, and fueling local economies.”
“Ensuring Illinoisans have local access to fresh and healthy food is critical to the wellbeing of our State,” said DCEO Director Kristin Richards. “The Illinois Grocery Initiative places these essential resources into communities that currently lack them and also supports small businesses and local economies.”
Since the program’s launch in 2024, the Illinois Grocery Initiative has distributed $19 million in funding, including nearly $17 million provided to entities to build eight new grocery stores across the state, and $2 million to 14 stores to upgrade equipment. The latest round of funding will build upon the progress to date while helping open grocery stores that have recently closed.
Grocery Rescue Program
The new Grocery Rescue Program will support the State’s efforts to reopen stores that have closed within the preceding 12 months from the program launch. This program is designed to prevent long-term food access loss in low-access tracts, preventing the formation of new food deserts.
Funding can be used for store acquisition, repair, refurbishing property and equipment, and some first-year operating costs. Qualified entities include independent grocers or cooperatives with fewer than 500 employees and no more than four grocery locations that have closed within 12 months. Store owners, or property owners, associated with the prior store which closed are not eligible.
New Stores in Food Deserts
The New Stores in Food Deserts Program funding will support the establishment of new grocery stores in food deserts, which are census tracts meeting criteria for low income and low access to fresh food. This round of funding will integrate a pharmacy component.
These grants will fund construction and renovation costs for new stores, as well as many operations costs, such as employee wages, utility costs, and initial inventory of food, for the first two years after opening.
Equipment Upgrades
The Equipment Upgrades Grant Program funding builds upon the State's efforts to provide funding for energy-efficient equipment upgrades for existing grocery stores, with priority given to those located in food insecure communities across the state. This program is designed to strengthen existing grocery stores and preserve access to fresh food in food insecure communities, in an effort to stop the formation of new food deserts.
“All Illinoisians deserve access to fresh and healthy foods,” said Leader Mattie Hunter (D-Chicago). “The Illinois Grocery Initiative is critical to ensuring this goal becomes a reality. I’m thrilled to see the State’s continued investment in these efforts to prevent food insecurities across Illinois.”
“The Illinois Grocery Initiative has been essential to combating the development of food deserts across the state,” said Senator Doris Turner (D-Springfield). “This next round of funding will build upon the State’s continued efforts to eliminate food deserts and support local grocers, while simultaneously boosting our state’s economy.”
Information for Applicants
- Interested parties are encouraged to reach out to CEO.GrantHelp@illinois.gov for application assistance.
- Prospective applicants can submit program-specific questions to CEO.GroceryInitiative@illinois.gov.
- Applications for the New Stores Grant Program will be accepted until December 9, 2026, at 5:00 p.m.
- Applications for the Grocery Rescue Program and Equipment Upgrades Program will be accepted on a rolling basis.
- To view the NOFO and apply for the grant, please visit the DCEO website.
- DCEO will be hosting Application Workshop and Technical Assistance webinars for each grant program. Interested applicants can register and find more information on the DCEO website.
About the Illinois Grocery Initiative
The Illinois Grocery Initiative provides wrap-around support to local governments and independent grocers opening grocery stores in and those currently operating in food deserts. The initiative includes:
- Providing support for existing grocery stores by offering grant funding for energy-efficient equipment upgrades
- Supporting the establishment of new stores by providing grant funding for establishing new grocery stores in food deserts and reestablishing grocery store locations that have closed within the past 12 months
- Supporting building, renovation, equipment, and operational expenses
- Providing technical assistance to prospective applicants and grantees – including business planning, marketing, financing, supply chain management, and workforce development assistance
- Expanding tax incentive eligibility to grocers, which includes exemption from tax on utilities and building materials
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