To counter food deserts, Pritzker awards $10 million in new grants for local grocery stores in Illinois

Governor JB Pritzker joined the Illinois Department of Commerce and Economic Opportunity (DCEO) and local leaders to announce eight awards totaling just over $10 million through the Illinois Grocery Initiative New Stores in Food Deserts Program ($9.6 million) and Equipment Upgrades Grant Program ($600,000) to address food deserts and prevent grocery store closures in Illinois. Grantees were selected through competitive Notice of Funding Opportunity (NOFO) processes.

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 as authorized by PA 103-0561. The initiative has a detailed list of efforts to combat food insecurity across the state that 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. These grants will support building/renovation, equipment, and first-year operational expenses.
• Providing technical assistance to prospective applicants and grantees. Technical assistance will include business planning, marketing, financing, supply chain management, and workforce development assistance as needed.
• Expanding tax incentive eligibility to grocers which includes exemption from tax on utilities and building materials.
• Commissioning a Grocery Initiative Study to explore the many factors that lead to the current circumstances regarding food insecurity.

The New Stores in Food Deserts Program awards will support the establishment of new grocery stores in food deserts as defined by the Illinois Grocery Initiative Act. This funding will support construction and renovation costs for new stores, as well as many first-year operations costs, such as employee wages, utility costs, and initial inventory of food.

After providing approximately $6.9 million through Round I of the Illinois Grocery Initiative New Stores Grants, DCEO opened Round II in October of 2024. Applicants were selected based on various requirements including: ​

• Must be located in a food desert,
• Must earn less than 30% of revenue from alcohol and tobacco sales,
• Must accept SNAP and WIC, and
• Must contribute to diversity of fresh foods available in community.

Equipment Upgrades Grant Program

The Equipment Upgrades Grant Program awards will support 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.

After providing $1 million through Round I of the Illinois Grocery Initiative Equipment Upgrades Grant Program, DCEO opened Round II in January of 2025. This is a rolling grant opportunity which will remain open until December 15, 2025, or until funding is exhausted. ​ Applicant qualifications include independent grocers or cooperatives with fewer than 500 employees and no more than four grocery locations.

“When I signed the Illinois Grocery Initiative into law the vision we had in mind was reducing costs, fighting food insecurity, and boosting the local economy,” said Governor JB Pritzker. “This $10 million investment will go directly toward construction and renovation of quality, affordable grocery options in neighborhoods across the state. From Champaign to Marion to Venice, we’re fighting food insecurity while investing directly into the lifeblood of our economy, supporting farmers, small businesses, and working families.”