Gov. JB Pritzker and the Illinois Department of Commerce and Economic Opportunity announced over $26 million in available grant funding for the Illinois Grocery Initiative on Thursday.

According to the governor's office, the initiative aims to provide wrap-around support to local governments and independent grocers opening or operating grocery stores in food deserts. The initiative has distributed $19 million in funding since its launch in 2024, including nearly $17 million to build eight new grocery stores and $2 million to 14 stores to upgrade equipment.

“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.”

The funding benefits the New Stores in Food Deserts and Equipment Upgrades Grant Programs as well as the Grocery Rescue Program, which the state launched Thursday.

The initiative provided $20.8 million in available grant funding to the New Stores in Food Deserts Program, which supports the establishment of new grocery stores in food deserts. The governor's office defines food deserts as census tracts meeting criteria for low income and low access to fresh food, with this round of funding integrating a pharmacy component.

According to Pritzker's office, the 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.

The Equipment Upgrades Grant Program received $750,000 in available grant funding, which will build upon the state's efforts supporting energy-efficient equipment upgrades for existing grocery stores.

According to the governor's office, priority will be given to those located in food insecure communities across the state, as the program aims to strengthen existing grocery stores and preserve access to fresh food in food insecure communities, stopping the formation of new food deserts.

The initiative provided $4.5 million in available grant funding to the new Grocery Rescue Program. According to the governor's office, the program aims to support the state's efforts to reopen stores that have closed since September 2025. By preventing long-term food access loss in low-access tracts, the program intends to prevent the formation of new food deserts, Pritzker's office stated.

Funding can be used for store acquisition, repair, refurbishing property and equipment as well as 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 or property owners associated with the prior store which closed are not eligible, Pritzker's office stated.

Pritzker announces $26M in grants to support independent grocery stores, combat food deserts