Illinois Gov. JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced Thursday more than $26 million in available grant funding through the Illinois Grocery Initiative, the state's latest push to prevent food deserts.

The round includes $20.8 million for the New Stores in Food Deserts Program, $750,000 for the Equipment Upgrades Grant Program and $4.5 million for the newly launched Grocery Rescue Program, which targets grocery stores that have closed within the last year. Applications are open now, 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 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."

Since the program launched in 2024, the Illinois Grocery Initiative has distributed $19 million. That total includes nearly $17 million to entities building eight new grocery stores across the state and $2 million to 14 stores for equipment upgrades. The latest round builds on that record while adding a pathway to reopen stores that have recently closed.

The Grocery Rescue Program supports reopening stores that closed within 12 months of the program's launch. DCEO designed it to prevent long-term food access loss in low-access tracts and stop the formation of new food deserts. Funding can cover store acquisition, repair, property and equipment refurbishing, and some first-year operating costs.

Qualified applicants are independent grocers or cooperatives with fewer than 500 employees and no more than four grocery locations that closed within 12 months. Store owners or property owners associated with the prior closure are not eligible.

The New Stores in Food Deserts Program funds new grocery stores in census tracts meeting criteria for low income and low access to fresh food. This round adds a pharmacy component. Grants cover construction and renovation costs plus operating expenses such as employee wages, utility costs and initial food inventory for the first two years after opening.

The Equipment Upgrades Grant Program extends the state's support for energy-efficient equipment upgrades at existing grocery stores, with priority for stores in food-insecure communities. The program aims to strengthen existing stores and preserve fresh food access in those areas.

With $26 million now on the table and a competitive application process underway, independent grocers across Illinois have a new window to expand, upgrade or reopen stores in the communities the state has identified as most at risk.