IGI - New Stores in Food Deserts Round 3 supports local governments, independent grocers, and cooperatives in developing and opening grocery stores to improve fresh-food access in Illinois food deserts.
Funder: Illinois Department of Commerce and Economic Opportunity
Due Dates: November 25, 2026 (Early eligibility review) | December 9, 2026, 5:00 PM (Full application)
Funding Amounts: $500,000–$5.2 million per award; $20.8 million total; expected performance March 1, 2027–June 30, 2030
Summary: Competitive reimbursement grants support new grocery stores in Illinois food deserts, including capital costs and initial operations.
Key Information: Applicants must document a non-state match of 25% of total project costs, reduced to 15% for projects incorporating a pharmacy.
The Illinois Department of Commerce and Economic Opportunity (DCEO) administers this third round of New Stores in Food Deserts through the Illinois Grocery Initiative. The program addresses food insecurity by helping establish sustainable grocery stores in census tracts with low incomes and limited access to fresh food. It supports eligible capital and non-capital expenditures, including property development, equipment, and working capital for the first two years of operations.
Projects may incorporate a pharmacy where community needs and the applicant’s operational capacity support one. Pharmacy participation is optional: it does not increase the maximum award, receive bonus points or a funding set-aside, or affect eligibility for projects without pharmacies.