The Illinois Grocery Initiative, spearheaded by the Illinois Department of Commerce and Economic Opportunity (DCEO), seeks to address food insecurity in food deserts through the establishment of new grocery stores. With $11 million in state funds available for the second round, this initiative aims to make 5 to 8 awards ranging between $150,000 and $2.4 million per project. Eligible entities, including local governments, independent grocers, and cooperatives with no more than four locations and fewer than 500 employees, are encouraged to apply by December 2, 2024. Projects must focus on creating grocery stores within food desert census tracts and meet specific operational criteria, such as offering unprocessed fresh foods and being prepared to accept SNAP and WIC benefits.

Key services eligible for reimbursement under the grant include land acquisition, site development, construction, and first-year operating expenses like wages and utility costs, but exclude items unrelated to fresh food provision, such as video poker machines or cleaning supplies for resale. Awarded projects are expected to demonstrate a 25% match of non-state funds, which may include local municipal contributions, federal funds, or private investments. Additionally, indirect costs are only allowable for operational expenses, not for capital expenses, underlining the initiative's focus on community accessibility to fresh food rather than on administrative costs.

Applications will be scored on a 100-point scale, with considerations such as the poverty rate in the census tract, distance from existing grocery stores, and the level of community support. Each applicant must provide a business plan, scope of work, and a budget aligned with the project's objectives. At least two letters of support are required, with one from an elected official in the project area. Applicants may submit only one application per round, and successful applicants from previous rounds are eligible to reapply in future funding rounds.

The program's award period begins on April 1, 2025, and will conclude on December 31, 2026. DCEO will conduct a merit-based review and issue Notices of State Award (NOSA) to successful applicants, initiating the grant agreement phase. Grantees are subject to additional state requirements such as environmental reviews and compliance with the Prevailing Wage Act, Business Enterprise Program, and Illinois Works Jobs Program Act. Reporting requirements include quarterly performance and financial updates, as well as a final closeout report.

DCEO is partnering with Chicago State University and Western Illinois University to offer technical assistance to applicants, reinforcing support for the initiative’s goals to alleviate food scarcity and foster community well-being in underserved areas.