Zohran Mamdani Seeks $70 Million For Municipal Grocery Stores Amid Budget Deficit

New York City Mayor Zohran Mamdani wants to allocate $70 million in city funds to launch his proposed network of government-owned grocery stores, The NY Post reported, citing sources familiar with preliminary budget discussions.

The financial line item comes as the administration projects a $5.4 billion budget gap. Earlier this month, Mamdani unveiled a $127 billion preliminary budget for fiscal year 2027, saying, “We inherited a historic budget gap.”

The funding would be directed to the city's Economic Development Corporation (EDC) to identify locations and oversee the construction of five municipally operated grocery stores, one in each borough. It was a key campaign promise of the first-term mayor.

During his campaign, Mamdani, a former Queens state Assemblyman, estimated the rollout of the five stores would cost approximately $60 million. He said the initiative was a publicly funded alternative to private supermarket chains. “It's like a public option for produce,” Mamdani said in a campaign video, arguing that taxpayer dollars should be redirected away from corporate subsidies and toward a city-run food retail network.

The newly proposed $70 million allocation exceeds that earlier estimate. While the Economic Development Corporation confirmed the construction funding, it clarified that the figure does not include the cost of a separate feasibility study tied to the initiative. The agency did not disclose how much that study would cost or when it would be completed.

Questions remain about how the city would manage day-to-day grocery operations. The administration has not yet outlined whether the stores would be staffed by city employees, how supply chains would be managed, or how pricing structures would be determined.

The mayor has said that city-owned grocery stores would not pay property taxes or rent, a strategy he argues would help keep prices low for consumers.

The Economic Development Corporation, a quasi-independent nonprofit tasked with promoting economic growth, would oversee the grocery rollout. The agency has historically led major development initiatives and public-private partnerships across the city. The EDC is currently without a permanent leader, according to recent reports.

The grocery proposal arrives as Mamdani presses Albany lawmakers, including his political ally, Governor Kathy Hochul, to adopt a “tax the rich” framework put forward by the Democratic Socialists of America. The governor has so far resisted the proposal as she prepares for a re-election campaign.