New York City mayor-elect Zohran Mamdani speaks during a press conference in New York City, U.S. December 9, 2025. REUTERS/Kylie Cooper TPX IMAGES OF THE DAY
(New York, New York) – Mayor Zohran Mamdani is proposing a $70 million allocation to launch city-run grocery stores across the five boroughs — even as he warns that New York City faces a multibillion-dollar budget gap and has floated potential tax increases.
According to sources familiar with preliminary budget documents, the funding would go through the city’s Economic Development Corporation (EDC) to identify locations and construct five government-owned grocery stores — one in each borough — a campaign promise Mamdani made while running for office.
The proposal comes as the mayor has cited a projected $5.4 billion budget shortfall and urged state lawmakers to approve a “tax the rich” plan. He has also warned that property taxes could rise if Albany does not act.
A Public Option for Produce
During the campaign, Mamdani described the concept as “a public option for produce,” arguing that city-owned grocery stores could lower prices by cutting out rent costs and property taxes.
The mayor had previously estimated the initiative would cost about $60 million to launch. The newly proposed $70 million would reportedly cover construction costs for the stores, though additional expenses — including a feasibility study and operational costs — have not been publicly detailed.
The EDC confirmed plans for the construction funding but did not specify how much a feasibility study would cost or provide a timeline for the rollout.
Critics Question Priorities
Critics argue the timing of the proposal raises concerns given the city’s fiscal outlook. Mamdani recently unveiled a $127 billion preliminary budget for 2027, while also announcing plans to cut $30 million from library funding.
Opponents say the grocery store initiative lacks clarity on how the city would manage day-to-day operations and whether taxpayer funds would ultimately be needed to subsidize the stores long term.
Supporters, however, say the plan could help combat food deserts and rising grocery prices, particularly in underserved neighborhoods.
Political Pressure Mounts
Mamdani has called on Gov. Kathy Hochul and state lawmakers to approve new tax measures targeting higher-income earners. The governor has shown resistance to the proposal as she faces reelection.
The Economic Development Corporation — a quasi-independent nonprofit often used to advance major city initiatives — would oversee the project. The agency has played a central role in public-private development ventures but operates with less direct oversight than traditional city departments.
City Hall has not provided additional details on how the grocery stores would be staffed, supplied, or sustained financially.
