Mayor Zohran Mamdani’s pledge to open five publicly subsidized grocery stores in New York City is quickly becoming a reality. On July 27, 2026, Mamdani announced details of the plan, including a 30 percent discount to market prices of a “core basket” of healthy groceries such as fruits, vegetables, eggs, and milk; a request-for-proposals process to select private sector operators; and an operating subsidy that the city will use to fund the lower prices.

According to estimates by the New York City Economic Development Corporation (NYC EDC), for which I am currently consulting, shoppers could save over $1,000 a year on groceries. Two locations have already been announced, including sites in the Bronx and East Harlem. City council has approved $70 million in capital funds for store build-outs, while operational funds are still being decided. The city’s annual budget is over $125 billion; the funds needed to open and run NYC Groceries are less than one-tenth of 1 percent of that budget, a literal rounding error.

According to a 2025 poll, support for the public grocery idea in the city is overwhelming. A coalition including trade unions, community groups, cooperative businesses, and food security advocates has been working closely with the city to plan and implement the idea. The result is an idiosyncratic model that may point the way forward for other cities.