Candidate Proposes Funding City-Run Grocery Stores Using Non-Existent Tax Money

Successful primary candidate Zohran Mamdani, a Democratic socialist and Queens assemblyman, suggests shifting funds from private grocery subsidies to establish city-operated grocery stores focused on providing affordable prices. He claims that around $140 million allocated over 12 years for support to private supermarkets through the City FRESH program is available for his plan.

However, this figure actually represents the total amount invested into NYC’s economy via the program, not direct subsidies to supermarkets. Only about $30 million in tax breaks have been distributed to participating stores during that period, benefiting 27 grocery outlets aimed at alleviating food deserts across the city.

Mamdani envisions launching five government-run stores—one in each borough—that would be free from rent and property taxes, costing roughly $60 million overall. He argues this approach would be more cost-effective than current subsidies, which he describes as ineffective, and would be funded partly by an additional 1% tax on the ultra-wealthy.

In a campaign video, Mamdani stated his goal to redirect funds toward city-owned stores whose mission is lowering prices, contrasting this with subsidies to large private chains. He criticized existing programs, suggesting they fail to address the root issues in food accessibility.

Countering Mamdani’s proposal, many grocery owners oppose city-run stores, asserting they would harm small businesses. For example, John Catsimatidis, owner of Gristedes, warned that city-operated supermarkets, which are exempt from rent and taxes, could force private stores out of business, arguing city management lacks the expertise to run grocery operations efficiently.