According to a New York Post report, New York City Mayor Zohran Mamdani is proposing $70 million to advance his campaign pledge to open five city-owned grocery stores — one in each borough — even as he warns of a projected $5.4 billion budget shortfall.
According to preliminary budget documents reviewed by sources, the funding would go to the New York City Economic Development Corporation to identify locations and construct the stores. The financial line item has not been previously reported.
The proposal comes as Mamdani presses state leaders to approve his “tax the rich” plan. He has said that without additional revenue from Albany, he would be “forced” to consider raising property taxes by nearly 10% to address what he calls a historic fiscal gap inherited from predecessor Eric Adams.
“We inherited a historic budget gap,” Mamdani said earlier this month while unveiling a $127 billion preliminary budget for fiscal year 2027.
During the campaign, Mamdani — a former Queens state assemblyman and Democratic Socialist — said he could launch five government-owned grocery stores for $60 million. In a social media pitch, he described the concept as “like a public option for produce,” arguing the city could redirect public funds toward operating stores that would not pay property taxes or rent in order to keep prices low.
Critics question the math.
One city source called the new $70 million proposal “ridiculous,” citing the city’s looming deficit. Another Democratic insider criticized what they described as spending on a feasibility study tied to the initiative.
The Economic Development Corporation confirmed the $70 million figure for construction and site development but said it does not include funding for a study. The agency did not specify what such a study might cost or how long it would take.
Mamdani has challenged Gov. Kathy Hochul and state lawmakers to back his tax proposal, though Hochul has resisted broad tax increases as she heads into a reelection cycle.
The mayor has dismissed claims that the grocery initiative is premature, maintaining that the city can operate stores directly and reduce food prices by eliminating rent and property tax costs.
The full operating costs of the proposed stores have not yet been publicly detailed.
More over at The New York Post:
Zohran Mamdani wants to drop $70M on city-run grocery stores — as he claims NYC is broke: sources https://t.co/vDOnTQzKma pic.twitter.com/befHdI26tm
— New York Post (@nypost) February 25, 2026
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