Bill
SB 3426
Expands the Grocery Initiative to boost access to healthy foods via brick-and-mortar, mobile, and online markets plus tech upgrades and targeted grants.
Title: GROCERY-ONLINE MARKETS
Purpose
- Expands the Grocery Initiative Act to broaden access to healthy foods in food deserts and areas at risk of becoming food deserts.
- Adds new grant and financial assistance opportunities for mobile farmers markets and online farmers markets.
- Authorizes the Department of Commerce and Economic Opportunity (DCEO) to provide grants for technology upgrades, including software and point-of-sale systems.
Key Provisions
1) Expanded Definitions (Sec. 5)
- Department: Illinois Department of Commerce and Economic Opportunity (DCEO).
- Food desert: Updated criteria defining areas with high poverty and limited access to grocery stores, including rural and urban tract standards and rules for designation using Department-approved criteria.
- Grocery store: Specifies criteria for a grocery store to qualify (primary grocery focus, limit on tobacco/alcohol revenue, NAICS code 445110, acceptance of SNAP/SNAP-ED benefits, and sale of a broad range of perishable foods).
- Mobile farmers market: Defined as a farmers market that operates from a movable vehicle or trailer and sells directly to end consumers.
- Online farmers market: Defined as an online marketplace primarily sourcing from Illinois farmers with delivery or pick-up options.
- Rural tract / Urban tract: Classifications used to assess access to groceries.
- Not-for-profit corporation, cooperative, and local governmental unit definitions retained or clarified.
- Other terms clarified to support program scope (e.g., food desert designation criteria by rule).
2) Grocery Initiative Grants and Financial Support (Sec. 15)
- Establishes the Grocery Initiative to expand access to healthy foods in food deserts and at-risk areas.
- Eligible recipients: Independently owned for-profit grocery stores, cooperative grocery stores, not-for-profit grocery stores, mobile farmers markets, online farmers markets, and grocery stores owned/operated by local governmental units.
- Administration: DCEO may contract or provide grants/other financial assistance to administer the program; can set eligibility limits by rule (e.g., revenue, employees, or facility size).
- Funding priorities: Grants/loans prioritized based on poverty rates, income, geographic diversity, local ownership, surrounding access to grocery stores, and other Department-determined factors.
- Eligible uses for grants and loans (selected items):
1) Market/site feasibility studies, promotional materials, marketing.
2) Salaries and benefits for workers.
3) Rent or down payment to acquire a facility.
4) Purchase of ownership as part of establishing a new grocery store.
5) Capital improvements, renovations, land acquisition, and equipment purchases.
6) Technology upgrades, including software and point-of-sale systems.
7) Other eligible costs as determined by the Department.
- Additional provisions:
- The Department may provide grants for equipment upgrades for existing stores or markets, with a cap of no more than 20% of total program funding allocated to equipment upgrades.
- Equipment upgrades should emphasize energy-efficient equipment.
3) Eligible Projects and Outcomes
- Projects may include establishing new grocery stores, expanding existing ones, or introducing mobile and online markets to improve access to healthy foods in underserved areas.
- Technology enhancements (POS systems, software) are explicitly funded to support modern grocery operations and broaden access.
Who Is Affected
- Targeted populations: Residents of food deserts and areas at risk of becoming food deserts in Illinois.
- Eligible entities:
- Independently owned for-profit grocery stores.
- Cooperative grocery stores.
- Not-for-profit grocery stores.
- Mobile farmers markets.
- Online farmers markets.
- Grocery stores owned/operated by local governmental units.
- Department of Commerce and Economic Opportunity as the administering agency.
Procedural and Timeline Aspects
- Introduced: February 4, 2026.
- Assigned to Appropriations and subsequently to relevant committees (as of action history):
- February 4, 2026: Filed and read.
- February 17, 2026: Assigned to Appropriations.
- March 13, 2026: Rule 2-10 Committee Deadline established (April 24, 2026).
- April 24, 2026: Rule 2-10 Committee/3rd Reading Deadline established (May 15, 2026).
- This flow indicates SB 3426 is moving through the committee process with a potential May 2026 consideration deadline, contingent on appropriations and committee action.
Notes
- All provisions are subject to appropriation; funding levels and authorized programs depend on enacted state budgets.
- The bill builds on the existing Grocery Initiative Act (P.A. 103-561, eff. 1-1-2024; updated by P.A. 103-957, eff. 1-1-2025) by explicitly including mobile and online markets and by enabling technology-focused investments.
Impact Overview
- Aims to reduce food deserts by expanding access points (brick-and-mortar, mobile, and online) and by supporting local ownership.
- Encourages modernization of grocery operations through technology upgrades.
- Promotes energy-efficient capital investments and targeted funding based on need and geographic diversity.
Compiled from official sources — confirm details with the bill’s official record.
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