Opportunity Overview
Open now. The Illinois Department of Commerce and Economic Opportunity (DCEO) has opened IGI – New Stores in Food Deserts Round 3, Funding Opportunity Number FY27-1, under CSFA 420-35-3295. DCEO lists an application period from September 10, 2026 through December 9, 2026 at 5:00 PM. The public DCEO page does not separately identify a time zone, so Atlas does not infer one.
Funding
DCEO lists $20.8 million in estimated total program funding, approximately eight anticipated awards, and an award range of $500,000 to $5.2 million. The program uses State funding. The FY27-1 NOFO Supplement requires an applicant contribution equal to at least 25% of total project costs for projects without a pharmacy and at least 15% of total project costs for projects incorporating a pharmacy. Match must be specific, verifiable, available, from non-State sources, and documented with the application; in-kind contributions and costs incurred before receipt and acceptance of the Notice of State Award do not count. Indirect costs are allowed only on operational expenditures, not capital expenditures.
Purpose and Eligibility
The program is intended to address food deserts by supporting establishment of new grocery stores and reimbursing successful applicants for eligible capital and non-capital expenditures. GATA prequalification is required. Eligible applicants include Illinois units of local government and qualifying independent grocers or cooperatives with fewer than 500 employees and no more than four grocery locations, including eligible for-profit and nonprofit structures. Each proposed site must satisfy the current food-desert low-income and low-food-access tests, and the store must meet applicable grocery and fresh-food requirements, derive no more than 30% of revenue from alcohol and tobacco, and prepare to accept SNAP and WIC. The round also expressly permits an optional pharmacy component where the applicant has capacity and demonstrated need; pharmacy inclusion is encouraged but not required and omission carries no penalty.
Application Requirements
DCEO lists the NOFO Supplement, Program Application, Program Application Supplement, Uniform Application, Uniform Budget, Mandatory Disclosure, and Conflict of Interest Disclosure among the application materials. Submission is through DCEO’s SmartSheet application form. DCEO also lists a non-mandatory technical-assistance session for September 15, 2026 at 2:00 PM.
Atlas Analysis
Atlas Opportunity Score: 78/100. This is a substantial Illinois food-access and community-infrastructure opportunity with a large applicant ceiling. The controlling FY27-1 supplement now resolves the core applicant, food-desert, match, and pharmacy rules. Applicant-specific fit still requires a verified operator/site, the correct 25% or 15% match tier, GATA status, project readiness, and a supportable budget.
N9+ Fit Score: 0/100. This program is focused on grocery-store development and food-access infrastructure. Atlas will not force a telehealth or remote physical-examination technology use case into the opportunity.
Next Action
Identify qualifying Illinois grocery operators and food-desert sites, determine whether the project uses the 25% standard match or 15% pharmacy match, and verify GATA status, project readiness, recipient history, and Email Opt-Out status before any outreach. Applicants seeking preliminary eligibility review should submit by November 25, 2026 so DCEO can identify issues by December 2.
Official source: Illinois DCEO – IGI New Stores in Food Deserts Round 3.