The U.S. has approximately 6,500 Food Deserts. These areas are defined as low-income areas over 1 mile (urban) or 10 miles (rural) from a supermarket. In the U.S. it affects 19 million people with limited access to healthy food. Government-run grocery stores, proposed by Zohran Mamdani and backed by Elizabeth Warren, aim to implement this plan. However, food banks already serve many of these areas. Which approach—grocery stores, food banks, or a hybrid of both—is more viable? Moreover, how much would each cost U.S. Taxpayer households? Let’s look at the benefits, detriments, management and ultimately U.S. taxpayer costs.
Benefits of Government-Run Grocery Stores
First, government-run grocery stores could reduce food costs. In food deserts, where 30% of residents face food insecurity, small stores charge 10–37% more. Modeled on military commissaries (180 in the U.S including territories) these stores could sell produce 20–30% cheaper, saving SNAP users $50–$100 monthly. With SNAP’s $113 billion budget supporting 42 million people, this boosts nutrition without raising costs. Additionally, these stores could cut $150 billion in diet-related healthcare costs by 5–10% ($7.5–$15 billion yearly), easing public budgets. They could also generate $50–$100 million per state in economic activity through SNAP spending.
Detriments of Government-Run Grocery Stores
However, startup costs are quite significant. One store costs $12 million, so 100 stores could cost taxpayers $1.2 billion, or $9.23 per U.S. household (130 million households). Annual subsidies of $100–$200 million ($0.77–$1.54 per household) might be needed to keep prices low, risking budget strain if stores fail. The Healthy Food Financing Initiative saw 20% of funded stores close, losing $60–$80 million ($0.46–$0.62 per household). Shoplifting (2–3% revenue loss) and competition from chains like Walmart could reduce viability.
Management of Stores
City economic development departments or state agriculture offices would likely manage these stores, as seen in St. Paul’s city-run store. The USDA could oversee federal funding and SNAP compliance, with nonprofits handling logistics and local staffing for community relevance.
Banks
Food banks operate in many food deserts, with Feeding America’s 200 banks serving urban and rural low-income areas. In Memphis, mobile food banks reach food deserts, but rural areas have less access, with only 39.6% of Hawaii’s desert markets accepting SNAP. 42 million people deepened on Food Banks to provide free food.
Taxpayer Cost Estimates per U.S. Household
Grocery Store-Only:
Opening 100 stores costs $1.2 billion upfront ($9.23 per household) and $100–$200 million annually ($0.77–$1.54 per household). Scaling to 1,000 stores would cost $12 billion initially ($92.31 per household) and $1–$2 billion yearly ($7.69–$15.38 per household).
Food Bank-Only:
Expanding Feeding America’s network costs $15–$30 million annually ($0.12–$0.23 per household), with a one-time $100–$200 million for infrastructure ($0.77–$1.54 per household) equaling $1.87 or less. .
Hybrid Approach:
A $500 million pilot for 20 grocery stores ($240 million, $1.85 per household) and food bank expansion ($260 million, $2 per household) totals $3.85 per household upfront, with $50–$100 million annually ($0.38–$0.77 per household).
The Bottom Line: Costs To The U.S. Taxpayers Household:
State owned Grocery stores cost $9.23 (100 stores) to $92.31 (1,000 stores) upfront, $0.77–$15.38 annually;
Hybrid costs $3.85 upfront, $0.38–$0.77 annually;
Food Banks cost $0.77–$1.54 upfront, $0.12–$0.23 annually. www.theatlantic.com As you can see, Food banks are the most cost effective for relief at $1.87 or less per household. Do you think tweaking the system we have to provide even more nutritional food is a better solution?
