Delaware Grocery Initiative and First State Food System Grant Program

The Delaware Grocery Initiative and First State Food System Program (DGI/FSFSP) is a state-led grant opportunity designed to enhance food access and supply chain resilience in Delaware. Relaunched for 2026 with $700,000 in available funding, the program is managed by the Delaware Division of Small Business (DSB) in partnership with the Delaware Council on Farm & Food Policy and State Senator Darius Brown. The program supports efforts to combat food insecurity by directing resources to underserved communities, including those already classified as food deserts and areas at risk of becoming so. The primary objective of the DGI/FSFSP is to expand access to healthy, culturally diverse foods across Delaware. It does this by funding a range of eligible food businesses and operations that form critical links in the food supply chain. These include farmers and food producers, small and independent grocery retailers, food banks, food pantries, soup kitchens, and related distribution, storage, processing, and transportation entities. The program is open to retailers such as cooperative groceries, neighborhood markets, restaurants, food trucks, and farmers markets, as well as operations like food prep facilities and commercial kitchens. Awarded funds may be used for a variety of purposes that contribute to the strengthening of local food systems. These include operational costs, capital expenses, equipment purchases, and other projects that aim to increase supply chain capacity or build stronger collaboration among community food stakeholders. The 2026 iteration of the program features a scaled funding model, aligned with the format used in the Fall 2025 EDGE Grant Competition, allowing for more flexible and tiered support based on the scope and scale of proposed projects. Applicants are required to submit their proposals electronically through the Division of Small Business Portal. Before accessing the application, users must first create an account on the platform. This account setup facilitates faster fund disbursement in the event of a successful application. Once registered, applicants can access the application and upload required documents directly via the portal. The program explicitly states that submissions via email will not be accepted. The application period officially opens on February 20, 2026, and closes at 4:30 p.m. on March 20, 2026. A mandatory informational webinar will be held on February 18, 2026, providing potential applicants with details about the program’s updates and offering best practices for successful submissions. Awardees will be notified in late April, and a public announcement of award recipients will take place during the week of May 18, 2026. This initiative represents a continued commitment by the State of Delaware to address food insecurity through strategic investments in grassroots food infrastructure. By targeting a broad yet clearly defined range of food-related businesses and nonprofits, the DGI/FSFSP encourages community-driven solutions to strengthen local economies and food systems.