Sherrill Reintroduces Bill to Lower Grocery Costs in New Jersey
WASHINGTON, DC — Today, Representative Mikie Sherrill (NJ-11) reintroduced her REDUCE Food Prices Act, legislation that will lower grocery bills for New Jersey families. Rep. Sherrill introduced the bill alongside Rep. Jahana Hayes (CT-05).
The REDUCE Food Prices Act is the second pillar in Rep. Sherrill’s Lowering Costs for New Jersey Families Agenda, a legislative package she is introducing to make life more affordable and put money back into New Jerseyans’ pockets. Last week, she introduced the first pillar of the agenda — the INCREASE Housing Affordability Act — which supports commercial-to-residential building conversions to help boost the supply of affordable housing and lower costs for families.
“We have an affordability crisis in New Jersey — and I hear from far too many families who are struggling to keep up with rising prices at the grocery store. I’m taking action by reintroducing my REDUCE Food Prices Act, which will help local, independent grocers keep their doors open, increase competition, and drive prices down for New Jerseyans. No family should ever have to choose between putting food on the table, filling a prescription, or making rent. This legislation is an important step to putting money back in New Jerseyans’ pockets so we can not just get by — but get ahead,” said Rep. Sherrill.
“Families should not struggle to find affordable, nutritious food because large grocery stores raise prices, close locations, and merge with competitors to deliver higher profits,” said Rep. Hayes. “By creating and expanding tax incentives for small retail grocers, the REDUCE Food Prices Act will support increased competition in areas of need, keep food competitively priced, and increase food access in underserved communities.”
Sherrill’s REDUCE Food Prices Act has earned endorsements from a number of consumer advocacy organizations, including the Consumer Federation of America, Consumer Action, and Public Citizen.
Food prices have increased significantly for families since the COVID-19 pandemic, with grocery prices rising by over 27 percent from January 2020 to December 2024. Additionally, in 2024, the four largest food retailers accounted for more than 50 percent of national grocery store sales – a marked increase over the past two decades. That has resulted in higher prices for consumers.
One study found that increased food retail concentration at the local level is associated with large increases in food prices, while another found both that market concentration among food retailers is strongly linked to higher prices and that food price inflation declines when new businesses enter a concentrated market dominated by traditional supermarkets.
The REDUCE Food Prices Act would provide tax incentives for the establishment and operation of small food retail businesses in areas with high food retail concentration and low levels of competition. Specifically, it would create and expand tax incentives for small businesses in the food retail industry that operate in counties where the Herfindahl-Hirschman Index – a measure of industry consolidation by the Economic Research Service of the U.S. Department of Agriculture – is at or above 1,400, indicating that there is moderate to high market concentration in that county’s retail food sector.
For these businesses, the legislation increases the Rehabilitation Tax Credit for investments in the restoration and re-use of historic buildings, the Work Opportunity Tax Credit for the hiring and employment of certain workers, Bonus Depreciation for the purchase of certain investments in new or upgraded equipment or property, and the Qualified Business Income Deduction for certain businesses’ pass-through income.
Also for these businesses, the bill creates a New Food Retail Business Tax Credit equal to 15 percent of a small food retailer’s capital investment in its first three years of operation.
Last year, Rep. Sherrill visited Compare Fresh in Trenton to introduce this legislation and speak directly to supermarket employees and shoppers about the challenges they were facing trying to afford groceries. Additionally, Sherrill has fought for the Shrinkflation Prevention Act – legislation that will prevent corporations from deceptively selling less of a product without lowering the price accordingly.
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