If Trump Won’t Lower Grocery Prices – We Will, NJ Democrats Say

NEW JERSEY — Donald Trump pledged that he would “immediately” lower grocery prices if he was elected while campaigning against Joe Biden and Kamala Harris. Now – with the president acknowledging that it may be harder than he thought to keep that promise – two Congress members from New Jersey say they have their own plans to help U.S. residents save money at the supermarket.

Rep. Mikie Sherrill (NJ-11) is pitching federal tax breaks to help small grocers start businesses, hire workers and increase competition in areas with “high corporate consolidation.”

Meanwhile, Rep. Josh Gottheimer (NJ-5) wants the U.S. Department of Agriculture (USDA) to appoint a special investigator to “strictly enforce” price-fixing laws for the meat packing industry.

Both Democrats are running to replace New Jersey Gov. Phil Murphy in 2025. Read More: Governor Who? NJ Voters Murky On Candidates For 2025, Poll Says

Experts have suggested that some ways Trump could help to lower supermarket prices include cracking down on price gouging, helping smaller businesses to compete against mega-chains, and increasing oil production.

Other experts have pointed out that proposed Republican cuts to federal programs like the Supplemental Nutrition Assistance Program (SNAP) – formerly known as “food stamps” – would make it harder for millions of low-income households to afford groceries. Read More: Trump Tax Cuts: Win Or Loss For New Jersey?

MIKIE SHERRILL: REDUCE FOOD PRICES ACT

Earlier this week, Rep. Sherrill and Rep. Jahana Hayes of Connecticut reintroduced the “Reduce Food Prices Act” in the U.S. House of Representatives.

If it becomes law, the federal bill would provide tax breaks for small food retail businesses in areas with “high food retail concentration” and low levels of competition.

“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,” Sherrill said.

Here’s how the bill would work:

“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.”

According to Sherrill’s office, 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.

“No family should ever have to choose between putting food on the table, filling a prescription, or making rent,” she said.

• See Related: The U.S. Food Industry Is Giving This NJ Senator An Upset Stomach

JOSH GOTTHEIMER: ‘STEALING FROM OUR FAMILIES’

Rep. Gottheimer said he has a three-point plan to attack grocery prices, which includes two new bills.

Here’s what the congressman is proposing, according to his office:

PRICE-FIXING – “Gottheimer is introducing new legislation — the Meat and Poultry Special Investigator Act — that will direct the U.S. Department of Agriculture (USDA) to appoint a special investigator to strictly enforce price-fixing laws for the meat packing industry and do everything they can to encourage new meat producers to enter the market. Gottheimer’s bill would help create much-needed competition in the meat and poultry industry, strengthen the food supply chain, and lower food prices for Jersey families.”

BIRD FLU – “Gottheimer is calling on President Trump to immediately reverse his decision to halt all communication at the CDC on the recent Bird Flu outbreak that is driving costs up for families … Gottheimer demands federal agencies restore communication with grocers, farmers, and producers and calls for a coordinated government response to help contain and solve this outbreak.”

MAKE A PLAN – “Gottheimer is introducing the Lower Grocery Prices Act — a bill that will require the federal government to create a comprehensive national plan to combat high prices and deliver critical relief to families struggling with everyday costs.”

Citing stats from the U.S. Department of Labor, the congressman said egg prices are up 37 percent from a year ago. Beef prices went up more than 10 percent in 2024, with the price of bacon and breakfast sausage rising 2 percent between November and December.

The U.S. Department of Agriculture expects higher pork and beef prices in 2025 as meatpackers cut back on their production, he added.

“It has become increasingly expensive for our local markets, like this one, to serve our communities – raising the cost for our families to buy groceries or to eat out at the local diner,” Gottheimer said.

“We can't let higher costs just pull up a seat at the kitchen table and steal from our families,” he added.

THE HIGH COST OF EATING: SUPERMARKET PROFITS RISE

Grocery chains have been growing larger than ever over the past several decades, according to a recent analysis by The Washington Post. The traditional grocery store industry has shrunk to the point that a third of U.S. grocery stores are now owned by just four companies: Walmart, Kroger, Albertson’s and Aldi’s (Süd), the fastest-growing supermarket chain in the country.

At the same time, major national chains have been operating at the highest profit margins on groceries in two decades, the White House Council on Economic Advisers said last year. Read More: These Grocery Chains Dominate As Industry Shrinks, New Data Shows

Earlier this week, a group of U.S. Congress members – including two from New Jersey – sent a letter to Trump that pressed him for more action on lowering grocery prices. Signatories included Sen. Cory Booker and Rep. Bonnie Watson Coleman (NJ-12).

Their big question: Are you going to do what it takes to fix the problem?

“During your campaign, you repeatedly promised you would lower food prices ‘immediately’ if elected president,” the lawmakers pressed. “But during your first week of office you have instead focused on mass deportations and pardoning January 6 attackers, including those who assaulted Capitol police officers.”

• See Related: ICE Immigration Raid Shocks New Jersey (5 Things To Know)
• See Related: 46 Jan. 6 Defendants From NJ Pardoned In Trump’s First Official Act

If Trump really wants to lower grocery prices, he would follow the money, the lawmakers said:

“To make food more affordable, you should look to the dominant food and grocery companies that have made record profits on the backs of working families who have had to pay higher prices. These companies often exploit crises like pandemics and avian flu outbreaks as an opportunity to raise prices beyond what is needed to cover rising costs. For example, last year a Kroger executive admitted in federal court that the company raised the price of eggs and milk ‘significantly higher than the cost of inflation’ in the years following the COVID-19 pandemic. In 2023, a federal court found that the country’s largest egg producers had engaged in a price-fixing conspiracy in the mid-2000s. Major beef, poultry, and potato producers have similarly been accused of or admitted to price-fixing.”

“You have tools you can use to lower grocery costs and crack down on corporate profiteering, and we write to ask if you will commit to using those tools to make good on your promises to the American people,” they urged the president.

“If you are indeed committed to lowering food prices, we stand ready to work with you,” the letter continues. “Last year we put forward several recommendations for executive action to lower food prices by encouraging competition and fighting price-gouging at each level of the food supply chain.”

Some of the lawmakers’ suggestions include:

CONTRACTING – “Encouraging the Federal Trade Commission (FTC) and USDA to prohibit exclusionary contracting by dominant firms in the food industry, making it harder for major retailers and food brands to shut out smaller suppliers and drive up prices at smaller stores”

ENFORCEMENT – “Encouraging the FTC to issue guidance on potential violations of the Robinson Patman Act and Section 5 of the FTC Act within the food industry and take enforcement action where merited”

SMALL BUSINESSES – “Working with USDA to increase the number of government contract recipients that are very small businesses and to ensure that government contracting consider the long-term costs of food sector consolidation”

MERGERS – “Helping the Department of Justice (DOJ) and FTC scrutinize, and where appropriate, block mergers and acquisitions in the food and agricultural sectors”

PRICE-FIXING – “Encouraging the DOJ to prosecute actors in the agricultural and food sectors for price-fixing and other anticompetitive behavior”

SUPPLY CHAIN – “Directing the Commodities Futures Trading Commission (CFTC) and FTC to form a joint task force to investigate food price manipulation throughout the supply chain”

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