Budapest Secures $1M Grant to Tackle Food Waste & Rising Costs

  • 27 Feb 2026 8:15 AM
Budapest Secures $1M Grant to Tackle Food Waste & Rising Costs
Budapest has been named a winner in the Bloomberg Philanthropies 2025-2026 Mayors Challenge, securing USD 1 million and technical support to launch a pioneering urban food distribution model.

The initiative, centered around a new Capital Processing Center, aims to rescue the staggering amount of unsold produce from the city’s municipal markets. Currently, up to 135,000 tons of fresh fruit and vegetables go unsold every year in markets operated by the Budapest Metropolitan Municipality.

Addressing the Cost-of-Living Crisis

The project comes at a critical time for residents. Mayor Gergely Karácsony noted that food prices in the capital have surged by 81% over the last six years — the sharpest increase in the European Union. This inflation has made providing healthy, varied meals in public catering increasingly difficult.

The new program seeks to bridge the gap between waste and want by:

Processing Surplus
: Transforming edible, unsold produce into ready-to-use or partially prepared ingredients.

Supporting Social Institutions: Distributing this food to nearly 20 nursing homes and various social facilities.

Boosting School Meals: Assisting the Catering Service Management Organization (ÉSZGSZ), which provides over 1.7 million meals annually to 16,000 students across 100 kitchens.

A Global Innovation Leader

Budapest was selected from a competitive pool of global cities, joining 23 other winners including Barcelona, Toronto, and Rio de Janeiro.

Over the next two years, the city will receive dedicated resources to scale this model, aiming for a measurable improvement in the quality of life for its most vulnerable residents while reducing the environmental impact of food waste.
 

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Budapest Wins USD 1m in Bloomberg Philanthropies Mayors Challenge

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