Last year, the previous administration announced a plan to modernize the market, replacing four warehouses with two new facilities designed to eliminate the need for the diesel-powered trailers. However, the deal reportedly fell apart due to concerns from produce operators about the new facility's design. Mayor Mamdani has suggested the plan, which was set to receive substantial state and federal funding, is no longer viable.

Despite this, some officials are urging the mayor to reconsider. City Comptroller Mark Levine has called the project "one of the most important economic development projects in New York City," emphasizing the unacceptability of 24/7 diesel trailer operation in a modern city. The South Bronx, a low-income area, already suffers from high rates of respiratory illness, with pollution from the market's operations and nearby expressways contributing to its nickname, "Asthma Alley."

Residents have voiced their concerns about the persistent air quality issues. Some recall developing asthma at a young age and have moved away seeking cleaner air. While acknowledging the mayor's efforts on other initiatives like city-owned grocery stores and affordable housing, some residents remain skeptical about whether private companies will prioritize community health over their financial interests.

Mayor Mamdani has attributed the plan's previous collapse to rushed negotiations by the prior administration. He stated that the current iteration of the project is not moving forward but indicated the city remains committed to electrifying or modernizing parts of the market. Experts suggest revising, rather than abandoning, the plan to leverage accumulated momentum and protect public funds.