The United States is currently experiencing the beginnings of a penny shortage, as production of the one-cent coin winds down and existing supplies dwindle. Retailers and banks across the country say the strain is already being felt in daily cash transactions.
In early 2025, the U.S. Treasury placed its final order for penny blanks and announced it would cease new penny production by 2026, citing unsustainable costs.The coin now costs nearly 3.7 to 3.9 cents to mint, making each new penny a net loss.
As distribution networks dry up, the Federal Reserve has begun curtailing penny shipments in some regions. In response, retailers such as convenience stores and gas stations are already implementing “rounding rules” — adjusting cash transaction totals to the nearest nickel until a legislative solution is in place.
Industry trade groups, including the National Association of Convenience Stores, are urging Congress to pass a national law permitting rounding for cash purchases. The groups warn that existing state and local cash-transaction laws may conflict with rounding practices, particularly in programs like SNAP or in jurisdictions with strict pricing statutes.
Without swift legislative action, many small retailers say they’ll be forced into awkward decisions: refuse pennies outright, absorb rounding losses, or risk violating local cash-handling laws.
Sources & Links:
- Convenience
- https://www.13abc.com
- socsci.uci.edu
- Patch
- Reuters
- People.com
- AP News
- Financial Times
- Business Insider
- en.wikipedia.org
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