WASHINGTON — The National Association of Convenience Stores is raising concerns about growing penny shortages nationwide as the U.S. Mint halts production of the coin and the Federal Reserve begins winding down distribution.
In early 2025, President Trump ordered the Treasury Department to end the production of pennies, citing costs that exceeded the coin’s face value. While initial reports suggested new pennies would remain in circulation until early 2026, the phase-out has accelerated: the Mint struck its final pennies in June, and the Federal Reserve made its last shipment to coin distribution locations in August.
Existing pennies will continue as legal tender, but shortages are already surfacing and are expected to worsen.
“NACS has raised industry concerns with Congress and the Administration and is advocating for federal legislation to permit the rounding of cash transactions,” said Anna Ready Blom, Strategic Advisor, Government Relations at NACS.
The Federal Reserve this week published FAQs on penny orders and deposits, clarifying that:
- The Fed supplies coins only through banks and credit unions, not directly to businesses.
- Penny inventory is monitored weekly, and distribution will cease once supplies are depleted at a location.
- Acceptance of penny deposits will vary depending on localized inventory.
NACS emphasized that without new pennies, cash transactions will need to be rounded to the nearest nickel; yet, some state and local cash laws prohibit this practice. This creates legal and operational uncertainty for retailers.
“NACS is concerned that retailers and consumers will be caught in the middle without clear federal guidance,” Blom said.
NACS says it will continue to press Congress and the Administration for timely action to ensure retailers can continue to serve customers seamlessly.
