WASHINGTON — A group of trade associations representing thousands of businesses from Main Streets across the country sent a letter on Tuesday to the leaders of major Congressional banking committees, calling for quick measures to resolve the impending penny shortage.
The U.S. Mint ended production of the penny this summer. The Federal Reserve, which handles coin distribution, is already reporting shortages across dozens of locations, and the problem is expected to worsen as the US approaches the holiday season.
MMR
“These businesses—large and small— must be able to continue their commitment to our communities in ways that are fair to everyone and avoid unintended operational hurdles that are being caused by the rapid loss of the U.S. penny,” the groups wrote. “These are the most immediate needs our members are facing in light of the fundamental changes ignited by the end of production of the penny.”
The letter urges three actions:
- Enact a national law allowing businesses to round cash transactions to the nearest nickel.
- Ensure that such rounding does not violate SNAP regulations.
- Facilitate check cashing at retail locations.
“If these remedies are not addressed in short order, it will be challenging to legally engage in cash transactions with customers in growing swaths of the country,” the letter warned.
The Retail Industry Leaders Association (RILA), representing the nation’s largest retailers, has urged congressional leaders to adopt a bipartisan approach to achieve a swift resolution.
“Retailers are key partners with our communities, whether that is through the SNAP program or serving the unbanked. Without immediate remedies from the Department of Treasury our ability to provide for our customers will be limited,” said Austen Jensen, RILA’s senior executive vice president of public affairs. “We look forward to working with congressional leaders to swiftly avert this looming crisis.”
The letter was signed by the FMI – The Food Industry Association, Merchant Advisory Group, National Association of Convenience Stores, National Grocers Association, National Restaurant Association, National Retail Federation, NATSO, Representing, America’s Travel Centers and Truck Stops, Retail Industry Leaders Association, and SIGMA: America’s Leading Fuel Marketers.
