Retailers Face Penny Shortages, Call for Federal Action

By [ Austen Jensen ]
11/12/2025

Thousands of retail locations across the country are experiencing shortages of one-cent coins, leaving businesses seeking congressional guidance on how to manage cash transactions, according to a recent survey by the Retail Industry Leaders Association (RILA).

Earlier this year, the U.S. Treasury announced plans to end production of the penny, citing cost savings and inefficiencies associated with minting the coin. Production officially ceased this summer, and within weeks, Federal Reserve locations began reporting depleted supplies. As of the second week of November, more than 100 of the 165 coin distribution sites across the country are without pennies.

Retailers recognize the federal government’s decision to discontinue the penny, due to the potential for cost savings. However, the speed of the phase-out and the lack of formal guidance from the administration — and no action from Congress since the shutdown —have created significant challenges for retailers and all businesses that accept cash.

In a RILA survey conducted last week, many of the nation's largest retailers reported widespread shortages. Of the 25 companies surveyed, nearly one-quarter indicated that more than 1,000 of their store locations are currently without pennies. Two-thirds of respondents said they are rounding transactions to the benefit of consumers when pennies are unavailable — a practice that, while fair to shoppers, is costing businesses millions of dollars as small amounts add up across thousands of daily cash transactions.

Many retailers are prepared to adopt rounding practices similar to those used in other countries that have eliminated one-cent coins, rounding cash transactions to the nearest nickel. However, this approach requires consistent national guidance to ensure uniformity and compliance — particularly for retailers that work with government programs such as SNAP. It is also critical to implement a national preemption standard to avoid a patch work of local and state laws that will confuse consumers and impact business operations.

Retailers are calling on the Treasury Department, the U.S. Department of Agriculture, and Congress to issue clear direction that will allow businesses to fully implement rounding policies and provide a smooth transition away from the penny.

America’s retailers are ready to be partners in this effort to modernize the nation’s currency system — but they need thoughtful action and coordinated rules of the road from federal leaders to make it work for consumers and businesses alike.