Penny Shortage Hits Cash Registers as U.S. Mint Stopped Making Coins

The U.S. Mint's decision to stop making pennies has led to a shortage of the coin, causing challenges for retailers, especially when it comes to SNAP transactions. The American Bankers Association estimates that most pennies are collecting dust in jars, rather than being in circulation. As a result, the Federal Reserve has started rationing pennies to banks, and over half of the Fed's 170 coin distribution terminals have stopped or will soon stop handling pennies. Retailers are finding it difficult to provide exact change to customers, which is a requirement for SNAP transactions.

Key Takeaways:

• The U.S. Mint has stopped making pennies, with the American Bankers Association estimating that most coins are collecting dust in jars rather than being in circulation.
• The Federal Reserve has started rationing pennies to banks, with over half of the Fed's 170 coin distribution terminals having stopped or will soon stop handling pennies.
• Retailers are struggling to provide exact change to customers, especially in SNAP transactions, which requires charging the same prices as all other shoppers.
• Ten states ban rounding to the nearest nickel, making a solution to the penny shortage more difficult.
• Retailers are urged to request clarity from the federal government on what to do regarding SNAP transactions.
• Giant Eagle, Kroger, Home Depot, Kwik Trip, Love's, and Sheetz are taking measures to address the shortage, such as holding a "Penny Exchange Day" or asking customers to pay with exact change.
• The penny shortage has led to discussions about the feasibility of rounding cash transactions to the nearest nickel.

Statistics:

• 250 billion pennies are still in circulation.
• The penny cost 3.7 cents to make last year, according to the Mint.
• Ending production will save the Treasury about $56 million annually.
• 78% of the Fed's 170 coin distribution terminals have stopped or are about to stop handling pennies.
• 83 coin distribution terminals have already suspended orders, and 12 more will follow on Monday, November 3.

Sources:

• https://www.axios.com/2025/05/24/treasury-penny-production-trump-shopping-change
• https://www.aba.com/news-research/analysis-guides/faq-phasing-out-the-penny
• https://www.axios.com/2025/10/29/fed-rates-cut
• https://www.frbservices.org/campaigns/sept-2025-faq
• https://www.axios.com/politics-policy/donald-trump
• https://www.axios.com/2025/02/10/trump-penny-production-treasury-super-bowl
• https://www.axios.com/2025/05/22/penny-coins-end-production-2026
• https://www.fmi.org/docs/default-source/gr/retail-trades-letter-to-usda-rollins-penny-snap-equal-treatment-101425.pdf?sfvrsn=c5ea33e7_1%3Ca
• https://www.datocms-assets.com/25866/1761675151-giant-eagle-holds-penny-exchange-event_daniel-donovan.pdf
• https://www.usatoday.com/story/money/2025/10/23/penny-shortages-kwik-trip-home-depot/86839080007/
• https://www.scrippsnews.com/us-news/the-end-is-in-sight-for-the-penny-as-retailers-find-themselves-short
• https://apnews.com/article/penny-coins-lincoln-shortage-us-mint-trump-089cf657b3fa4d6dc21533cf6bb08cf3