Retailers Face Growing Penny Shortage, Sparking Limits and SNAP Concerns

2025-11-03 · news · Read time: ~ 2 min

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Retailers Face Growing Penny Shortage, Sparking Limits and SNAP Concerns

What happened

Retailers across the United States are experiencing a growing shortage of pennies, leading to changes in how transactions are handled. This situation has prompted stores to round change and has raised concerns about the impact on programs like the Supplemental Nutrition Assistance Program (SNAP). The issue has also led to calls for clearer federal guidance on how to manage the transition.

Key facts

The shortage of pennies is causing retailers to implement rounding practices for cash transactions.
There is a push for federal clarity on how to handle the end of penny production.
Concerns have been raised about the impact on SNAP and other cash-dependent transactions.

Background & context

The penny, the smallest denomination of U.S. currency, has been a staple in American transactions for decades. However, its production has been a topic of debate due to the cost of manufacturing exceeding its face value. The transition away from using pennies is not unprecedented, as other countries have phased out their smallest denominations in favor of rounding systems. This shift requires adjustments in both consumer behavior and retail operations.

Why it matters (for US readers)

The penny shortage affects everyday transactions, particularly for those who rely on cash, such as low-income individuals and small businesses. The rounding of change could lead to discrepancies in pricing and may disproportionately impact those who use cash for small purchases. Additionally, the lack of clear federal guidelines could create inconsistencies in how different retailers handle the transition, potentially leading to confusion and frustration among consumers.