Grocers across the U.S. are concerned they will no longer be able to provide exact change for cash-paying customers after the U.S. Mint stopped producing new pennies in August.
While many shops plan to round to the nearest five-cent increment, the grocery industry is worried such a move would violate U.S. law.
Grocery stores that accept Supplemental Nutrition Assistance Program benefits must charge the same amount for customers using SNAP as for those paying with cash. In a letter to Agriculture Secretary Brooke Rollins, grocers said they are seeking guidance on how to stay in compliance with the law if they have to round cash transactions to the nearest nickel.
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"This permanent disruption in inventory of the 1-cent coin is beginning to cause a cascade of negative events in stores across the country and has a serious implication for SNAP retailers’ compliance with the SNAP equal treatment provisions," the National Grocers Association, the National Retail Federation and others wrote in a letter to Rollins. "Without exact change, our stores have no choice but to round to the nearest nickel for cash customers, meaning these customers would be paying a slightly different price than SNAP customers. Our organizations are very concerned that when a SNAP retailer without exact change is forced into the position of rounding cash transactions it would be in violation of the SNAP equal treatment provisions, which as USDA is aware, prohibits both negative treatment (discriminatory practices) and preferential treatment (incentive practices)."
The decision to halt penny production was made by the Trump administration earlier this year.
According to the Treasury Department, the cost of producing a penny rose 20% in fiscal 2024. Over the past decade, the cost has increased from 1.3 cents to 3.69 cents per coin. Officials estimate ending penny production will save $56 million annually in material costs.
Eliminating the penny is not a partisan issue. Lawmakers from both parties have introduced legislation over the years seeking to end circulation of the coin.
