Trump Dealing With Penny Shortage?
Most Americans haven’t noticed it yet, but the penny is slowly vanishing from everyday transactions.
For months, no new pennies have been minted in the United States. As a result, more businesses are reporting empty penny trays at checkout, forcing retailers to rethink how they handle cash payments.
The penny was officially designated for retirement last year after government officials determined it costs more to produce than it is worth. Attempts to lower production costs by changing materials were unsuccessful, leaving few practical alternatives.
While the United States has issued a one-cent coin since 1793, that era is now coming to a close.
The U.S. Mint plans to strike new pennies in 2026, but those coins will not enter circulation. Instead, the estimated 300 billion pennies already in circulation will remain legal tender and can still be spent or deposited.
However, if consumers continue holding onto jars of loose change rather than using them, retailers may be forced to permanently change how cash transactions work.
Retailers Begin Adjusting Checkout Policies
Many convenience stores have already warned customers not to expect exact change. Some businesses have offered small incentives—such as gift cards or promotional items—to encourage shoppers to turn in their pennies.
Grocery stores are also adjusting. Locations within the Kroger family now ask cash-paying customers to provide exact change, though pennies are still accepted when available.
Other national retailers have taken a different approach.
Stores that run out of pennies have begun rounding change to the nearest nickel, typically in the customer’s favor. For example, a shopper owed $1.21 may receive $1.25 instead. Posted signage usually alerts customers when this policy is in effect.
Photos circulating online show similar notices at major home improvement stores, advising customers that rounding will occur if pennies are unavailable.
Gas stations, pet supply retailers, and major fast-food chains have also confirmed updated penny policies as supplies continue to shrink.
Why the U.S. Can’t Drop the Penny Overnight
Retail experts say eliminating the penny in the United States is more complicated than it was in Canada, which phased out its one-cent coin about a decade ago.
Still, most experts agree that rounding transactions after sales tax—or rounding the change owed—is the simplest and most consistent approach.
In some cases, customers may also be asked to pay with a debit card, check, or digital payment method if exact change is unavailable.
The Federal Reserve Steps In
Earlier this month, the Federal Reserve announced it would once again accept penny deposits from banks and credit unions. The move is intended to improve coin circulation for businesses after a temporary suspension disrupted supply.
Despite the renewed effort, officials say everyday pennies hold little financial value unless they are rare or collectible.
Since pennies remain legal tender, most consumers are better off spending or depositing them rather than stockpiling jars of loose change at home.
A Small Coin, A Big Shift
The slow disappearance of the penny may seem minor, but it reflects a larger reality: rising costs and outdated systems are quietly reshaping how Americans handle even the simplest transactions.
For shoppers who still rely on cash, the days of exact change may soon be a thing of the past.
