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Banks Plead for Rules as Penny Shortages Spread and Fed Curbs Coin Terminals

With production halted, reduced Federal Reserve coin service is constricting supply, leaving businesses to improvise rounding policies.

Overview

  • Of 165 Federal Reserve coin-distribution terminals, 102 are neither supplying pennies nor accepting deposits, a sharp increase since early October and including major hubs such as New York, Chicago, St. Louis, Dallas and San Francisco.
  • The U.S. Mint struck the final circulating one-cent coin on Nov. 12 in Philadelphia, ending a 232-year run; pennies remain legal tender with an estimated 250–300 billion still in circulation.
  • Banks and retailers are urging the federal government to reopen coin terminals, issue clear rounding guidance and launch public education, citing legal risks for SNAP transactions and price parity.
  • Treasury officials estimate ending penny production will save taxpayers about $56 million annually, as each coin has recently cost roughly 3.69 cents to make.
  • Operational strains are mounting as banks ship pennies long distances to deposit them, some stores post “No Pennies” notices, and cash transactions are rounded locally, raising concerns for cash-dependent consumers and small businesses.