The U.S. is running out of pennies. Here’s how it could change how you pay
The U.S. is officially running out of pennies, and it could change how you pay at the cash register.
Earlier this year, President Donald Trump ordered the Treasury to end penny production, calling it “wasteful.”
“For far too long the United States has minted pennies which literally cost us more than 2 cents,” he said in a Truth Social post. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”
As a result, the U.S. Mint has stopped making new one-cent coins after more than 230 years of production.
It costs about $3.69 to make a single penny, and ending production is expected to save the U.S. Treasury more than $50 million a year, according to the latest U.S. mint report.
Now, as banks and businesses adjust, the country is preparing for the ripple effects.
Here’s what to know.
How will this penny shortage affect me?
For now, the biggest change you might see is at the checkout counter. Some stores are already running short on pennies because the Federal Reserve has started rationing supplies to banks.
Of the 170 coin distribution centers in the U.S., about one third (including three in Dallas) have stopped handling pennies altogether.
That means when you pay in cash, your total might be rounded to the nearest nickel instead of down to the exact cent. The idea is to keep transactions moving even when stores can’t make perfect change.
Experts say it isn’t a nationwide crisis yet, but the effects could grow over the next year as the existing penny supply slowly disappears from circulation.
What are stores doing about the penny shortage?
Retailers are adjusting in different ways depending on how much they rely on cash.
Love’s Travel Stops and Kwik Trip are rounding totals to the nearest five cents. Love’s rounds up, while Kwik Trip rounds down.
Sheetz stores are offering small perks to shoppers who turn in spare pennies, and PetSmart and Burger King have said exact change might not always be possible for cash transactions.
Some stores are even offering donation options for leftover change to go toward local charities or community programs.
Will I get shorted when paying with cash?
Not necessarily. Stores that round up or down are supposed to keep transactions as even as possible over time.
You might pay a few extra cents on one visit and save a few cents on the next.
And while it may be tempting to hold on to them hoping their value will go up, experts say there’s no reason to hoard pennies. They’re not expected to become collector’s items.
Will prices or receipts look different now?
Most stores don’t plan to raise prices because of the penny shortage.
According to the National Retail Federation, changing every price tag, adjusting sales tax systems, and reprinting labels would be much more costly than rounding at checkout.
Instead, prices will stay the same, but receipts might show rounded totals for cash purchases.
For example, a $5.02 total could round down to $5, while a $5.03 total could round up to $5.05.
Do I need to worry about paying more when using a card?
No. Digital payments, including debit and credit cards, are not affected by the penny shortage.
These transactions can still be processed to the exact cent, so you won’t lose money from rounding.
Many stores may start encouraging card or mobile payments more often to avoid confusion with cash totals, but that shift shouldn’t make your purchases more expensive.
How are banks and stores preparing for fewer pennies in circulation?
The Federal Reserve began limiting penny shipments to banks earlier than expected, forcing many retailers to recycle the coins they receive back into circulation instead of holding onto them.
Banks are advising businesses to deposit their extra pennies to help keep supply flowing. Some states, however, could run into legal challenges before officially rounding prices, since cash transaction laws vary.
In certain places, rounding totals up or down isn’t yet permitted under state law.
Lawmakers have discussed creating a national rounding policy to keep things consistent, but progress has slowed as Congress focuses on broader budget issues.
What should shoppers expect next?
Over the next year, expect to see more stores rounding cash totals and pushing digital payment options.
Experts say the country was already on track to make this transition by 2026, but the penny’s production halt has sped things up.
Retailers are being told to “be understanding” with customers as they adapt. And for everyday shoppers, this change may feel small at first, but it marks the end of a long chapter in American currency.
So while the penny may be disappearing, your change isn’t vanishing altogether; it’s just getting a little rounder.
