Penny Shortage Grips USA: Businesses Struggle, Legal Hurdles Loom
A penny shortage is gripping the USA, striking earlier than anticipated. Businesses are grappling with the scarcity, leading to creative solutions and potential legal hurdles. The scarcity is due to a halt in penny production, ordered by President Donald Trump in early 2026. This follows a historical precedent during World War II, when pennies were made from steel instead of copper due to increased demand for the latter. The U.S. Mint is currently unable to produce new pennies, leaving existing stocks to dwindle. The shortage is causing ripples in cash transactions. Customers may receive more change than owed, while businesses struggle to provide pennies. Some establishments are rounding transactions in favor of customers, while others are encouraging cashless payments or offering incentives for penny donations. Federal Reserve coin distribution sites have even stopped fulfilling penny orders or taking deposits since late September. A bill to allow national rounding has been introduced but is yet to reach the House floor. Implementing such a change would be complex and unlikely, with potential legal challenges in states where rounding is prohibited. With billions of pennies in circulation but not easily accessible, the shortage is expected to persist. Businesses and consumers alike are feeling the pinch, awaiting a resolution that could take time to materialize.
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