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Why is the US stopping penny production?
The US stopped minting pennies in June 2025 after President Trump announced the decision earlier that year. The main reason is that the cost to produce a penny exceeds its face value, making it economically inefficient. The government aims to save money and reduce waste by halting penny production altogether.
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How are retailers and banks handling coin shortages?
Retailers like Giant Eagle and Sheetz are hosting penny exchange events to gather coins and facilitate accurate change. Banks are also adjusting by encouraging digital payments and rounding transactions. Some stores are offering promotions to collect coins, but the lack of federal guidance has caused confusion and logistical challenges across the country.
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What does this mean for everyday cash transactions?
With pennies becoming scarce, many stores are rounding cash transactions to the nearest nickel or dime. This can lead to minor differences in change, and some businesses are experiencing financial losses due to rounding down. Consumers may notice fewer pennies in circulation and more cashless payment options becoming the norm.
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Will the penny be completely phased out?
Yes, the US is moving toward phasing out the penny entirely. Since the last pennies were minted in June 2025, they are no longer being produced or circulated widely. While some states have laws about rounding transactions, the overall trend is toward eliminating the penny from everyday use.
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How does the penny shortage affect small businesses?
Small businesses are feeling the impact of the penny shortage through increased costs and logistical hurdles. Some are losing money due to rounding down transactions, while others are participating in exchange events to gather coins. The lack of federal guidance has made it harder for small businesses to plan and adapt.
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What are the future options for handling small cash transactions?
As pennies become less available, more businesses are shifting to digital payments like credit cards, mobile wallets, and contactless options. Rounding practices are also becoming more common, making cash transactions quicker and more efficient, even as the physical coins disappear.