FEDERAL RESERVE ANNOUNCES ACTIONS TO SUPPORT PENNY CIRCULATION

The following information was released by the National Association of Convenience Stores (NACS):

The Reserve said it will resume accepting pennies from banks and credit unions at commercial coin distribution locations.

January 09, 2026

The Federal Reserve Financial Services (FRFS) announced yesterday, January 8, new actions to better support the circulation of pennies for commercial activity.

Beginning on January 14, the Federal Reserve said it will resume accepting pennies from banks and credit unions at commercial coin distribution locations, providing services under arrangements with the Federal Reserve that were previously suspended.

While the Federal Reserve continues to support penny deposits, local inventory constraints had limited that activity at some locations. Our monitoring of the flow of penny deposits from financial institutions as these changes take effect will determine whether some subsequent expansion of ordering options for pennies is feasible, given that penny production has ended, the announcement said.

The Federal Reserves role for coins is limited to distribution to banks and credit unions on behalf of the U.S. Mint, which is the nations issuing authority for coins. The Federal Reserve does not provide coins directly to businesses or consumers.

The announcement comes shortly after Republicans on the House Financial Services Committee sent a letter to the Federal Reserve urging it to reopen coin terminals to accept deposits to relieve circulation pressure points.

In late December 2025, Treasury released a penny production cessation FAQs list with recommendations for merchants, such as rounding transactions either up or down to the nearest five cents as pennies fall out of circulation.

NACS has been strongly advocating for federal legislation that would allow retailers to round up or down to the nearest nickel and provide a safe harbor for retailers who round.

NACS previously met with Treasury officials and sent a letter to the Senate Banking and House Financial Services Committees urging them to pass federal legislation to allow businesses to continue carrying out cash transactions as issues arise.

Resolving this issue is a top priority for NACS. Look for more updates as they become available.