PENNY CRISIS: MAIN STREET BUSINESSES CALL FOR SNAP CLARITY

The following information was released by the Retail Industry Leaders Association (RILA):

By [ Austen Jensen ]

Washington, DC

10/14/2025

Groups representing thousands of the nations retailers, grocers, pharmacies and convenient stores that populate Main Streets and shopping districts across America called on Agriculture Secretary Brooke Rollins to provide urgent clarity on regulations regarding SNAP payments as businesses grapple with a looming penny shortage.

We request immediate legal guidance from USDA to specifically stipulate that SNAP- authorized retail food stores are not in violation of the SNAP equal treatment provisions if the store rounds cash transactions to the nearest nickel, the business groups wrote in a letter to Rollins.

The U.S. Mint ended production of the penny this summer. The Federal Reserve, responsible for distributing coins, is already reporting shortages across dozens of locations with the expectation for this issue to grow as the U.S. heads into the holiday season.

Retailers are growing concerned that the penny shortage will adversely impact operations as we enter the busiest stretch of the shopping season, said Austen Jensen, RILA Senior Executive Vice President for government affairs. Retailers encourage key agencies to partner with industry stakeholders to resolve the penny circulation issues that are increasingly impacting business operations and increasing costs.

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RILA is the US trade association for leading retailers. We convene decision-makers, advocate for the industry, and promote operational excellence and innovation. Our aim is to elevate a dynamic industry by transforming the environment in which retailers operate.

RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $2.7 trillion in annual sales, millions of American jobs, and hundreds of thousands of stores, manufacturing facilities, and distribution centers domestically and abroad