RANKING MEMBERS ELIZABETH WARREN AND MAXINE WATERS URGE FEDERAL AGENCIES TO PROVIDE IMMEDIATE GUIDANCE TO ADDRESS THE NATIONAL PENNY SHORTAGE CAUSED BY THE TRUMP ADMINISTRATION'S ABRUPT END TO PENNY PRODUCTION

The following information was released by the U.S. Senate Committee on Banking, Housing, and Urban Affairs:

U.S. Senator Elizabeth Warren (D-MA), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Congresswoman Maxine Waters (D-CA), Ranking Member on the House Financial Services Committee, sent a letter to Department of the Treasury Secretary Scott Bessent, Federal Reserve Chair Jerome Powell and US Mint Acting Director Kristie McNally, calling on the agencies to issue immediate guidance following the Trump Administration's abrupt and unilateral decision to discontinue penny production.

In the letter, the lawmakers highlight that the Administration issued this decision without a transition plan or public guidance, leaving banks, retailers, and consumers uncertain about how to conduct basic cash transactions and adjust their operations accordingly. They go on to warn that without clear federal guidance, the Administration is recklessly inviting inconsistent price-rounding practices and unequal treatment of customers, especially those who rely on cash for daily essentials. All of this piles on top of a growing affordability crisis that is already squeezing hardworking families nationwide.

"We write to urge your agencies to provide immediate guidance amidst concerns from consumers, retailers, and banks regarding the impact of penny shortages," wrote the lawmakers. "Despite the public's repeated calls for clarity, the Treasury Department and the Federal Reserve (Fed) have yet to provide any guidance or formulate a plan to manage penny circulation to meet current and future demand. As the Trump Administration fails to provide guidance after their abrupt and unilateral decision to stop minting pennies, they risk worsening inconsistencies in customer transactions, uncertainty in pricing approaches, legal compliance, tax calculations, and more."

The lawmakers go on to address the impact this decision will have on businesses that support our most vulnerable communities, specifically those that serve or represent individuals and families who rely on the Supplemental Nutrition Assistance Program (SNAP). Since the Administration's abrupt announcement, many of these organizations have sought legal clarification to ensure they are not violating equal-treatment requirements when transactions must be rounded to the nearest nickel. However, they still have not received the guidance necessary to protect SNAP recipients and comply with the law.

"In addition, organizations providing services to vulnerable individuals have highlighted challenges stemming from penny shortages. Specifically, entities representing Supplemental Nutrition Assistance Program (SNAP)-authorized food stores have highlighted stores' inability to provide exact change to customers paying in cash."

Warren and Waters conclude the letter by seeking a detailed analysis of the Trump Administration's unilateral decision to end penny production without Congressional input, as well as how the Administration is planning to address the consequences to low-income Americans, states, small businesses, financial institutions, and the broader economy. They request that the agencies publicly release a plan to manage penny circulation no later than December 12, 2025, and provide answers to their questions along with a briefing on agency efforts to address ongoing concerns by December 12, 2025.

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