Banks, Stores Experiencing a Massive Penny Shortage
A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, on Oct. 23, 2025, in Yorkville, Wis. (AP Photo/Morry Gash)
The United States is facing a growing shortage of pennies as President Trump’s decision earlier this year to end penny production begins to take effect, according to the Associated Press. The move, aimed at cutting costs and streamlining U.S. currency, is now creating ripple effects across the retail and banking sectors.
Merchants in several parts of the country say they’ve completely run out of pennies, making it difficult to provide exact change. Banks, unable to order new supplies, have started rationing their remaining stock. One convenience store chain, Sheetz, even launched a short-lived promotion offering a free soda to anyone who brought in 100 pennies. Another major retailer estimates the shortage will cost it roughly $3 million this year because it must round down transactions to avoid legal issues.
Despite the disruption, few in the industry are defending the penny. Critics have long argued that the coin is obsolete, costly to produce, and cumbersome to handle. Still, many say the sudden phaseout has been mishandled. “We’ve been advocating the end of the penny for 30 years, but this is not the way we wanted it to go,” said Jeff Lenard of the National Association of Convenience Stores.
While other nations have successfully phased out low-value coins, they typically did so gradually—often over several years—allowing time for businesses and consumers to adapt. The U.S., however, has taken a more abrupt approach, leaving many scrambling to adjust to a cash economy without its smallest denomination.
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