U.S. grocers are scrambling to find a solution for cash transactions after the U.S. Mint halted penny production. They are concerned about potential violations of SNAP regulations if they have to round prices, potentially leading to unequal pricing for SNAP and cash customers.
Grocers across the U.S. are concerned they will no longer be able to provide exact change for cash-paying customers after the U.S. Mint stopped producing new pennies in August.While many shops plan to round to the nearest 5-cent increment, the grocery industry is worried such a move would violate U.
S. law.Grocery stores that accept Supplemental Nutrition Assistance Program benefits must charge the same amount for customers using SNAP as for those paying with cash. In a letter to Agriculture Secretary Brooke Rollins, grocers said they are seeking guidance on how to stay in compliance with the law if they have to round cash transactions to the nearest nickel.RELATED STORY | Trump says he has directed US Treasury to stop minting new pennies, citing rising cost'This permanent disruption in inventory of the 1-cent coin is beginning to cause a cascade of negative events in stores across the country and has a serious implication for SNAP retailers’ compliance with the SNAP equal treatment provisions,' the National Grocers Association, the National Retail Federation and others wrote in a letter to Rollins. 'Without exact change, our stores have no choice but to round to the nearest nickel for cash customers, meaning these customers would be paying a slightly different price than SNAP customers. Our organizations are very concerned that when a SNAP retailer without exact change is forced into the position of rounding cash transactions it would be in violation of the SNAP equal treatment provisions, which as USDA is aware, prohibits both negative treatment and preferential treatment .'The decision to halt penny production was made by the Trump administration earlier this year.According to the Treasury Department, the cost of producing a penny rose 20% in fiscal 2024. Over the past decade, the cost has increased from 1.3 cents to 3.69 cents per coin. Officials estimate ending penny production will save $56 million annually in material costs.Eliminating the penny is not a partisan issue. Lawmakers from both parties have introduced legislation over the years seeking to end circulation of the coin.
Grocery Stores Pennies SNAP Cash Transactions U.S. Mint
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SNAP Benefits at Risk as Government Shutdown Threatens Food AssistanceThe ongoing government shutdown jeopardizes Supplemental Nutrition Assistance Program (SNAP) benefits for approximately 40 million people. If the shutdown persists into November, funding for SNAP could be depleted, potentially leaving millions without food assistance. The article outlines the impact on the program, the positions of Democrats and Republicans, and the USDA's actions.
Read more »
Cardi B Voices Concerns Over SNAP Cuts Impacting Holiday Food SecurityRapper Cardi B expresses concern that proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) by the Trump administration will negatively affect Americans' food security, particularly during the upcoming Thanksgiving holiday, as part of the 'big beautiful bill act'. She also discusses rising costs and tariffs impacting various sectors.
Read more »
Snap-on Incorporated: Snap It Up Quick as New Highs Will Come SoonMarket Analysis by covering: S&P 500, Snap-On Inc. Read 's Market Analysis on Investing.com
Read more »
Popular instant rice sold at Target, other grocers recalled for possible ‘small stones'The recall was issued to due the possible presence of 'small stones' in the rice packages.
Read more »
Grocery Stores Face Change Challenge Amid Penny ShortageU.S. grocers grapple with providing exact change after the U.S. Mint stopped penny production. The industry seeks guidance on SNAP compliance as rounding transactions could violate equal treatment provisions.
Read more »
Bay Area residents face loss of SNAP food assistance as federal government shutdown drags onMore than five million people across California could see delays in their federal Supplemental Nutrition Assistance Program benefits if the federal shutdown continues, according to a warning from the US Department of Agriculture.
Read more »