Hunton Retail Law Resource

For years, the cost to mint a penny has exceeded its face value. In February 2025, President Trump instructed the U.S. Mint to cease penny production, calling the practice “wasteful” considering its cost. In May, the U.S. Mint confirmed that it placed its last order of pennies, which were minted in June. Although pennies remained in circulation, the Federal Reserve then began ceasing mechanisms to distribute pennies to banks, resulting in widespread shortages across the country. By November, 109 of the Federal Reserve’s 165 currency distribution locations no longer distributed pennies. The penny’s swift cancellation and sudden shortage came without substantive guidance to businesses and banks on how to handle transactions moving forward. Although limited guidance has since been issued, stakeholders remain left with uncertainty and ambiguity about how to comply with the laws amidst the shortage. The penny shortage poses several legal challenges for businesses and banks, who should stay abreast of these issues as the shortage persists.