The U.S. Mint’s decision to halt penny production has left credit unions grappling with shortages and uncertainty as industry leaders press lawmakers and regulators for clear rules on rounding and cash transactions.

When the U.S. Mint struck its last circulating penny on Nov. 12, it quietly ended a 232-year run for the nation’s smallest coin — and set off a series of practical questions rippling through the financial system.

The decision to stop minting pennies, driven by production costs that exceeded the coin’s face value, has introduced operational uncertainty for credit unions and other financial institutions that still handle large volumes of cash. With existing inventories shrinking and no national standard for rounding cash transactions, industry groups are warning of confusion for both institutions and consumers.

In a letter sent recently to leaders of the House Financial Services Committee, America’s Credit Unions urged Congress to move quickly to provide clarity. The organization called for advancing the bipartisan Common Cents Act, which would formally end penny production, clarify that existing pennies remain legal tender, and establish a uniform national rounding standard for cash purchases.

The letter followed a separate joint appeal from America’s Credit Unions, the American Association of Credit Union Leagues and all state leagues to Federal Reserve Governor Christopher Waller. Together, the groups said the end of penny production, combined with dwindling inventories at Federal Reserve coin depots, was creating uncertainty across the country.

“The end of penny production, shrinking inventories at Federal Reserve distribution sites, and the lack of a national rounding standard are creating uncertainty for credit unions and other financial institutions,” the organizations wrote.

Beyond congressional action, the industry is pressing regulators for interim guidance.

The groups asked the Federal Reserve to keep as many coin depots open as possible, shift penny inventories to areas facing shortages, and provide regular public updates on supply conditions. They also urged coordination with the National Credit Union Administration and other regulators to clarify acceptable rounding practices — including whether rounding should apply to total bills or individual items, how sales tax should be handled, and what disclosures should appear on receipts.

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For credit unions on the ground, the questions are already arriving from members. Michael Blevins, a branch manager for $9.7 billion-asset Eastman Credit Union in Kingsport, Tenn., said penny shortages are likely as coins slowly disappear from circulation.

“We’ll probably have to revert, or the businesses will have to revert to a rounding option to round up to the nearest nickel or down to the nearest nickel to compensate if no pennies are available,” Blevins told News Channel 11 in Johnson City.

At Eastman, members have been asking whether pennies are still available, whether checks can be cashed with penny change, and whether coins can still be deposited. “The answer to all three of those questions is yes,” Blevins said, adding that the credit union continues to distribute and accept pennies while supplies last.

Absent swift action from Congress and regulators, credit unions warn that the humble penny’s exit could leave more than spare change behind — replacing it with confusion at the teller window and checkout counter alike.

“The end of U.S. penny production is bringing unexpected challenges for credit unions.”

– America’s Credit Unions