The National Grocers Association (NGA) has joined leading food industry groups in urging the U.S. Department of Agriculture (USDA to provide retailers with flexibility under the SNAP equal treatment provisions. The appeal comes as the national penny shortage increasingly disrupts cash transactions in grocery stores across the country.
In a joint letter to Agriculture Secretary Brooke Rollins, the groups requested immediate clarification to help SNAP-authorized retailers comply with equal treatment provisions. These federal rules require that SNAP customers receive the same treatment as all other shoppers, including pricing and payment practices.
USDA Guidance Sought on Rounding Cash Transactions
The letter explicitly requests legal guidance that would allow retailers to round cash transactions to the nearest nickel without violating federal law. The request reflects growing operational challenges faced by independent grocers and other retailers struggling to make exact change amid the shortage.
“Independent grocers are committed to ensuring compliance with all federal regulations and laws while continuing to serve their customers fairly,” said Max Wengroff, senior government relations manager at NGA. “However, the abrupt halt in penny production has created operational and compliance challenges for stores across the country.”
Federal Penny Production Halt Intensifies Challenges
The shortage stems from the U.S. Mint’s decision earlier this year to stop penny production. This action rapidly depleted penny inventories across the Federal Reserve’s distribution network.
“As of October 14, the ordering and depositing of pennies through 64 of 165 Federal Reserve vaults has been suspended due to diminished inventory. This means SNAP retailers across the country are not receiving an adequate supply of pennies to make exact change to cash-paying customers in our stores,” said the letter.
Without federal guidance, the letter warns that seven local retailers rounding cash transactions could inadvertently breach SNAP’s equal treatment rules. The rules strictly prohibit discriminatory or preferential pricing practices toward SNAP participants.
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Independent Grocers Seek Swift USDA Action
NGA emphasized that timely clarification would help protect both SNAP participants and retailers from unintended consequences caused by the penny shortage.
“Grocers of all sizes are navigating the operational fallout of this change,” Wengroff said. “Providing temporary flexibility would prevent confusion and ensure a level playing field while maintaining the integrity of the SNAP program.”
Industry leaders hope the USDA will respond quickly with clear instructions, allowing SNAP-authorized retailers to manage cash transactions without risking compliance violations.
Impact Across the Grocery Sector
Independent grocers, community markets, and larger retail chains all report operational difficulties caused by the lack of pennies. Cash-handling staff must either round transactions or hold inventory longer than usual, which increases costs and complicates daily operations.
NGA and other food industry associations believe that guidance from the USDA will prevent disruptions in service for SNAP customers. The coalition emphasizes the importance of clear guidelines for rounding cash transactions to ensure fair access to groceries during the ongoing coin shortage.
As the penny shortage persists, retailers await federal guidance to adjust cash transaction practices safely. NGA plans to continue advocating for clear and practical rules that uphold SNAP program standards while helping grocers navigate the financial realities of today’s coin shortage.