The U.S. Mint is halting production of the one-cent coin following a February directive from President Donald Trump. The decision comes after the cost to make each penny soared above 3.6 cents, with the Treasury Department now projecting annual savings of around $56 million. The phase-out caught many businesses by surprise, with coin shortages forcing cash-handling retailers to adjust pricing strategies and some regional distribution centers to suspend penny orders. In the absence of nationwide guidance on rounding cash transactions, trade groups warn of potential lawsuits and operational confusion. Banks are worried about what the implication may be for cashing checks. “We want to make sure banks don’t suffer any inadvertent regulatory mishaps, because we’re trying to do the right thing and round in favor of the customer,” Steve Keneally, senior VP of payments at the American Bankers Association. “We would like to have something, whether it’s from a regulator or legislation, that gives us guidance.” Although routine minting is now at an end, the coin remains legal tender, with hundreds of billions remaining in circulation for the time being.
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