The US Treasury Department has announced that it will end the production of pennies in early 2026 in an effort to alleviate excess government spending. This has impacted the circulation of pennies and led to challenges for financial institutions and retailers in obtaining supply. Here’s what you need to know:
Why has the government stopped producing pennies?
President Trump announced that the US Treasury would stop the production of pennies to reduce government spending. According to the US Mint, it costs 3.69 cents to make a penny. The last pennies were reportedly produced in August and while pennies are still out there, circulation has slowed resulting in localized supply issues.
How is FSB Supporting You?
While we are already having trouble obtaining penny supply through the Federal Reserve, we are making every effort to support our business and consumer customers with limited penny distribution for as long as we are able to do so. We will continue to accept pennies in all of our locations for deposit or exchange. For convenience, we have coin counting terminals in our Merrimack, Goffstown, Boscawen, Bristol, Gilford and Tilton offices, as well as our Main office located at 387 Central St, Franklin.
What can you do to support local businesses who are affected by the limited supply of pennies?
The best way to support local businesses through this transition is to use electronic payment methods or have exact change when making purchases with cash. When pennies are no longer available, you may experience rounding to the nearest five cents when paying with cash.
For more information, please visit the American Bankers Association FAQ: Phasing Out the Penny