Treasury publishes penny FAQs 

The Treasury Department published non-binding guidance for businesses and consumers on handling various penny situations. 

Details: The frequently asked questions cover the end of penny production, timelines, how businesses can handle certain situations, rounding, and more. 

ICBA Advocacy: ICBA in October called on Treasury to issue guidance, noting that inventory management is a significant issue for community banks. 

Background: President Donald Trump in February called for an end to minting pennies given the cost. The U.S. Mint last month struck the final circulating one-cent coin, marking the official end of the penny’s 232-year production run.  

Recent Penny Actions: House Republicans last week asked the Federal Reserve to take a thoughtful approach to its role in recirculating pennies, emphasizing the need for clear legislative guidance to ensure fair and consistent cash practices.   

ICBA Resources:  

• A recent ICBA article spotlights how community bankers are responding to the federal government officially discontinuing production of new pennies.   

• An ICBA blog post breaks down recent developments and ICBA’s efforts to gain clarity and address disruptions stemming from the end of penny production.      

• ICBA Community features community banker discussions on processes and best practices related to the penny going away.       

More Resources:   

• A blog post from the Federal Reserve Bank of Atlanta examines possible rounding methods the United States could use when penny production is phased out. 

• The Federal Reserve Board released FAQs on anticipated changes to penny ordering and deposits following the Treasury Department decision to end penny production.