Washington, D.C. — The National Grocers Association (NGA), the nation’s leading association representing independent community grocers, joined a broad group of food industry leaders in calling on the U.S. Department of Agriculture (USDA) to provide immediate guidance to Supplemental Nutrition Assistance Program (SNAP)-authorized retailers as the national penny shortage continues to impact cash transactions across the country.
In a joint letter addressed to Agriculture Secretary Brooke Rollins, the groups requested clarification from the USDA to ensure retailers remain in compliance with the SNAP equal treatment provisions, which require that SNAP customers be treated the same as all other shoppers. The letter seeks legal guidance allowing retailers to round cash transactions to the nearest nickel without being considered in violation of federal law.
Earlier this year, U.S. Mint’s cessation of penny production, a decision that has led to rapidly diminishing inventories of pennies across the Federal Reserve’s distribution network. As of mid-October, more than one-third of Federal Reserve vaults have suspended penny orders and deposits, leaving retailers across the country unable to make exact change for cash-paying customers.
“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 the National Grocers Association. “However, the abrupt halt in penny production has created operational and compliance challenges for stores across the country. Without clear guidance from USDA, retailers face uncertainty about how to remain compliant with SNAP rules while managing a very real coin shortage.”
The group’s letter warned that, without a federal directive, seven local retailers forced to round cash transactions could inadvertently violate SNAP’s equal treatment rules, which prohibit both discriminatory and preferential pricing practices for SNAP customers.
NGA urged the USDA to act swiftly, noting that an expedited clarification would help protect both SNAP participants and retailers from unintended consequences caused by the nationwide coin shortage.
“Grocers of all sizes are navigating the operational fallout of this change,” Wengrroff added. “Providing temporary flexibility would prevent confusion and ensure a level playing field while maintaining the integrity of the SNAP program.”
Learn more about NGA’s advocacy priorities and initiatives here
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About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
