America’s Credit Unions and nearly every state credit union league are calling on the Federal Reserve to step in with clear guidance and regulatory coordination as coin circulation challenges, particularly involving pennies, continue to disrupt financial institutions and their members. In a joint letter sent Dec. 11 to Federal Reserve Governor Christopher Waller, the groups urged the Fed to work closely with Treasury and Congress on a uniform approach to pricing, rounding and coin distribution during the transition away from penny production.
The organizations said credit unions are navigating inconsistent state pricing laws and sales-tax rules that assume cash transactions can still be calculated to the cent. As penny availability declines and some merchants adopt rounding practices, credit unions are left to reconcile transactions without standardized guidance, creating confusion for members and operational complications for tellers.
The letter noted that credit unions must plan for the reality that Congress could eventually discontinue the penny, a move that would affect accounting systems, cash-handling policies, and pricing displays nationwide. In the meantime, credit unions are still expected to provide accurate change and support vulnerable populations, including seniors, low-income households and rural members who rely heavily on cash.
Credit unions are also experiencing persistent strain from uneven coin distribution. Institutions serving multiple regions report recurring shortages of both pennies and nickels, forcing them to limit coin orders, seek alternative sources or ration supply to local businesses.
The leagues urged the Federal Reserve to coordinate new rules, update operational guidance, assist with transition planning, and ensure that costs associated with rounding or system updates do not disproportionately fall on credit unions and their members.
“Credit unions need clarity to continue meeting member needs without disruption,” the letter concluded.
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