The National Grocers Association (NGA) has joined with other food-industry associations in urging the U.S. Department of Agriculture to issue immediate guidance to SNAP-authorized retailers amid the continuing national penny shortage.
In a joint letter sent to Agriculture Secretary Brooke Rollins, the groups asked the USDA to clarify how retailers can lawfully manage cash transactions under SNAP’s “equal treatment” rule, which requires that SNAP customers receive the same treatment as all other shoppers. Specifically, they requested legal confirmation that retailers may round cash transactions to the nearest nickel without violating federal law.
Earlier this year, the U.S. Mint discontinued penny production, triggering a reduction of penny inventories throughout the Federal Reserve distribution system. As of mid-October, more than one-third of Federal Reserve vaults have suspended penny orders and deposits, leaving many retailers unable to make exact change for customers paying with cash.
“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 coalition letter warns that, absent federal direction, retailers forced to round cash transactions might inadvertently violate SNAP’s equal treatment standards, which bar discriminatory or preferential pricing practices for SNAP customers.
NGA urged the USDA to move quickly, emphasizing that expedited clarification would shield both SNAP participants and retailers from unintended consequences stemming from the nationwide coin shortage.
“Grocers of all sizes are navigating the operational fallout of this change,” Wengroff 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.
About NGA
The National Grocers Association is the U.S. trade association for retail and wholesale community grocers in the independent sector. Independent retailers generally are privately owned or controlled food retail firms across various formats. The independent grocery sector accounts for approximately 1.2 percent of the U.S. economy and is responsible for more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA’s membership includes retail and wholesale grocers in every congressional district, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
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