Washington Local Government Urges Federal Solution to Coin Shortage
Clark County, Washington, is currently facing a significant penny shortage. This issue arose after the U.S. Treasury ceased production of 1-cent coins last month. This move, initiated under former President Trump, aimed to curb costs as minting pennies became more expensive than their actual value.
Impact on Local Government and Businesses
Alishia Topper, the local treasurer, noted that the county’s bank, JPMorgan Chase, could not fulfill coin orders. This shortage affects various local entities, including schools, courts, and the sheriff’s office, all of which rely on coins for cash transactions, including property tax payments.
Challenges for Cash Transactions
Topper expressed concerns about the unclear situation for businesses collecting cash payments. “Businesses and local authorities have an exact amount to collect, but the lack of change complicates payment processes,” she said.
- Some retailers, such as McDonald’s and Taco Bell, are adjusting by rounding cash transactions.
- Signs indicating these changes have been posted in many stores.
- Fred Meyer, a grocery store chain, has also instructed customers to use exact change.
Legislative Efforts for a National Solution
The National Restaurant Association is advocating for federal legislation to standardize cash transaction rounding to alleviate the burden on businesses. The proposed Common Cents Act was introduced in September but has yet to gain legislative approval.
Local Responses and Policy Considerations
Topper has indicated that while Clark County has not established a formal policy regarding the penny shortage, federal guidance would be preferable. She mentioned that rounding down cash payments could be a temporary solution until clearer regulations are implemented.
The Washington State Treasury has not provided insight on this issue, while the Oregon State Treasury is still in discussions related to the matter. Currently, cash payers in Clark County might want to prepare by accumulating their own pennies.
With the U.S. Treasury halting penny production, the impacts of the coin shortage are felt widely, affecting both everyday transactions and local governance.
