States Move to Set Rounding Rules for Penny Shortage
Rounding bills have been introduced in about two dozen states since late last year.
Mar 13, 2026
A number of states have proposed bills to deal with penniless cash transactions after the U.S. stopped minting pennies last year, causing a penny shortage, reported the Associated Press.
Rounding bills that either allow or require businesses to round cash purchases have been introduced in about two dozen states since late last year, according to an Associated Press analysis using the bill-tracking service Plural. Meanwhile, some other state agencies have published guidelines for rounding, advising that rounding should happen after tax and that businesses must make sure the full taxed amount still goes to the state.
The bills have passed both chambers and await the governor’s signature in Arizona, Florida, Oregon, Tennessee, Virginia and Washington.
Earlier this month, Indiana Governor Mike Braun signed a bill into law that requires businesses to round cash purchases for all transactions that do not end in a zero or five. Lawmakers revised that provision in a second bill that makes rounding optional, which would take effect March 15 if Braun signs it into law, AP wrote.
In Tennessee, legislation makes symmetrical rounding exempt from legal claims under a state consumer protection law but does not require rounding.
“It is to provide safe harbor for private businesses,” said Republican Rep. Charlie Baum, the bill sponsor in Tennessee, during floor debate.
According to AP, a bill passed out of the House financial services committee last year would apply symmetrical rounding across the country. U.S. Rep. Lisa McClain (R-Mich.) said in an email the federal law is important to prevent a “confusing patchwork of state policies.”
The bill hasn’t been voted on in the House and would still need to move through the U.S. Senate before reaching Trump’s desk.
In late December 2025, Treasury released a penny production cessation FAQs list with recommendations for merchants, such as rounding transactions either up or down to the nearest five cents as pennies fall out of circulation.
NACS has been strongly advocating for federal legislation that would allow retailers to round up or down to the nearest nickel and provide a safe harbor for retailers who round.
NACS previously met with Treasury officials and sent a letter to the Senate Banking and House Financial Services Committees urging them to pass federal legislation to allow businesses to continue carrying out cash transactions as issues arise.
In January, the Federal Reserve Financial Services (FRFS) said it will resume accepting pennies from banks and credit unions at commercial coin distribution locations, providing services under arrangements with the Federal Reserve that were previously suspended.
