Months after the last U.S. penny was minted, states are setting guidelines for cash transactions as businesses and consumers adapt to a penniless economy.
Key Takeaways
States are implementing rounding rules for cash transactions as the U.S. stops producing pennies due to high manufacturing costs. Symmetrical rounding is gaining traction, with federal legislation pending approval.
- Treasury Department continues circulating existing pennies but exact change becomes difficult
- President Trump ended penny production in 2024 citing high manufacturing costs (3.7 cents per coin)
- Symmetrical rounding proposed: rounds down for 1, 2, 6, or 7 cents; rounds up for 3, 4, 8, or 9 cents
- Federal bill passed committee but needs House and Senate approval to implement nationwide
- Multiple states have passed bills awaiting governors' signatures
The Treasury Department will continue circulating existing pennies but exact change is becoming increasingly difficult. President Trump ended penny production early in 2024 citing high manufacturing costs—it cost 3.7 cents to make each one-cent coin, according to the U.S. Mint's annual report.
One proposed solution gaining traction is symmetrical rounding where cash payments round down if ending in one, two, six or seven cents and round up for three, four, eight or nine cents. A federal bill passed out of committee would implement this nationwide but still needs House and Senate approval.
In the meantime states are taking action with bills passing both chambers in Arizona Florida Oregon Tennessee Virginia and Washington awaiting governors' signatures. Indiana recently signed into law a bill requiring businesses to round cash purchases though an optional version is pending governor's signature that would allow businesses to choose their rounding approach.
The Treasury estimates ceasing penny production will save $56 million annually but notes it could increase demand for nickels which also cost more than their value to produce. The proposed federal legislation includes a provision allowing the Treasury to adjust coin composition using cheaper materials as a potential cost-saving measure.
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