State lawmakers rush to set rounding rules for when there are no pennies
Source: ABC News/AP
March 12, 2026, 12:05 AM
Months after the last of the United States' 1-cent coins were pressed, some states are beginning to offer their own 2 cents on the penny problem by setting rounding guidance for cash purchases. President Donald Trump announced early last year an end to penny production, saying it was wasteful. It cost 3.7 cents to make each 1-cent coin in 2024, according to the U.S. Mint.
The move led to a shortage of pennies in cash registers last summer, forcing consumers and businesses to confront a penniless future in which making exact change would be difficult. The Treasury Department has said it will continue circulating the roughly 114 billion pennies that exist for as long as possible. Pennies must still be accepted as payment.
One solution to the penny problem is rounding to the nearest nickel, using a practice called symmetrical rounding. If the final price, after taxes, ends in one, two, six or seven cents, payment in cash rounds down. For example, $1.91 or $1.92 becomes $1.90. If the price ends in three, four, eight or nine, cash payment rounds up. For $1.98 or $1.99, the consumer pays $2.
A bill introduced last year in Congress and passed out of the House financial services committee 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 hasnt been voted on in the House and would still need to move through the U.S. Senate before reaching Trumps desk.
Read more: https://abcnews.com/Lifestyle/wireStory/state-lawmakers-rush-set-rounding-rules-pennies-130990013
twodogsbarking
(18,449 posts)Timewas
(2,724 posts)Why can't they just price everything to the nearest nickel then no "rounding" needed...
Historic NY
(39,950 posts)you could make 3 pennies for the price of one nickle.
70sEraVet
(5,441 posts)It's altogether a crazy system -- it costs more to make the currency than the currency is worth, if you save cash in a bank it becomes worth less than when you first put it in the bank, and you never know from one day to the next what a dollar bill will buy.
And yet we spend so much of our precious lives chasing after it.
cstanleytech
(28,420 posts)Timewas
(2,724 posts)T he cost of a nickle has nothing to do with pricing to round thigs up or down when they eliminate the penny...It pretty much has always cost more to mint money than it is worth....
rurallib
(64,670 posts)I suppose that could be done easily, but would the taxpayers buy it? Also, remember sales taxes in particular are very regressive.
IbogaProject
(5,810 posts)But sales tax can be embedded in the price in New York State, but I never see that.
Historic NY
(39,950 posts)
]
Just announce your putting Trump face on it
mackdaddy
(1,969 posts)The biggest issue is Sales Tax which makes it difficult to always have the price at some even 5c point.
rurallib
(64,670 posts)They are so needy
cstanleytech
(28,420 posts)hay rick
(9,549 posts)It's posted on the wall behind the cash registers.
zeusdogmom
(1,138 posts)Jacson6
(1,936 posts)It's time to just round everything up to a nickel.
Journeyman
(15,439 posts)Are we to get them free now from the pharmacy, when they pay us to take our medications out of store?
Jacson6
(1,936 posts)Torchlight
(6,729 posts)70sEraVet
(5,441 posts)Not just tangible, but something simple and necessary -- something that would convey a basic sense of COMPASSIONATE value.
Let's say, one dollar equals one dozen eggs; a half-dollar would equal half a dozen eggs, etc. The smallest denomination would be one egg.
The federal minimum wage would always ensure that a worker would be able to feed his family, without having to convince a roomful of Republican lawmakers every few years that it is contrary to a nation's interests to let workers starve.
slightlv
(7,735 posts)While I won't say sales prices always end in a 8 or a 9, I will say I've rarely seen sale prices that end in 2 or 6.
This rounding process is ripe for corruption. Find the most used final number in a sales price, add to that the state/local tax on the item, and you've got a formula for skimming off the top. But then, I'm not "braining" very well today, it seems. Trouble with my eyes and my head is spinning at times.
This just looks like another grift to me...
Maninacan
(269 posts)I bet Canada planned ahead and had the laws written beforehand.
eppur_se_muova
(41,745 posts)Maybe it takes 3.7 cents to make, but it can be used over and over for years before it wears out, participating in many dollars worth of transactions. Discontinuing it because of material costs is a bit short-sighted.
Over the years, the US, and the Colonies before that, have phased out the half-cent, the quarter-cent (aka farthing), the half-farthing, and the quarter-farthing, because they no longer made sense. The cent will eventually go too, but there's no rush. It is part of the basis of our money system, not just our coinage. It seems to me it would have been smarter to issue a 2-cent coin, probably in the same diameter, but thinner, and a different color (at least slightly). Thinner would mean less cost to make. Banks might dislike having to modify their coin sorters, but most people wouldn't be affected. Retail stores would just toss a small box in the pennies bin, and put either the new coins or the old ones in that, until the changeover (no pun intended) ran its course. And rounding to the nearest 2 cents would be less of a problem than rounding to 5 cents.
It's still not too late, either ..... having a shortage of cents might make it easier.
3825-87867
(1,918 posts)$20.00
And so on an on and on and on...
Oh and don't forget stamps. Just make them $1.00 each and if the maunfacturer price goes up, just ad an "/up by 5" (cents or dollar) to it.
Then let the business keep the left over.
But trumps $99.99 stuff will get an exception for the taxability problem, right?
Deminpenn
(17,432 posts)That's is what the local Walmart, Aldi and Home Depot are doing. I have not had any cash purchase round up to the nearest nickel, it's always been down.