---
title: "State lawmakers draft rounding rules as U.S. Mint stops penny production"
url: https://burnaze.com/article/2252b1a4-0ff5-4c07-9d0e-b0db4a2b1e0d
source: "RetailWire"
original_url: https://retailwire.com/state-lawmakers-draft-rounding-rules-as-u-s-mint-stops-penny-production/
author: "Chase Binnie"
category: "Retail"
industry: "Retail"
published: 2026-03-16T15:44:53.000Z
modified: 2026-05-08T21:58:02.060Z
image: https://images.unsplash.com/photo-1507679799987-c73779587ccf?w=1600&q=80&auto=format&fit=crop
---

# State lawmakers draft rounding rules as U.S. Mint stops penny production

**TL;DR:** The U.S. Mint has stopped producing new pennies, leading state lawmakers to draft regulations for rounding cash transactions to the nearest nickel. At least six state legislatures are considering bills to standardize rounding, with some favoring consumers and others retailers.

*By Chase Binnie, originally published in RetailWire on 2026-03-16. [Read the original](https://retailwire.com/state-lawmakers-draft-rounding-rules-as-u-s-mint-stops-penny-production/).*

## Story

The U.S. Mint has stopped producing new pennies, leading at least six state legislatures to consider bills that would standardize how retailers round cash transactions to the nearest nickel. This change primarily impacts cash transactions, which constituted 18 percent of all point-of-sale purchases in 2023. Electronic card and digital payments will continue to calculate exact change.

According to legislative filings reviewed this month and reported by PBS News, three states are contemplating requirements for all cash purchases to round to the nearest five cents. Illinois, Ohio, and Pennsylvania currently have such bills under consideration. These bills vary in their approach, with some favoring consumers, others retailers, and some opting for a neutral mathematical formula.

New York's proposal would grant retailers the discretion to choose their rounding method but would necessitate prominent signage at each register to explain the policy. This adjustment is projected to influence approximately 11 billion cash transactions annually in the U.S., based on Federal Reserve payment data.

Consumer advocacy groups have voiced concerns that rounding policies favoring retailers could result in an average extraction of an additional two cents per transaction. This could potentially transfer hundreds of millions of dollars from shoppers to stores.

The National Retail Federation has warned that inconsistent state rules would compel retail chains operating in multiple states to implement diverse rounding systems into their point-of-sale software. Retail industry groups have urged Congress to provide federal guidance rather than allowing states to impose conflicting rounding requirements.

> "We need uniform standards, or you’ll have a retailer rounding down in Michigan and rounding up in Indiana. That creates chaos in daily operations and consumer confusion."

Jason Miller, chief policy officer at the Retail Industry Leaders Association, emphasized the need for consistent standards.

Canada eliminated its penny in 2013 and implemented a balanced rounding system. Studies of Canadian transactions indicated a minimal impact, with consumers experiencing a loss or gain of less than one cent per purchase on average. Retailers there reported no significant complaints.

No major U.S. retailer has yet announced a nationwide rounding policy in response to the Mint's production halt. Last week, the Illinois bill, which proposes rounding in consumers’ favor and includes fines of up to $500 per violation, advanced out of committee. A floor vote on this bill is scheduled for April 12.

## Entities

- Retail (sector)
- new york (location)
- canada (location)
- ohio (location)
- Pennsylvania (location)
- Illinois (location)
- Congress (regulator)
- National Retail Federation (company)
- Jason Miller (person)
- state legislation (topic)
- RetailWire (publication)
- Chase Binnie (person)

---
Originally reported by Chase Binnie, RetailWire (https://retailwire.com/state-lawmakers-draft-rounding-rules-as-u-s-mint-stops-penny-production/). Summarized by Burnaze (https://burnaze.com/article/2252b1a4-0ff5-4c07-9d0e-b0db4a2b1e0d).