Full Breakdown
Arizona and Virginia Consider Rounding Laws Amid Penny Shortage
3/15/2026, 11:42:52 PM
New Arizona Law on Cash Transactions
On March 14, 2026, Arizona Governor Katie Hobbs signed House Bill 2938, which mandates that businesses round cash transactions to the nearest 5 cents when pennies are unavailable. This legislation responds to the increasing scarcity of pennies, exacerbated by former President Donald Trump's decision to halt penny production in 2024, citing the cost of producing each coin—3.7 cents—as wasteful. The Greater Phoenix Chamber, representing numerous businesses, endorsed the law, stating it provides clarity and efficiency for cash transactions. Under this law, totals ending in 1 or 2 cents will be rounded down, while those ending in 3 or 4 cents will be rounded up. Totals that end in 0 or 5 cents remain unchanged. Although the U.S. Treasury Department has indicated that it will continue to circulate the existing 114 billion pennies, the law aims to facilitate smoother transactions in a cash economy increasingly devoid of pennies.
Virginia's Proposal for Local Rounding Rules
In a similar vein, Virginia lawmakers are considering a bill that would empower cities and counties to establish their own rounding rules for cash transactions in the absence of pennies. This proposal reflects a growing recognition of the challenges posed by the diminishing availability of pennies. Some businesses in the Lynchburg area have already begun rounding totals, while others continue to provide exact change. Vito Carcioppolo, owner of JoJo Pizza, expressed that transitioning to rounding would simplify operations, stating, “Let’s just change this whole system and let’s go to the nearest nickel.” However, not all business owners share this sentiment. Rhonda Rankin, vice president of operations at Texas Inn, voiced concerns about potential bookkeeping complications, emphasizing that even minor discrepancies can accumulate over time. The proposed Virginia bill would not be permanent, with local decisions set to expire on July 1, 2027, allowing for future legislative review.
Broader Implications and Responses
The movement towards rounding laws in both Arizona and Virginia highlights a significant shift in cash transaction practices as the nation grapples with the implications of a penny-less economy. U.S. Representative Lisa McClain, R-Mich., has introduced a federal bill aimed at standardizing rounding practices nationwide to avoid a “confusing patchwork of state policies.” However, this federal legislation has yet to be voted on in the House and would require Senate approval before reaching the President's desk.
Criticism and Opposition
While many businesses and chambers of commerce support the transition to rounding, there are concerns regarding the impact on accounting practices and consumer behavior. Some business owners prefer to continue providing exact change as long as pennies remain available, fearing that rounding could lead to financial discrepancies over time.
Verbatim Quotes
- “With pennies no longer being produced and federal policy not yet in place, Arizona needed a commonsense solution that keeps everyday transactions running smoothly,” — Greater Phoenix Chamber
- “Let’s just change this whole system and let’s go to the nearest nickel.” — Vito Carcioppolo, Owner, JoJo Pizza
- “To me it’s going to be a bookkeeping nightmare,” — Rhonda Rankin, Vice President of Operations, Texas Inn
This evolving landscape of cash transactions reflects broader economic trends and raises questions about the future of currency in everyday commerce.
