PENNSYLVANIA — The demise of penny production last year potentially could prompt a change that would impact cash transactions in the state.
Citing a nationwide penny shortage, state Rep. Nathan Davidson, a Cumberland County Democrat, said he wants to solve a problem that he contends has created a challenge for counties and local governments that collect a variety of state fees and revenues.
“Many Pennsylvanians prefer to pay in cash, and the penny shortage has made it difficult to provide change to the nearest cent,” Davidson said in a memo to colleagues recently. “Since many of these fees are set in statute, counties and local governments have no flexibility and are left with no good choices.
“For this reason, I will be introducing legislation that would allow cash transactions to be rounded to the nearest nickel.”
In February 2025, President Donald Trump cited the high manufacturing cost of producing a single penny – 3.7 cents in 2024 – and called for its demise. The penny subsequently was pronounced dead after 233 years.
Many retailers are already voluntarily rounding up or down in cash transactions. But the legislation would help the state officially remain in compliance with SNAP regulations and supercede the laws of local municipalities that do not embrace rounding policies.
Davidson’s proposed legislation, which has not yet been introduced in the House, would not apply to electronic transfers, checks, debit card, or credit card transactions.