Say goodbye to the penny—but what happens to your change? With the U.S. penny officially phased out since late 2025, a new challenge has emerged: how do businesses handle cash transactions without that once-ubiquitous coin? But here’s where it gets controversial... One Washington lawmaker is stepping in with a proposal that could change how you pay for your morning coffee—and not everyone is on board.
Representative April Berg (D-Mill Creek) has introduced House Bill 2334, aiming to bring clarity to cash transactions in the state. The federal government has yet to provide guidance on how to handle rounding without pennies, leaving businesses and consumers in a gray area. And this is the part most people miss... Without clear rules, cash-only businesses risk confusion, errors, and even disputes over how to round transactions fairly.
Berg’s bill proposes asymmetrical rounding to the nearest nickel, a system designed to balance fairness for both consumers and businesses. Here’s how it would work:
- Totals ending in 1 or 2 cents would round down to 0 cents.
- Totals ending in 3, 4, 6, or 7 cents would round to 5 cents.
- Totals ending in 8 or 9 cents would round up to 10 cents (or effectively to the next nickel).
This approach ensures that neither party is consistently disadvantaged. For example, if your purchase totals $1.02, it would round down to $1.00, while $1.07 would round up to $1.10. But is this system truly fair? Some argue that rounding could disproportionately affect low-cost items, while others worry it might complicate transactions unnecessarily.
Importantly, electronic payments—credit cards, debit cards, and digital wallets—would remain unaffected. The bill also addresses hybrid transactions, where cash is combined with other payment methods, by directing state departments to establish clear, consistent rules for businesses.
“By codifying rounding in state law, we can prevent confusion, reduce errors, and help businesses transition smoothly,” Berg explained. But the question remains: Is this the best solution, or are we overlooking simpler alternatives?
The bill is set to hit the Capitol floor in Olympia on January 12, 2026, as part of the new legislative session. Here’s where you come in... What do you think about rounding cash transactions to the nearest nickel? Is it a practical fix, or does it create more problems than it solves? Let us know in the comments—this debate is far from over!
