Please ensure Javascript is enabled for purposes of website accessibility Pennsylvania Common Cents Act passes House

Pennsylvania Common Cents Act passes House

Pennsylvania House Democratic Caucus    June 24, 2026 | 2:47 PM

HARRISBURG, June 24 – Today, state Rep. Nate Davidson, D–Dauphin/Cumberland, announced that his legislation to help Pennsylvanians navigate the ongoing nationwide penny shortage has taken a major step forward. House Bill 2388, officially titled the Pennsylvania Common Cents Act, was voted out of the House of Representatives with a bipartisan vote of 187-15.

The legislation gives clarity and predictability to businesses, government agencies, municipalities and public utilities by allowing them to round face-to-face cash transactions to the nearest nickel in the event that they have no pennies to give exact change. The proposal comes in response to the federal government’s discontinuation of penny production in late 2025, which has created penny shortages across the Commonwealth.

 

“When the federal government makes a change, the states need to be ready to react in a way to provide clarity and simplicity to our constituents,” said Davidson. “This is a simple fix. For those Pennsylvanians who choose to pay with cash, this bill gives those individuals, as well as the business or government entity behind the cash register, a plain and predictable response to the penny shortage.”

Under the bill, when a cash grand total (including sales tax) ends in 1, 2, 6 or 7 cents, it rounds down to the nearest multiple of five. Transactions ending in 3, 4, 8 or 9 cents round up. However, the amended bill introduces several crucial taxpayer and consumer protections:

  • Account Crediting Required: Any entity that rounds a payment up must apply that rounded-up amount as a credit to the customer or ratepayer’s account balance.
  • Exact Change Exemption: Rounding does not apply if the consumer provides the exact cash total, or if the government agency or business is able to provide exact change.
  • Microtransactions: Small-scale cash transactions totaling less than 5 cents will automatically round up to a nickel.
  • Tax Integrity: Sales tax calculations remain completely unaffected and will be computed to the exact cent before any cash rounding occurs.

Importantly, the rounding provision applies strictly to physical cash transactions. Payments made via credit card, debit card, check, electronic transfer, mobile pay, or gift cards will continue to be processed to the exact cent.

“This uniform standard eliminates confusion at the cash register, reduces administrative strain, and ensures total fairness,” Davidson added. “Everyone benefits when we operate on a level playing field, and this new consumer-first guardrail gives Pennsylvanians protections to businesses, consumers, and our local governments when they engage in cash transactions.”

The bill now awaits consideration in the Senate.