Davidson introduces ‘Pennsylvania Common Cents Act’
Bill addresses penny shortage, modernizes cash transactions
Rep. Nate Davidson April 16, 2026 | 9:51 AM
HARRISBURG, April 16 – On Tax Day, state Rep. Nate Davidson, D-Cumberland/Dauphin, announced the introduction of new legislation to help counties, municipalities, and state agencies navigate a growing nationwide coin shortage and improve efficiency in everyday transactions.
The legislation, titled the Pennsylvania Common Cents Act, would allow government entities and public utilities to round cash transactions to the nearest nickel when payments are made using physical currency.
The proposal comes in response to the federal government’s discontinuation of penny production in late 2025, which has led to a shortage of one-cent coins and created challenges for local governments that frequently handle cash payments.
“On a day when Pennsylvanians are thinking about every dollar and cent, it’s clear our systems need to reflect economic reality,” Davidson said. “Local governments and agencies are being put in an impossible position—either absorb losses, overcharge unintentionally, or struggle to make exact change. This legislation provides a simple, fair, and consistent solution.”
Under the bill, any in-person cash transaction conducted by a political subdivision, Commonwealth agency, municipal authority, or public utility would be rounded to the nearest multiple of five cents.
Transactions ending in one, two, six, or seven cents would be rounded down, while those ending in three, four, eight, or nine cents would be rounded up.
The rounding provision would apply only to cash transactions. Payments made by check, credit card, debit card, or electronic transfer would continue to be processed to the exact cent.
“This is about clarity and consistency,” Davidson added. “By establishing a uniform standard, we can eliminate confusion for taxpayers, reduce administrative burden, and ensure fairness across the board—without impacting anyone who pays electronically.”
Several states across the country have begun exploring or implementing similar policies in response to the diminishing circulation of pennies.
Davidson is currently seeking co-sponsors for the legislation and expects it to receive consideration during the current legislative session.
For more information or to request a copy of the bill, contact Davidson’s office.