Washington establishes new cash rounding rules to address penny shortage
By Dan Thesman on Wednesday, March 25th, 2026 in Columbia Basin News Columbia Basin Top Stories
OLYMPIA – Gov. Bob Ferguson signed House Bill 2334 into law Monday, establishing Washington’s first formal guidelines for cash transactions amid a dwindling supply of pennies.
The legislation addresses a lack of federal guidance following the discontinued production of the 1-cent coin. Under the new rules, Washington businesses must apply asymmetrical rounding to the nearest 5-cent increment for cash payments.
Transactions ending in 1 or 2 cents will round down to the nearest zero, while totals ending in 3, 4, 6, or 7 cents will round to the nearest nickel. Totals ending in 8 or 9 cents will round up to the next 10-cent interval.
State officials noted that the law is designed to provide predictability for consumers and clear operational standards for retailers. The rounding mandate applies exclusively to physical currency; electronic payments, including credit and debit cards, remain unaffected and will be processed at exact totals.
File photo of 2024 Penny via U.S. Mint at Philadelphia
