Summary
Some states in the U.S. are setting rules to handle cash transactions now that new pennies are no longer being made. This change comes after President Trump stopped the production of pennies, citing their high production cost. The shortage of new pennies means people and businesses may have to round cash prices to the nearest five cents.
Key Facts
- The U.S. stopped making new 1-cent coins early last year.
- President Trump announced the end of penny production because it cost 3.7 cents to make each one.
- This decision led to a shortage of pennies last summer.
- States are creating rules for how to round prices because of the penny shortage.
- Rounding to the nearest nickel may be used for cash payments.
- The Treasury Department will keep old pennies in circulation as long as possible.
- Existing pennies must still be accepted for transactions.
- Symmetrical rounding means prices ending in one, two, six, or seven cents will round down; prices ending in three, four, eight, or nine cents will round up.
