Why Some Grocery Stores May Start Rounding Up Your Bill

Retailers across the country are running into an unexpected problem: they can no longer make exact change following the U.S. Mint ending the production of the penny. With the smallest coin in short supply, lawmakers and businesses are now weighing whether rounding to the nearest nickel could soon become a routine part of everyday shopping.

President Donald Trump ordered the Treasury Department in February 2025 to stop minting pennies, arguing that the coin costs more to produce than it is worth. That move followed a January recommendation from the Department of Government Efficiency (DOGE), which said that making 4.5 billion pennies in fiscal year 2023 cost taxpayers more than $179 million.

According to the U.S. Mint’s annual report, each penny costed 3.69 cents to produce. Manufacturing ended in November last year, even though the coin remains legal tender and can still be used when shopping in-store nationwide. An estimated 250 billion pennies are still in circulation, according to the American Banking Association.

The Vanishing Penny

While pennies are still legal tender, many retailers say they simply cannot get them. By mid-November, more than 100 of the government’s 165 coin distribution sites across the country were without pennies, according to the Retail Industry Leaders Association, which represents several major shopping chains.

In a November survey of its members, the organization found that six national chains each had more than 1,000 locations where no pennies were available. The shortage has made it difficult for cashiers to give exact change, especially for small purchases.

For customers paying in cash, that can mean awkward moments at the register, either waiting while clerks search for coins or simply being short changed.

The American Bankers Association has also pushed for action from the federal government, saying in an October 2025 letter to Secretary Treasury Scott Bessent and Federal Reserve Chair Jerome Powell that the issue is “creating immediate operational crises that harm financial institutions, businesses, and consumers.”

Congress Considers Rounding Rules

Bipartisan bills have been introduced in Congress that would allow cash transactions to be rounded up or down to the nearest 5 cents. While these proposals have been filed, they have not yet advanced further through the legislative process.

A similar measure has also been introduced in Washington state, which would apply the same 5-cent rounding approach.

State Approaches

Some states are considering alternatives to the standard nickel rounding model.

In Arizona, Republican Senator John Kavanagh is proposing to formalize what is known as “Swedish rounding.” Under this system, if a total ends in 1, 2, 6, or 7 cents, it is rounded down to the nearest nickel. Totals ending in 3, 4, 8, or 9 cents would be rounded up.

Indiana lawmakers have taken a more consumer-friendly approach. A bill there would require that any amount not ending in 0 or 5 be rounded down, rather than up.

However, none of these bills have made it all the way through the legislative process just yet—meaning shoppers still using coins will have to negotiate their own rules at checkouts for the time being.

In a polarized era, the center is dismissed as bland. At Newsweek, ours is different: The Courageous Center—it’s not “both sides,” it’s sharp, challenging and alive with ideas. We follow facts, not factions. If that sounds like the kind of journalism you want to see thrive, we need you.

When you become a Newsweek Member, you support a mission to keep the center strong and vibrant. Members enjoy: Ad-free browsing, exclusive content and editor conversations. Help keep the center courageous. Join today.