The Premium Cigar Association (PCA) is encouraging its members to support H.R. 3074, a bill currently under consideration in the U.S. Congress that aims to eliminate the penny from cash transactions. This legislation proposes that the U.S. Treasury Department cease minting the penny and round cash transactions to the nearest five cents instead.
In the email, PCA stated its position as follows:
“Our members operate neighborhood brick-and-mortar businesses where customer service, efficiency, and convenience matter. Cash transactions that require counting pennies slow checkout, increase cash handling, and create unnecessary friction for both retailers and consumers. This bill provides a simple administrative improvement without changing the prices businesses choose to charge. We encourage every PCA member to contact their U.S. Representative and ask them to support H.R. 3074, the Common Cents Act. Small businesses deserve policies that reduce unnecessary costs and improve operational efficiency.”
Under the new legislation, cash transactions ending in one, two, six, or seven cents will be rounded down to the nearest multiple of five cents. Conversely, transactions that end in three cents, four cents, eight cents, or nine cents will be rounded up to the nearest amount that is divisible by five. For smaller transactions of one or two cents, the amount will be rounded up to five cents. It’s important to note that this rounding policy does not apply to checks and electronic transactions, such as credit cards, gift cards, electronic transfers, and money orders.
Representative Lisa McClain of Michigan introduced the bill. Senator Cynthia Lummis of Wyoming introduced the companion Senate bill, S. 1525.
In February 2025, U.S. President Donald Trump instructed the Treasury Department to suspend the production of U.S. pennies due to high production costs. Currently, the penny remains legal tender, and it would require an act of Congress to eliminate it. However, the Treasury Secretary has the authority to halt penny production. If new legislation is passed, it will formalize the elimination of the penny and outline how cash transactions will be conducted moving forward.
Image Credit: U.S. Mint (Public Domain)
