Oregon Passes Bill to Round Cash Transactions After Penny Shortage

New law allows rounding to nearest nickel for cash purchases as federal government stops minting pennies.

Mar. 7, 2026 at 7:00am

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The Oregon Legislature has passed a bill that will allow businesses to round cash transactions to the nearest five cents, following the federal government's decision to stop minting pennies. The bill, requested by the Northwest Grocery Retail Association, is meant to provide clarity for businesses that are struggling to obtain pennies for cash transactions. The legislation includes an exception to Oregon's cash acceptance laws and requires businesses that adopt the rounding policy to notify customers.

Why it matters

The lack of federal guidance on the penny shortage has disproportionately impacted rural communities, small businesses, and low-income consumers who rely more on cash transactions. This new law aims to create a consistent, statewide policy to address the issue and provide transparency for both businesses and customers.

The details

House Bill 4178 passed the Oregon Senate with a 26-2 vote. It will allow cash purchases ending in 1, 2, 6 or 7 cents to be rounded down, and purchases ending in 3, 4, 8 or 9 cents to be rounded up to the nearest nickel. Businesses that choose to adopt the rounding policy must apply it consistently and post notices to customers. The bill also allows government agencies to develop their own rounding systems for cash payments.

  • The federal government stopped minting pennies in the fall of 2025.
  • The Oregon Senate passed House Bill 4178 on March 6, 2026.
  • The bill will take effect immediately after being signed by Governor Tina Kotek.

The players

House Bill 4178

The Oregon legislation that allows businesses to round cash transactions to the nearest nickel.

Northwest Grocery Retail Association

The industry group that requested the bill, citing struggles for businesses to obtain pennies for cash transactions.

Tina Kotek

The Governor of Oregon, who is expected to sign the bill into law.

Amanda Dalton

A lobbyist and president of the Northwest Grocery Retail Association, who testified in support of the bill.

Pam Leavitt

A lobbyist for credit unions, who testified that the penny shortage disproportionately affects rural communities, small businesses, and low-income consumers.

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What they’re saying

“Especially for our independent grocers, I'm getting a lot of phone calls. The penny's still in circulation, but they have been told the last couple of months from their banks that they're no longer providing them.”

— Amanda Dalton, Lobbyist and President, Northwest Grocery Retail Association

“The lack of guidance on pennies is also disproportionately affecting rural communities, small businesses and low-income consumers, as these populations are more likely to use cash transactions.”

— Pam Leavitt, Lobbyist for Credit Unions

What’s next

Governor Tina Kotek is expected to sign the bill into law, which will take effect immediately.

The takeaway

This new law in Oregon aims to provide a consistent, statewide solution to the federal government's decision to stop minting pennies, helping businesses and consumers adapt to the change, especially in rural areas and low-income communities that rely more on cash transactions.