Oklahoma Penny Rounding Bill Heads to Governor

Oklahoma penny rounding bill heads to governor

An Oklahoma penny rounding bill is now headed to Governor Kevin Stitt after lawmakers approved legislation establishing how state and local governments would handle cash transactions as the penny continues to disappear from circulation.

The measure, known as the “Oklahoma Common Cents Act,” outlines how cash payments would be rounded to the nearest nickel if penny shortages continue nationwide.

Supporters say the legislation is designed to create consistency for government transactions as production of the penny is phased out.

Oklahoma penny rounding bill changes cash transaction rules

The Oklahoma penny rounding bill would apply only to cash payments made to state and local governments.

Under the proposal:

• Transactions ending in 1 or 2 cents would round down to zero

• Transactions ending in 3 through 7 cents would round to a nickel

• Transactions ending in 8 or 9 cents would round to a dime

The rounding rules would not apply to debit cards, credit cards, checks, or digital payments.

Legislative details on the proposal were published by the Oklahoma Legislature.

Penny shortages linked to federal production changes

The Oklahoma penny rounding bill follows broader national discussions surrounding the future of the one-cent coin.

President Donald Trump moved in 2025 to stop minting new pennies, citing rising production costs.

That decision contributed to penny shortages and prompted multiple states to consider laws governing how cash transactions should be handled moving forward.

Currency production and coin circulation are managed by the United States Mint.

Bill would impact government transactions only

The Oklahoma penny rounding bill would not apply to private businesses.

Instead, the legislation specifically focuses on cash transactions involving state agencies and political subdivisions such as cities and counties.

If signed into law, the measure would take effect Nov. 1, while local governments would have until July 1, 2027, to fully adopt the changes unless Congress acts first.

State legislation awaiting action by the governor is tracked through the Office of the Governor of Oklahoma.

Supporters say law prepares Oklahoma for future changes

Backers of the Oklahoma penny rounding bill say the measure helps Oklahoma prepare for a changing cash economy.

Lawmakers argued the legislation provides a clear and predictable system for handling physical currency transactions if pennies become increasingly difficult to obtain.

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