A bill for an act relating to rounding the amount of cents for cash transactions and payments.(Formerly SSB 3143.)

Iowa Senate File 2456 (SF2456) proposes a system for rounding cash transaction totals to the nearest five cents, following the U.S. Mint's suspension of penny production on November 12, 2025. Under this bill, cash transactions ending in 1, 2, 6, or 7 cents may be rounded down, while those ending in 3, 4, 8, or 9 cents may be rounded up. Transactions totaling 1 or 2 cents must be rounded up to 5 cents. This rounding applies only to cash transactions and does not affect payments made via checks, electronic transfers, credit cards, or similar methods.

Supporters of SF2456 argue that the bill simplifies cash transactions by eliminating the need for pennies, thereby streamlining the payment process for both consumers and businesses. They also highlight potential cost savings associated with the cessation of penny production and handling.

Critics of the bill express concerns that the rounding system could lead to minor financial losses for consumers over time, particularly if businesses consistently round prices upward. Additionally, there is apprehension about the potential for confusion during the transition period as both consumers and businesses adapt to the new rounding rules.