By the Ulman Public Policy Team
Cash functions as critical economic infrastructure in the United States. When natural disasters knock out power, or when technical outages take card networks and payment processors offline, cash remains the one payment method that doesn’t depend on connectivity or electricity. In these moments, cash is often what allows businesses to stay open, families to access essentials, and communities to keep functioning when digital systems fail. The aftermath of Hurricane Helene exemplifies the necessity of cash use. After devastating a significant portion of the southeastern United States, credit card networks were disabled along with power and internet outages, causing many merchants to demand cash-only transactions.
The significance of cash to the United States economy has always been evident, and it remains crucial to the daily lives of millions of Americans. An estimated 5.6 million American households are unbanked — many of whom are low-income, lack access to checking and savings accounts, and are unable to make purchases using a card or contactless payment method. For these individuals, cash is their primary means of participating in the economy, and protecting it as a payment option ensures they can continue to acquire the goods and services they need.
In recent years, a growing number of bills at the state and federal level have worked to protect consumers’ right to pay with cash by ensuring its acceptance as a valid form of payment.
State Cash Acceptance Bills
Many state and local governments have taken meaningful steps to enact cash acceptance requirements, and 2026 has seen that trend continue. This year alone, sixteen states introduced cash acceptance legislation in their state legislatures, reflecting a broad and bipartisan interest in consumer payment protections.
On May 26, Maryland joined eight other states, as well as the District of Columbia, in passing cash acceptance requirements. Governor Wes Moore signed HB 191 into law, which will prohibit merchants from refusing cash payments for essential consumer goods in certain in-person retail transactions. The law takes effect October 1, 2026.
While not every cash acceptance bill advanced before state legislatures adjourned this year, lawmakers can reintroduce them next session — and the breadth of 2026 activity suggests the trend will continue.
The Payment Choice Act
Federal cash acceptance legislation is not new. First introduced in 2019 by Rep. Donald Payne Jr. (D-NJ), the Payment Choice Act has been reintroduced in every Congress since. The bill came closest to becoming law in 2022, when it passed the House twice as a floor amendment — once attached to the Financial Services Racial Equity, Inclusion, and Economic Justice Act in June, and again attached to the National Defense Authorization Act in July — though neither vehicle ultimately carried it into law.
In 2025, the House and Senate again introduced companion versions of the Payment Choice Act, which would require retail businesses to accept cash for in-person sales of $500 or less and bar them from charging cash-paying customers a higher price. The House bill, H.R. 1138, was introduced in February 2025 by Reps. John Rose (R-TN-6) and Donald Norcross (D-NJ-1). The Senate companion bill, S. 2326, was introduced in July 2025 by Sens. Kevin Cramer (R-ND) and John Fetterman (D-PA). Both bills remain before their respective committees.