The House of Representatives has approved a bipartisan measure, H.R. 10167, known as the Common Cents Act, which seeks to make permanent the U.S. Mint's decision to halt penny production and introduce a system for rounding cash transactions. The legislation, passed on Monday under a suspension of the rules, a procedure often used for bills with broad support, also grants the Treasury Department authority to develop a more cost-effective nickel.
"Today the Mint celebrates 232 years of penny manufacturing. While general production concludes today, the penny’s legacy lives on." Kristie McNally, Acting Mint Director
The move by Congress follows the U.S. Mint's cessation of general penny manufacturing on November 12, 2025, after 232 years of production. Acting Mint Director Kristie McNally marked the occasion, stating, "Today the Mint celebrates 232 years of penny manufacturing. While general production concludes today, the penny’s legacy lives on." The Mint's decision was primarily driven by economic factors, as the cost to produce each penny had reached approximately 3.69 cents. The Treasury Department projected that ending penny production would yield annual savings of roughly $56 million in material costs.
The Common Cents Act aims to codify this halt, permanently stopping the production of pennies for general circulation. However, it would still allow the Treasury to strike small quantities of pennies for collectors. Critically, the nearly 300 billion pennies already in circulation would retain their value and remain legal tender for purchases, debts, and taxes.
The most noticeable change for consumers under the proposed legislation would occur at the checkout counter. Businesses unable to provide exact change for cash sales would be permitted to round the final total to the nearest five cents. The rounding mechanism dictates that totals ending in 1, 2, 6, or 7 cents would round down, while those ending in 3, 4, 8, or 9 cents would round up. For example, a $4.12 total would become $4.10, and a $4.13 total would become $4.15. Totals ending in zero or five cents would remain unchanged. This rounding provision specifically applies only to cash payments where exact change is unavailable. Non-cash payment methods, such as credit cards, debit cards, checks, electronic transfers, and gift cards, would continue to settle to the exact cent. Moreover, merchants who possess pennies would retain the option to provide exact change rather than applying the rounding rule.
Beyond the penny, the bill also addresses the five-cent coin. It empowers the Treasury Department to research and develop a cheaper nickel. This initiative comes as the current nickel, composed of 75% copper and 25% nickel, also costs more to manufacture than its face value. Any new nickel design would need to undergo testing to ensure cost reduction without creating significant issues for vending machines and other coin-processing equipment that rely on the coin's specifications.
The legislation assigns an important role to the Federal Reserve, directing it to devise a comprehensive nationwide strategy for managing the transition away from general penny circulation. This strategy would include handling the vast supply of pennies currently in use. Furthermore, the bill mandates that officials examine the potential effects of cash rounding on various demographic groups, including lower-income consumers, older Americans, and individuals who do not have access to traditional banking services. This consideration highlights a focus on mitigating any unintended negative impacts of the policy change.
The House's passage of H.R. 10167 follows action in the Senate, which passed its own version of the legislation, S. 1525, by unanimous consent on August 7, after adopting substitute language. With the two chambers passing measures under different bill numbers, further legislative steps are required. The Senate received H.R. 10167 from the House the day after the House vote and referred it to the Banking, Housing and Urban Affairs Committee. Before a final version can reach President Donald Trump for his signature, Congress must reconcile the differences between the two bills and pass an identical measure.
