CONGRESS MOVES CLOSER TO FORMALLY AXING THE PENNY AND OVERHAULING THE NICKEL UNDER NEW BILL
The United States is taking major steps toward formally ending the era of the penny. Following a Senate vote this week, the House of Representatives passed the Common Cents Act, clearing the legislative path to address the nation’s changing currency landscape.
While the U.S. Mint already stopped producing regular circulation pennies, this legislation introduces critical updates for cash-paying consumers and sets the stage for potential changes to the nickel.
Key Highlights of the Common Cents Act:
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The Formal End of the Penny: The bill legally codifies the discontinuation of penny production, though existing one-cent coins and commemorative collector editions remain legal tender.
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Legal Cash Rounding: To help businesses manage a lack of pennies, the bill permits retailers to round cash transactions to the nearest nickel (e.g., $19.82 becomes $19.80, and $19.83 becomes $19.85), ironing out conflicting state and local laws. Digital, card, and SNAP EBT transactions are unaffected.
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A Cheaper Nickel Recipe: Because producing a single nickel has cost well above its five-cent face value for two decades—reaching 13.31 cents in fiscal year 2025—the bill authorizes the Treasury Secretary to test cheaper alternatives, such as a zinc-and-nickel composition, provided it works smoothly with coin-acceptance machines.
With identical versions moving successfully through both chambers, the bill awaits final alignment and enactment to officially reshape modern American cash transactions.
