Senate Passes Bill to End Penny Production

Congress passed the Common Cents Act, which directs Treasury to stop making 1-cent coins for circulation and lets businesses round cash transactions to the nearest 5 cents. The Senate passed it by unanimous consent, and the bill is now with the President.

The Treasury Secretary must cease penny production for general circulation but may keep making pennies for sale as collector's items. Pennies already in circulation remain legal tender.

When exact change is unavailable, a seller may round a cash total down if it ends in 1, 2, 6, or 7 cents and up if it ends in 3, 4, 8, or 9 cents. Rounding is optional and does not apply to checks, cards, electronic transfers, or other noncash payments.

Rounding in line with the bill does not violate federal, state, or tribal law. It does not excuse noncompliance with minimum wage, overtime, or paid leave rules, and an employer that rounds a cash payment to an employee must round up.

The Federal Reserve Board must report to Congress within 90 days of enactment on how to keep penny supply stable at coin terminals. The Treasury Secretary must assess how penny shortages and rounding affect low-income, older, unbanked, and underbanked consumers.

The bill also contains two other provisions. First, Treasury must notify the House and Senate banking committees at least 60 days before it stops minting any other circulating coin, with a phase-out plan and a briefing within 30 days. Second, the Secretary may prescribe a nickel with a zinc core and a nickel outer layer if testing shows lower production costs and minimal disruption to coin-accepting machines.