Full Breakdown
House Passes Common Cents Act to End Penny Production
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Legislative Details and Rounding Framework
The U.S. House of Representatives approved the bipartisan Common Cents Act in a unanimous vote. The legislation would prohibit the Treasury from minting new 1-cent coins, except for collector issues, and would establish a system for rounding cash transactions to the nearest five cents. An exception requires cash wages that are not divisible by five cents to be rounded upward. The bill also authorizes the U.S. Mint to produce nickels using cheaper materials. House GOP Conference Chair Lisa McClain (R-MI) and Representative Robert Garcia (D-CA), the top Democrat on the House Oversight Committee, are identified as the bill’s primary sponsors.
Economic Rationale and Projected Savings
The Treasury has reported that the cost of producing pennies now exceeds three times their face value, a situation that intensified after the Mint ceased regular penny production in November 2025, ending a 232-year run. According to a Treasury press release, the immediate annual savings from halting penny minting are estimated at $56 million.
Oversight and Potential Impacts on Consumers
The act directs the Treasury to monitor how the rounding rule affects low-income households, older consumers, and individuals without bank accounts. By tracking these effects, Congress aims to address concerns that rounding could disproportionately burden vulnerable groups.
Next Steps
The legislation now moves to the Senate for consideration. If the Senate approves the bill and President Donald Trump signs it, the rounding framework would become law, cementing the cessation of penny production for future administrations.