House unanimously votes to eliminate one-cent coin permanently

U.S. Congress Passes Bill to End Production of the Penny and Mandate Cash Rounding

In a unanimous vote, the U.S. House of Representatives approved the Common Cents Act, a bipartisan measure that will end the minting of the one‑cent coin and establish a new cash‑transaction framework that rounds amounts to the nearest five cents. The legislation, led by Republican House GOP Conference Chair Lisa McClain of Michigan and Democratic Representative Robert Garcia of California, was adopted on Monday and is poised to take effect if signed by the President.

What the Act Does

• Halts Future Minting of Pennies
  The bill instructs the Treasury Department to stop producing new pennies, except for limited collector coins. Existing pennies will remain legal tender for the foreseeable future.
• Introduces Cash Rounding
  All cash transactions will be rounded to the nearest five‑cent increment. For example, a $12.38 purchase would be rounded to $12.40.
• Exception for Cash Wages
  Employers must round cash wages upward if the total is not divisible by five cents, ensuring employees receive full amounts.
• Nickel Material Change
  The U.S. Mint will be authorized to use cheaper materials for nickels.
• Monitoring Potential Impacts
  The Treasury will study how the changes affect low‑income consumers, older adults, and the “debanked” population, among other groups.

Rationale Behind the Move

The cost of minting pennies has risen dramatically in recent years. As of 2025, producing a penny costs more than three times its face value. Treasury officials estimate that ending the penny’s production would save the federal government about $56 million in the first year alone. The law is intended to eliminate waste and streamline cash handling while also preventing the re‑introduction of the coin under a future administration.

Legislative History

The Common Cents Act builds on a prior bill that also directed the federal government to stop minting pennies but omitted provisions for cash rounding. McClain’s earlier effort had passed the Senate, while the current bill now includes the rounding mechanism and additional safeguards.

Next Steps

The bill now moves to the Senate for consideration. If both chambers agree, it will be sent to the President for signature. The legislation is designed to be permanent, meaning that unless a future Congress takes action, the penny will not return to circulation.

Congressional Support

The unanimous vote underscores bipartisan consensus on the issue. House Democrats and Republicans alike cited the rising production costs and the desire for a more efficient currency system as key reasons for backing the bill.

Potential Effects on Consumers

While the measure aims to streamline transactions, lawmakers have recognized the possibility of minor disruptions. Treasury officials will monitor how rounding affects vulnerable populations, including those on fixed incomes and those who rely on exact cash exchanges. The Act’s monitoring provisions are intended to identify and address any unintended consequences promptly.

Summary

The Common Cents Act marks a significant shift in U.S. currency policy, ending a 232‑year tradition of penny circulation and introducing a new standard for cash payments. With bipartisan support and a clear cost‑savings rationale, the bill reflects a broader trend toward modernizing the nation’s monetary system. Its passage would not only reshape everyday transactions but also set a precedent for future decisions about which coins remain in circulation.