The U.S. House of Representatives passed the Common Cents Act this week. The move ends years of losses at the mint. It sets nationwide rules for rounding cash purchases to the nearest nickel. And it directs the Treasury to stop producing one-cent coins for circulation.
Production of the penny already halted in late 2025. Each one cost nearly four cents to make. Taxpayers footed the bill for that gap. Now lawmakers want to formalize the shift. The bill, H.R. 3074, passed by voice vote on July 14, 2026, according to a Time report. It heads to the Senate next.
Rep. Lisa McClain, a Michigan Republican who sponsored the measure, celebrated the vote. “After 19 years of losing money minting pennies, we’re done,” she posted on X. “My Common Cents Act has passed the House, ending the wasteful production of a coin that nobody uses.” In floor remarks she added, “This is a straightforward bill that accomplishes one common sense goal.”
Her Democratic co-sponsor, Rep. Robert Garcia of California, joined in the bipartisan push. Industry groups quickly praised the action. Evan Armstrong, senior vice president of government affairs at the Retail Industry Leaders Association, said in a statement carried by Time, “The House recognized the need for certainty to protect cash transactions, support consistency across the country, and resolve an issue that has been negatively impacting millions of businesses nationwide.”
The Penny’s Long Decline
The penny’s troubles run deep. Inflation eroded its buying power for decades. Production expenses climbed. By the early 2000s the Mint lost money on every coin struck. The final batch rolled out in late 2025. Yet pennies still circulate. Banks and businesses hoard them. Consumers dig through drawers for exact change.
Without legal cover, retailers face headaches. Some worry about liability if they round transactions. Sean Kennedy, chief advocacy officer at the National Restaurant Association, explained the problem in Yahoo Finance. “Phasing out the penny has been cumbersome for some businesses. He said restaurants and retailers can face legal liability if they cannot provide exact change, even when they round in the customer’s favor.”
Restaurants feel the pinch. One in four customers still pay with cash. The association estimates those transactions generate $168 million a year in extra costs from handling, counting and storing coins. That’s real money. It adds up at scale. The Common Cents Act aims to cut that burden. It lets businesses round without fear. It keeps the penny legal tender. Its face value stays one cent. Collectors can still buy special versions from the Mint.
Rounding follows simple math. Cash totals ending in 1, 2, 6 or 7 cents round down to the nearest nickel. Those ending in 3, 4, 8 or 9 cents round up. Amounts already at 0 or 5 cents stay exact. The rule applies only to cash. Card, app and digital payments use the full amount. Sales tax and shelf prices remain unchanged. Receipts show the original total before rounding.
But. Critics raise concerns. Some shoppers lose a cent here or there. Others gain. Over many purchases it might balance. Yet trust matters. Older Americans who rely on cash could feel shortchanged. Low-income households use currency more often. They might notice the difference.
Businesses split too. Large chains already round informally in some locations. Small shops lack systems to track it cleanly. The new law gives them cover. It creates uniformity. No more patchwork city rules or customer complaints. Still, implementation will test retail operations. Cashiers need training. Registers might require updates. And old pennies won’t vanish overnight. They stay in circulation until worn out or withdrawn.
The bill also orders the Treasury to study a cheaper nickel. Current five-cent coins cost more than five cents to produce. Redesign could cut metal content or switch alloys. Details come later. For now the focus stays on the penny’s exit.
Recent coverage highlights the stakes. A CBS News report from four days ago notes the act responds directly to the Mint’s decision to stop penny output. It quotes experts who say clear rules prevent confusion at checkout. Another piece in WJHL published hours ago describes customer frustration when exact change runs short. Both outlets stress that pennies keep their value. The change targets production and transaction mechanics only.
Supporters point to other countries. Canada phased out its penny in 2013. Rounding rules there caused little lasting disruption. Prices didn’t jump. Cash use declined anyway as cards rose. The U.S. follows a similar path. Digital payments dominate. Yet roughly 20 percent of transactions remain cash, especially in food service and small retail. The Common Cents Act protects those channels.
Opponents argue symbolism counts. The penny carries history. Lincoln’s profile. “In God We Trust.” Some see its end as inflation’s quiet victory. Others call the savings modest. The Mint’s annual loss ran about $80 million to $100 million in recent years. Not nothing. But hardly a budget saver. The real win lies in reduced handling costs for private businesses.
So what happens if the Senate passes the measure? President Trump would likely sign it. The administration has shown little attachment to outdated coinage. Treasury officials already signaled support for ending penny production. Once law, the framework takes effect quickly. Guidance from federal agencies would follow within months.
Longer term the shift accelerates cash’s decline. Fewer coins mean simpler tills. Faster lines. Lower theft risk from coin weight. Banks save on armored transport. Yet the change also signals something larger. Fiat currency evolves. Its smallest unit becomes obsolete. Digital alternatives fill the gap. Stablecoins, mobile wallets and card taps handle micro amounts without metal.
Even so, cash lingers. In rural areas. Among older citizens. During power outages. The Common Cents Act doesn’t ban pennies. It stops making new ones. Existing coins retain full legal status. Hoarders can spend them at face value. Over time supply shrinks. Nickels and dimes take more load.
Industry groups want swift Senate action. The National Restaurant Association and retail leaders see relief. They spent years lobbying for this clarity. Now momentum builds. Bipartisan votes in the House suggest the bill enjoys broad support. Senate passage could come before summer recess.
Consumers face adjustment. Next time a $9.97 bill ends in two cents, it might drop to $9.95 in cash. Or rise from $9.98 to $10.00. The difference feels tiny. Yet habits die hard. Some stores may advertise “exact change appreciated” to avoid rounding. Others will embrace it for speed.
The Mint gains flexibility. It can focus resources on higher denomination coins and collector products. Research into durable, low-cost alloys for nickels moves forward. Congress gave explicit direction. That alone marks progress after years of half-measures.
Critics on social media call it symbolic. One X user wrote, “devaluing currency just like rome.” Another celebrated, “smart cost-cutting.” The debate mixes economics with nostalgia. Data favors the change. Losses at the Mint were clear. Customer behavior already shifted away from pennies. Legal protection simply catches policy up to reality.
Passage of the Common Cents Act marks a pragmatic step. It trims waste. It reduces friction in daily commerce. It accepts that one cent no longer pays its way. The Senate now decides whether that logic prevails nationwide. If it does, the penny’s story ends not with a bang but with a quiet rounding to five.
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