Common Cents Act

The Common Cents Act would direct the U.S. Treasury to stop minting new pennies for general circulation, though existing pennies would remain legal tender and the Treasury could still produce pennies as collectible items. It also sets rules for rounding cash transactions to the nearest 5 cents when exact change isn't available, updates the composition rules for 5-cent coins, and adds a process (advance notice and a briefing to congressional committees) before the Treasury can discontinue any other circulating coin in the future.

The bill affects anyone who pays or receives cash in transactions, including retail businesses, financial institutions, and employers making cash payments to employees. It sets specific rounding rules — generally down for totals ending in 1, 2, 6, or 7 cents, and up for totals ending in 3, 4, 8, or 9 cents — and shields businesses that follow these rounding practices from being found in violation of other federal, state, or tribal laws for doing so, though it does not override minimum wage, overtime, or paid leave requirements. It only applies to cash transactions, not card, check, or electronic payments. The bill also requires the Federal Reserve to study and report on the impact of ending penny production, including effects on low-income, older, and unbanked or underbanked consumers.

The bill passed the Senate by unanimous consent on August 7, 2026, with an amendment. It now goes to the House of Representatives, which would need to pass it (either as amended or in a reconciled version) before it could go to the President to be signed into law.

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