The House of Representatives has unanimously passed the Common Cents Act, a bipartisan bill that would permanently eliminate the one-cent coin from circulation. The legislation, which now heads to President Donald Trump for his signature, also establishes a framework for rounding cash transactions to the nearest five cents.
The US Mint ceased producing pennies in November 2025, after 232 years of circulation. The cost to mint pennies has significantly exceeded their face value in recent years, with production costing more than three times the value of a cent. The Treasury Department estimates that ending penny production will result in immediate annual savings of $56 million.
Under the proposed act, the Treasury would be prohibited from minting new pennies, with an exception for collector's coins. Cash transactions would be rounded to the nearest nickel, though wages paid in cash would be exempt from this rounding if the total is not divisible by five cents. Existing pennies will continue to be legal tender.
The bill was championed by House GOP Conference Chair Lisa McClain of Michigan and Representative Robert Garcia of California, the ranking Democrat on the House Oversight Committee. This effort builds upon previous legislation led by McClain that passed the Senate but lacked provisions for rounding cash payments.
In addition to ending the penny, the Common Cents Act would permit the US Mint to produce nickels using less expensive materials than currently utilized. The Treasury will be tasked with monitoring the impact of these changes on various consumer groups, including low-income individuals and older adults, to assess any disruptions caused by the new rounding rules.