The penny is one step closer to becoming a permanent relic of American commerce.
The House on Monday approved bipartisan legislation that would formally end production of the one-cent coin for everyday circulation and establish nationwide rules for rounding certain cash transactions to the nearest nickel.
The Common Cents Act, H.R. 10167, passed by voice vote under suspension of the rules, a procedure generally used for measures with broad bipartisan support. Because lawmakers did not take a recorded roll-call vote, individual members’ positions were not formally documented.
The bill was introduced by House Republican Conference Chair Lisa McClain of Michigan and Democratic Rep. Robert Garcia of California.
It would direct the Treasury Department to permanently stop minting pennies for general circulation while preserving the government’s ability to produce limited quantities for collectors. Existing pennies would remain legal tender and could continue to be used for purchases, debts and taxes.
In practical terms, production has already ended.
The U.S. Mint struck its final circulating penny on Nov. 12, 2025, bringing an end to 232 years of continuous production.
The decision followed years of rising costs that made the penny considerably more expensive to manufacture than its face value.
By the time production stopped, the Mint said each penny cost approximately 3.69 cents to produce. Treasury estimated that eliminating new circulating pennies would save roughly $56 million annually in material costs.
“Today the Mint celebrates 232 years of penny manufacturing,” Acting Mint Director Kristie McNally said during the ceremonial final strike. “While general production concludes today, the penny’s legacy lives on.”
The legislation would effectively make that administrative decision permanent by writing the end of circulating penny production into federal law.
It would not remove the hundreds of billions of pennies already in existence. Treasury has estimated that close to 300 billion remain in circulation, meaning the coins could continue changing hands for years even though no new ones are being produced.
The bill also addresses one of the most immediate problems created by the dwindling supply of pennies: what retailers should do when a cash purchase does not total an amount divisible by five cents.
Under the legislation, businesses unable to provide exact change could round the final cash total to the nearest nickel.
Totals ending in 1, 2, 6 or 7 cents would generally round down, while amounts ending in 3, 4, 8 or 9 cents would round up. Transactions already ending in zero or five cents would remain unchanged.
The rounding provision would apply only to cash transactions when exact change is unavailable.
Credit and debit cards, checks, electronic transfers, gift cards and other non-cash payments would continue to be processed to the exact cent. Businesses that still have pennies available could also continue providing exact change rather than rounding.
The legislation goes beyond the penny.
It would give Treasury authority to develop a less expensive composition for the nickel, provided testing determines that a new version would lower production costs without creating significant problems for vending machines and other coin-processing equipment.
The current nickel is composed of 75% copper and 25% nickel, and it too costs more than its face value to manufacture.
The Federal Reserve would also be directed to develop a nationwide transition strategy for managing the enormous supply of pennies still in circulation. The legislation calls for officials to examine the effects of cash rounding on groups including lower-income consumers, older Americans and people without access to traditional banking services.
Congress has been working on the issue through parallel House and Senate bills.
The Senate approved its version of the Common Cents Act, S. 1525, by unanimous consent on Aug. 7 after adopting substitute language.
The House subsequently passed H.R. 10167 on Sept. 14. The measure was received in the Senate the following day and referred to the Senate Banking, Housing and Urban Affairs Committee.
Because the legislation moving through the two chambers carries separate bill numbers, additional congressional action is still necessary before a final measure can be sent to President Donald Trump for his signature.
This article may contain commentary which reflects the author's opinion.
