The U.S. Senate has unanimously approved the Common Cents Act, marking a rare moment of bipartisan agreement in Congress. The legislation formally ends production of circulating pennies, establishes rules for rounding cash transactions, and gives the Treasury Department authority to develop a cheaper nickel.
The measure follows the U.S. Mint’s decision to stop producing pennies for general circulation. Existing pennies will remain legal tender, meaning Americans can continue using the estimated 300 billion pennies already in circulation. The bill also seeks to make cash purchases easier by allowing businesses to round transactions to the nearest five cents. For example, a $19.82 purchase could become $19.80, while $19.83 could become $19.85. The rounding provisions apply only to cash payments and would not affect credit cards, checks, or electronic transactions.
Another major focus is the nickel, which has become increasingly expensive for the government to produce. In fiscal year 2025, producing one five-cent coin reportedly cost 13.31 cents. The legislation therefore authorizes the Treasury to test a new nickel composition using zinc and nickel, provided the alternative is cheaper and does not interfere with vending machines, parking meters, coin counters, or other equipment that accepts coins.
Supporters argue that the measure could reduce unnecessary government spending while eliminating confusion caused by different state and local rules governing cash rounding. By establishing a consistent national framework, retailers and consumers would have clearer expectations when pennies become less common.
The legislation does not eliminate the nickel. Instead, it seeks to make the five-cent coin less expensive to manufacture. A separate proposal to abolish the nickel remains pending in the House.
The Senate’s unanimous approval highlights the unusually broad support for reducing the cost of U.S. coin production. If signed into law, the Common Cents Act would represent a practical overhaul of America’s smallest denominations, potentially saving taxpayer money while simplifying cash transactions for businesses and consumers.
