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HR 3074119th CongressIntroduced
Common Cents Act
Introduced: Apr 29, 2025
Sponsor: Rep. McClain, Lisa C. [R-MI-9] (R-Michigan)
Economy & TaxesFinancial Services
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Common Cents Act would (1) halt production of the one-cent coin for general circulation, while allowing pennies to be produced and sold as collectibles, and (2) require cash transactions to be rounded to the nearest five cents. It also revises the specifications for the five-cent coin, giving the Secretary of the Treasury flexibility to alter its composition (potentially using an inner zinc layer with an outer nickel layer) to reduce production costs, and it allows the Secretary to redefine the 5-cent coin’s weight and composition as part of this change. Existing pennies minted before enactment would remain legal tender, but future pennies would not be produced for everyday use.
Key Points
- 1Elimination of the penny for general circulation: The Secretary shall cease production of one-cent coins for daily use; pennies can still be minted and sold as numismatic items, and coins already produced remain legal tender.
- 2Rounding of cash transactions: Cash purchases would be rounded to the nearest five cents, affecting how customers pay and how retailers handle cash transactions.
- 35-cent coin redesign: The 5-cent coin may consist of an inner layer of zinc and an outer layer of nickel, with the Secretary setting the exact zinc/nickel composition to lower costs. The coin’s weight can also be adjusted within specified ranges to support cost reductions.
- 4Flexible composition and weight: The bill allows different possible compositions and weights for the 5-cent coin, moving away from a fixed copper-nickel standard toward cost-efficient options.
- 5Scope and transition: The bill focuses on minting and cash handling changes and would not automatically alter non-cash payment methods; it does not lay out a detailed transition timeline in the text provided.
Impact Areas
Primary group/area affected: American consumers who use cash for everyday purchases, and retailers/Vendors that handle cash transactions.Secondary group/area affected: The U.S. Mint and the production/issuance of coins, coin-operated machines (vending machines, parking meters, etc.), and banks or financial institutions involved in cash handling.Additional impacts: The coin-collecting and numismatic market (due to continued sale of pennies as collectibles), price-setting dynamics due to rounding, potential administrative and implementation costs for rounding systems and coin handling, and possible budgetary implications from changes in production and seigniorage.
Generated by gpt-5-nano on Oct 7, 2025