The Common Cents Act would, within one year of enactment, end the production of the U.S. penny (1-cent coin) with a limited collector exception and set a nationwide rule to round cash transactions to the nearest 5 cents. Specifically, pennies would no longer be minted for general circulation, though one-cent coins could still be produced and sold only to meet collectors’ needs, with sales regulated to ensure net receipts cover production costs. At the same time, cash transactions (including cash wages) would be rounded to the nearest 5 cents according to defined rules, while non-cash payments would be exempt from rounding. The bill preserves legal tender status for all coins and currency. The goal is to reduce costs and eliminate the penny while maintaining practical payment mechanics for everyday transactions.
Key Points
- 1Elimination of penny production: The Secretary of the Treasury would stop minting and issuing 1-cent coins within a year, with a collector-only exception for future pennies, sold under existing numismatic rules, and only if net receipts cover production costs.
- 2Legal tender unaffected: All U.S. coins and currency remain legal tender for debts and payments, regardless of when coins were issued.
- 3Cash transaction rounding: Cash transactions (sales, cash wages, etc.) must be rounded to the nearest 5 cents. Rounding down applies to final digits 1, 2, 6, or 7; rounding up applies to final digits 3, 4, 8, or 9.
- 4Special rounding exceptions: If the total is exactly 0.01 or 0.02, it must be rounded up to 0.05; non-cash payments (checks, electronic transfers, credit cards, gift cards, etc.) are exempt from rounding.
- 5Effective date: The rounding and penny elimination provisions take effect one year after enactment.