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119-hr-3074119th CongressWALLET

Common Cents Act

Sponsored By: Representative McClain, Lisa C. [R-MI-9]

Passed House

Summary

End penny production for general circulation while preserving pre-enactment pennies as legal tender and allowing collectible one-cent coins. It would let the Treasury authorize a zinc–nickel inner/outer 5-cent design to lower production costs and create a nationwide cash rounding system that moves cash totals to five-cent increments under set rules.

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  • Households and cash users will see totals or change rounded to the nearest 5 cents when exact change is not available. Non-cash payments like cards, checks, gift cards, and electronic transfers are not subject to rounding.
  • Merchants and cash-handling businesses can use the prescribed rounding mechanics and may choose rounding that favors customers in some cases. The law lets the Secretary set nickel compositions to reduce costs and to limit problems for coin-accepting machines.
  • The Federal Reserve must submit a strategic plan within 90 days and follow-up reports at 6, 18, and 30 months. Those reports must assess penny supply, distribution stress, and effects on low-income, older, unbanked, and underbanked populations.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

End penny production and plan transition

If enacted, the Mint would stop making pennies for everyday use, but could sell new pennies to collectors. All pennies made before enactment would stay legal tender. Treasury would send the Federal Reserve an impact assessment at least 60 days after enactment. The Federal Reserve would publish a public plan within 90 days, then report again 6, 18, and 30 months after the first report. Reports would go to the House Financial Services and Senate Banking Committees.

Test cheaper metals for the nickel

If enacted, Treasury could change the nickel’s metals and weight to cut costs after testing. A nickel could remain a 5‑gram copper‑nickel alloy, or weigh 4 to 6 grams with a zinc core and nickel outer layer. Any change would require tests showing savings and, as much as possible, little harm to coin‑accepting machines.

Cash wage rounding favors workers

If enacted, when an employer pays wages in cash and chooses to round, the cents would be rounded up to the next $0.05. If the employer pays the exact amount, no rounding would occur. This would give workers up to four extra cents per rounded cash payment.

Nationwide rounding rules for cash purchases

If enacted, cash totals would be rounded to the nearest $0.05 only when exact change is not available. The amount used for rounding would be the tax‑included total, or if you pay more cash than the total, the change due. Endings of 1, 2, 6, or 7 cents would round down; 3, 4, 8, or 9 cents would round up; 0 or 5 would stay the same. Amounts of $0.01 or $0.02 would round up to $0.05. These rules would not apply to cards, checks, or electronic payments, and no one would be required to round. Businesses would be allowed to use rounding that favors customers. Following these rounding rules alone would not count as breaking other laws.

Sponsors & CoSponsors

Sponsor

McClain, Lisa C. [R-MI-9]

MI • R

Cosponsors

  • Rep. Garcia, Robert [D-CA-42]

    CA • D

    Sponsored 4/29/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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