Common Cents Act
Sponsored By: Representative McClain, Lisa C. [R-MI-9]
Passed House
Summary
Ends production of the penny and establishes five-cent cash rounding. It protects people and businesses that use rounding and requires the Federal Reserve and Treasury to plan and report on the transition.
Show full summary
- Families and consumers: Penny production stops for general circulation but existing pennies remain legal tender. Cash totals and change are rounded to the nearest 5 cents with specific rules for which final digits round up or down.
- Workers and businesses: Employers must round cash wages up to the nearest 5 cents when a cash wage is not divisible by 5 cents, unless the payment is already exact. Rounding rules do not apply to non-cash payments and no party is compelled to round.
- Federal Reserve, Treasury, and Congress: The Federal Reserve must submit a strategic plan in 90 days and evaluate progress at 6, 18, and 30 months. The Treasury must report within 60 days on penny supply, demand, and rounding effects on vulnerable populations and Congress must get 60 days notice before discontinuing a circulating coin plus a 30-day follow-up briefing.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Nickel metal mix could change
The 5-cent coin would be allowed to use new metal mixes to lower Mint costs. One option would be a 5-gram copper-nickel coin. Another option would weigh 4 to 6 grams with a zinc core and nickel outer layer. The Treasury Secretary would set the exact mix and would have to test it to cut costs and, as much as possible, avoid problems with coin-accepting machines.
Penny production ends with planning reports
The Treasury would stop making pennies for everyday use. Pennies already minted would stay legal tender, and the Mint could still sell new pennies to collectors. Treasury would have to give Congress 60 days’ notice and brief the committees within 30 days before discontinuation. Within 90 days, the Federal Reserve would file a plan on penny orders and deposits at commercial coin terminals. Treasury would send the Board an assessment within 60 days on risks and effects on low-income, older, and unbanked or underbanked people. Board follow-ups would be due at 6, 18, and 30 months after the first report. The bill would define the covered committees as House Financial Services and Senate Banking, and define which businesses count as financial institutions for these notices and reports.
Cash and wage payments rounded to nickels
If enacted, cash totals would be rounded to the nearest 5 cents when exact change is not available. Final digits 1, 2, 6, or 7 would round down; 3, 4, 8, or 9 would round up. $0.01 or $0.02 would round up to $0.05. Rounding would apply only to cash, not cards, checks, or digital payments. No one would be required to round. When paying a customer, cents would be rounded up; when a customer pays, cents would be rounded down. If an employer pays cash and elects to round, the pay would be rounded up to the next 5 cents. This would not change minimum wage, overtime, or paid-leave rights.
Sponsors & CoSponsors
Sponsor
McClain, Lisa C. [R-MI-9]
MI • R
Cosponsors
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 8/27/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov