American retailers will soon receive formal instructions on how to round cash payments, following the Senate’s approval of the bipartisan Common Cents Act, which aims to officially halt penny production and now awaits the president’s signature.
Senate Approval Sends Law to President Trump
After passing the Senate on Monday, the Common Cents Act moves forward for consideration by President Donald Trump. The measure introduces clear rules for rounding cash transactions to the nearest nickel as actual pennies become less available, but leaves digital payments unchanged. Lobbying from retailers and consumer advocates spurred this initiative in pursuit of clearer cash-handling as pennies disappear from day-to-day use.
This legislation also officially ceases the U.S. Mint’s production of the penny. The last circulating one-cent coins were issued in November of the previous year, coming roughly nine months after President Trump directed the U.S. Treasury to stop their production due to manufacturing costs exceeding face value. By discontinuing pennies, the Treasury Department projected an annual savings of $56 million. However, coin collectors may still access special non-circulating versions.
The National Association of Convenience Stores (NACS) welcomed the bill’s passage in a statement on Tuesday, pointing out the dwindling presence of pennies in daily transactions. Brennan Duckett, who oversees regulatory and policy affairs for the group, called the new rounding protocol “critical for businesses that process cash transactions.” NACS is confident that President Trump will give his approval in the coming weeks.
Bipartisan Cooperation and Key Amendments in Congress
Progressing through Congress, the bill underwent several votes. After initial House passage, the Senate added amendments and passed it again in August, requiring the House to reconsider and approve the changes this month. Senate ratification on Monday wrapped up this legislative process. Among the key modifications was an amendment from Massachusetts’ Senator Elizabeth Warren, obligating the Treasury Department to present Congress with notification and a transition strategy should any further U.S. currency be phased out in the future, a requirement confirmed by both legislative chambers.
Senator Cynthia M. Lummis (R-WY), a cosponsor with Senator Kirsten Gillibrand (D-NY), thanked her fellow legislators for their support in a statement on X. Representatives Lisa McClain (R-MI) and Robert Garcia (D-CA) introduced the House version, highlighting the measure’s extensive bipartisan support.
Dylan Jeon, vice president of government relations at the National Retail Federation, commented via email that the act “provides much-needed consistency for both businesses and consumers,” and urged the president to finalize it promptly.
Penny’s Demise and Prospects for U.S. Coin Modernization
The Common Cents Act’s principal changes include the elimination of the penny for routine transactions and the establishment of formal rules for cash rounding. In addition, it tasks the Treasury Department with seeking further efficiencies for coin manufacturing. One provision specifically suggests investigating the potential of producing nickels from zinc instead of copper due to rising costs associated with the current five-cent coin’s composition.
As the measure heads to the Oval Office, President Trump’s expected signature will mark the close of more than 100 years of penny circulation, providing clear expectations for cash transactions without the one-cent coin, and setting the groundwork for broader cost-saving reforms in U.S. coin production.