US House Passes the Common Cents Act
The Common Cents Act has officially passed the US House via voice vote, requiring cash transactions to be rounded to the nearest 5-cent increment following the cessation of standard penny production.
Under this new legislation, cash payments ending in 1 or 2 cents will be rounded down, while those ending in 3 or 4 cents will be rounded up. For example, a $1.82 cash total will round down to $1.80, and $1.83 will round up to $1.85. Meanwhile, non-cash transactions such as credit cards and mobile payments will continue to charge the exact amount down to the single cent.
Addressing the Coin Shortage and Nickel Costs
This federal measure aims to eliminate retail confusion caused by varying local rounding rules and addresses the acute shortage of 1-cent coins available for change. Existing pennies will remain legal tender and can still be used for purchases and tax payments, and collectible pennies will continue to be minted.
Additionally, the legislation addresses the rising costs of producing 5-cent nickels, which cost 13.31 cents to manufacture in fiscal year 2025โmore than double their face value. The bill authorizes the Treasury Department to test and implement cheaper alternative metals for nickel production.
