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The Common Cents Act provides a framework for rounding cash transactions as the U.S. officially ends penny production.

The administration announced that the Common Cents Act has passed the House and Senate, establishing a legal framework for businesses to manage the end of penny production in 2025. The legislation allows retailers to round cash transactions to the nearest nickel when exact change is unavailable, providing much-needed clarity for industries like restaurants and supermarkets. While the production of the penny was halted because it was deemed wasteful by President Trump, the new bill ensures that cash totals ending in 1, 2, 6, or 7 cents can be rounded down, while totals ending in 3, 4, 8, or 9 cents can be rounded up. Currently, several states have already implemented their own rounding laws to avoid litigation over deceptive trade practices. The Common Cents Act also allows the Treasury to evaluate potential cost-saving designs for the nickel, which currently costs more to produce than the penny. Although the 300 billion pennies in circulation will remain legal tender, the bill provides a clear roadmap for the transition to a nickel-centric cash economy.

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