The House of Representatives passed the Common Cents Act to establish national rounding standards as the U.S. phases out the penny.
The House of Representatives passed the Common Cents Act on Tuesday, a bipartisan bill that establishes national guidelines for rounding cash transactions to the nearest five cents as the U.S. gradually retires the penny. The legislation aims to eliminate the legal liability businesses currently face when they lack exact change, providing a "safe harbor" for merchants to round totals without fear of litigation. The bill addresses the inefficiency of penny production, which costs approximately 3.69 cents to manufacture. The administration announced that stopping penny production will save roughly $56 million annually, as the current production cost has exceeded the coin's face value for 20 consecutive years. While the act ends the minting of new pennies, existing coins will remain legal tender. The legislation received broad support from business advocacy groups, including the National Restaurant Association and the National Association of Convenience Stores. These groups noted that the act provides much-needed certainty for cash-handling establishments. The bill now moves to the Senate for consideration before potentially reaching the President for a final signature.