House Passes Common Cents Act to Eliminate Penny

The United States House of Representatives unanimously passed the bipartisan Common Cents Act on Monday, September 15, 2026, permanently eliminating the 1-cent coin from U.S. currency. The legislation prohibits the United States Department of the Treasury from minting pennies for general circulation, though collector coins remain permitted. This codifies a production halt that began in November 2025 under orders from the Donald Trump administration.

To manage the absence of pennies, the act establishes a framework for rounding cash transactions to the nearest 5 cents when exact change is unavailable. Electronic payments will continue to be charged to the exact cent. To protect workers, the bill requires that cash wages not divisible by 5 cents be rounded upward. While existing pennies remain legal tender, the Federal Reserve is tasked with developing a national transition plan and reporting on the impact of these changes on low-income and unbanked populations.

The move follows a sharp rise in production costs, with the Treasury reporting that pennies cost 3.69 cents each to produce. The United States Mint expects the production stoppage to save approximately $56 million annually. Additionally, the bill authorizes the Treasury to use cheaper materials for nickels. While the Retail Industry Leaders Association and the National Restaurant Association support the measure, the Federal Reserve Bank of Richmond estimates that consumers could lose $6 million per year due to the new rounding rules.