Senate Passes Common Cents Act to End Penny Production

The U.S. Senate unanimously passed the Common Cents Act on Monday, formally ending the production of the penny after 234 years. The bipartisan legislation codifies a 2025 order by Donald Trump to stop minting the 1-cent coin, which currently costs approximately 3.69 cents to produce. The bill now awaits the president's signature.

To manage the transition, the act establishes a rounding system for cash transactions to the nearest nickel. Totals ending in one, two, six, or seven will be rounded down, while those ending in three, four, eight, or nine will be rounded up. Non-cash payments, including credit cards and checks, will maintain exact cent pricing. The law provides legal liability protection for businesses and individuals adopting this system, while existing pennies remain legal tender.

The U.S. Mint in Philadelphia produced the final five pennies in November 2025 as part of the phase-out. The government estimates that ceasing production will save $56 million annually. Additionally, the act authorizes the Treasury Secretary to experiment with cheaper compositions for nickels, such as using a zinc inner layer, to reduce costs as their circulation increases.

The legislation also requires the Treasury Department to notify Congress 60 days before discontinuing any other circulating coin. Industry groups, including the American Bankers Association and the National Retail Federation, supported the bill to ensure consistency and legal clarity for financial institutions and retailers.