Senate Clears Common Cents Act, Sending Penny Phase-Out to Trump

The Senate on Monday night passed the Common Cents Act, a bipartisan bill that gives merchants a federal framework for rounding cash transactions to the nearest nickel and formally ends U.S. Mint production of the penny. The measure now heads to President Donald Trump, who is expected to sign it in the coming weeks, according to NACS, the National Association of Convenience Stores.

For retailers and convenience store operators, the bill resolves a practical problem that has grown since the Mint struck its final batch of circulating pennies last November. "The act provides guidance that is critical for businesses that process cash transactions as the number of pennies in circulation continues to dwindle," Brennan Duckett, director of regulatory and policy at NACS, said in a press release Tuesday.

The rounding rules apply only to cash transactions. Electronic payments are unaffected.

The bill also represents a win for the Treasury Department's bottom line. Trump directed the department in February 2025 to stop minting pennies, citing their cost inefficiency, and the department estimated $56 million in annual savings from ending production. Under the legislation, the Mint will continue producing pennies as collectible coins.

The path to passage required two votes in each chamber. The Senate endorsed the bill in August with an amendment from Massachusetts Sen. Elizabeth Warren that requires the Treasury Department to notify Congress of any future currency discontinuation, along with a transition plan, according to two retail industry trade associations. That change forced a second House vote earlier this month, followed by Monday's Senate ratification.

The House version was cosponsored by Rep. Lisa McClain (R-MI) and Rep. Robert Garcia (D-CA). Sens. Cynthia M. Lummis (R-WY) and Kirsten Gillibrand (D-NY) sponsored the Senate bill. Lummis thanked her current and former Senate colleagues for their support in a Tuesday post on X.

The National Retail Federation welcomed the final vote. "This is a solution to a real problem for retailers," Dylan Jeon, the NRF's vice president of government relations, said in an emailed statement Tuesday, adding that the legislation "provides much-needed consistency for both businesses and consumers." The association urged Trump to "sign this bill into law without delay."

Beyond cash rounding, the bill directs the Treasury Department to explore alternative metal options for the nickel, testing zinc instead of copper in an effort to cut production costs for the 5-cent coin. If signed, the law would give merchants their first uniform federal standard for handling cash as penny circulation keeps shrinking — and set a precedent for how future coinage changes get communicated to Congress.