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

The Senate on Monday night passed the Common Cents Act, sending President Donald Trump legislation 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 bill does not apply to electronic transactions. Its rounding rules take effect as pennies, already fading from circulation, become increasingly difficult to obtain.

The bipartisan measure represents a victory for retailers that had sought federal guidance on how to handle cash transactions more efficiently. The House version was cosponsored by Rep. Lisa McClain, a Michigan Republican, and Rep. Robert Garcia, a California Democrat. Sens. Cynthia M. Lummis (R-WY) and Kirsten Gillibrand (D-NY) sponsored the Senate version.

For grocers, the penny shortage created a specific compliance problem. Under equal treatment provisions, retailers cannot charge shoppers who use SNAP benefits a different price than other consumers, and the difficulty obtaining pennies has complicated handling of those transactions.

Dylan Jeon, vice president of government relations for the National Retail Federation, praised the bill's passage in an emailed statement Tuesday, calling it "a solution to a real problem for retailers" that "provides much-needed consistency for both businesses and consumers." The association urged Trump to "sign this bill into law without delay."

The National Grocers Association, which had pushed lawmakers to allow retailers to round cash transactions to the nearest nickel, also hailed the bill's passage.

"Independent grocers process millions of transactions every day, and the disappearance of the penny created a very practical problem at the checkout counter," NGA Senior Vice President and Head of Government Affairs Stephanie Johnson said in a statement Tuesday. "We appreciate the bipartisan leadership in the Senate to advance a commonsense solution that gives businesses clear rules and helps minimize confusion for consumers."

The legislation required two votes in both chambers. The Senate endorsed the bill in August with an amendment, forcing a second House vote earlier this month followed by Monday's second Senate ratification.

The amendment, offered by Massachusetts Sen. Elizabeth Warren, requires the Treasury Department to notify Congress of any future currency discontinuation along with a transition plan, according to two retail industry trade associations.

The final batch of pennies was struck last November, nine months after Trump directed the U.S. Treasury to stop making the coins, citing their cost inefficiency. Treasury estimated $56 million in annual savings from ending penny production. Under the bill, pennies will still be produced as collectible coins.

Beyond rounding rules, the legislation directs the Treasury Department to explore alternative metal options using zinc instead of copper for the nickel, aiming to lower production costs for the 5-cent coin.

Lummis thanked her current and former Senate colleagues for their support in a Tuesday post on her X social media page. Retailers now await Trump's signature to begin applying the rounding framework at the checkout counter.