The U.S. Senate has passed legislation that could formally end penny production, establish nationwide rules for rounding cash transactions, and eventually change how nickels are made, The Hill reports.
The Senate p
assed the Common Cents Act unanimously on Aug. 7. The House previously approved its own version of the legislation. The chambers must approve identical legislation before the measure can advance to President Donald Trump.For consumers and businesses, the legislation could bring clarity to cash transactions as pennies become increasingly scarce. The bill would allow businesses to round cash purchases to the nearest five cents while leaving credit, debit, and other electronic transactions unchanged.
For example, a $19.82 cash purchase could be rounded down to $19.80, while a $19.83 purchase could be rounded up to $19.85.
The federal framework could also address inconsistencies created by state and local laws that restrict businesses from rounding transactions.
The legislation would formally end production of pennies for
general circulation. The U.S. Mint produced its final circulating penny in 2025, although special collectible pennies were released in 2026 to commemorate the nation’s 250th anniversary. Existing pennies would remain legal tender.The outlet reported that more than 300 billion pennies are estimated to remain in circulation or held by consumers.
The Common Cents Act also takes aim at the rising cost of producing nickels.
According to U.S. Mint figures cited by The Hill, producing a nickel cost 13.31 cents in fiscal year 2025, down from 13.78 cents in fiscal 2024. The nickel has cost more than its 5-cent face value to produce for 20 consecutive years.
Nickels are made primarily of copper, which has contributed to their elevated production costs. Under the legislation, the Treasury Department would be authorized to test a less expensive composition using zinc and nickel.
Any alternative would have to reduce production costs while creating minimal problems for vending machines and other equipment designed to accept coins.
The legislation would not eliminate the nickel. Both nickels and existing pennies would remain legal tender even if the measure becomes law.
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