The Senate passed by unanimous consent yesterday a bill to officially end penny production and provide a framework for cash rounding when exact change cannot be provided. The legislation now heads to President Trump.
Trump last year directed the Treasury Department to stop producing pennies, noting that each penny costs more to make than it is worth. The Common Cents Act [H.R. 10167] by Reps. Lisa McClain (R-Mich.) and Robert Garcia (D-Calif.) officially orders the Treasury to cease penny production and allows cash transactions to be rounded up or down to the nearest five cents if exact change is not available while clarifying that checks, credit cards and other noncash payment methods are not subject to rounding.
The House passed a version of the Common Cents Act earlier this year, but the Senate added new language requiring the Treasury Department to give Congress 60 days’ advance notice before discontinuing any circulating coin. The revised bill also allows the Treasury Secretary to explore a new metals composition for nickel manufacturing to save costs. The House approved the Senate changes in a vote earlier this month.
In a statement, American Bankers Association President and CEO Rob Nichols said the bill will help consumers, businesses and financial institutions adapt with minimal disruption under a consistent set of rules.
“The Common Cents Act is a practical step that will modernize the nation’s coinage system, reduce unnecessary costs and preserve stability in the cash distribution system,” he said. “We thank lawmakers for their leadership and look forward to the bill being signed into law.”
