Common Cents Act

The Common Cents Act would direct the Treasury to cease minting pennies for general circulation within one year of enactment, though existing pennies would remain legal tender. The bill would require cash transactions to be rounded to the nearest 5 cents—amounts ending in 1, 2, 6, or 7 cents would round down, while amounts ending in 3, 4, 8, or 9 cents would round up. Very small transactions totaling $0.01 or $0.02 would round up to $0.05. Electronic payments using credit cards, debit cards, checks, and other non-cash methods would continue to use exact amounts with no rounding.

Proponents argue the bill would save taxpayers tens of millions of dollars annually, as it currently costs approximately 3 to 4 cents to produce each penny. The Treasury could continue minting pennies for collectors, but only if production costs are fully covered. Critics raise concerns that rounding could disadvantage low-income consumers who rely on cash, though studies from countries like Canada suggest the average impact on shoppers is minimal when rounding is applied fairly. Businesses would need to update cash registers and systems, though this would be a one-time adjustment.