The U.S. Senate delivered a rare bipartisan agreement on Aug. 7, 2026, unanimously advancing legislation aimed at formally ending production of the penny and giving the Treasury Department greater flexibility to reduce the cost of producing nickels.<\/p>\n
The Senate passed the Common Cents Act, S. 1525, by unanimous consent after adopting a substitute amendment. The legislation would codify the end of penny production for general circulation, establish rules for rounding certain cash transactions and authorize the Treasury Department to test a potentially less expensive composition for the five-cent coin.<\/p>\n
The House had previously passed its version, H.R. 3074, by voice vote on July 14. After the Senate acted on S. 1525, the House later introduced and passed another version, H.R. 10167, on Sept. 14 by voice vote. That measure was received in the Senate and referred to the Senate Banking, Housing, and Urban Affairs Committee on Sept. 15.<\/p>\n
As of Sept. 22, the legislation has not yet been enacted into law. The Senate must still act on H.R. 10167 before the measure can be sent to President Donald Trump.<\/p>\n
The legislation addresses the rising cost of producing U.S. coins, particularly the penny and nickel.<\/p>\n
The first major provision would formally end production of pennies for general circulation.<\/p>\n
The U.S. Mint struck its final circulating penny on Nov. 12, 2025, ending a 232-year production run. Existing pennies remain legal tender and retain their face value. The Mint can also continue producing limited pennies for collectors.<\/p>\n
The Mint’s fiscal 2025 annual report said producing one penny cost 3.02 cents, more than three times its face value. The Treasury has separately estimated that ending penny production would save about $56 million annually in material costs.<\/p>\n
The Common Cents Act would codify the end of penny production while establishing a federal framework for handling cash transactions after the supply of pennies declines.<\/p>\n
Under the legislation, cash transactions would be rounded to the nearest five cents when exact change is unavailable.<\/p>\n
For example, a $19.82 cash purchase could be rounded to $19.80, while a $19.83 purchase could be rounded to $19.85.<\/p>\n
Non-cash transactions, including purchases made with credit cards, debit cards and electronic payments, would continue to be charged to the exact cent.<\/p>\n
The federal legislation is intended to provide a consistent framework for businesses as the supply of pennies declines, although the precise rules depend on the version ultimately enacted.<\/p>\n
Another major provision addresses the nickel, which has also become increasingly expensive for the government to manufacture.<\/p>\n
According to the U.S. Mint’s fiscal 2025 annual report, producing and distributing one nickel cost 13.31 cents \u2014 more than two and a half times its five-cent face value. The penny and nickel both had production costs above their face values for the 20th consecutive fiscal year.<\/p>\n
The cost of raw materials is one factor. In fiscal 2025, the Mint reported average spot prices of approximately $9,453.50 per metric ton for copper and $2,839.69 for zinc.<\/p>\n
The legislation would allow the Treasury Department to test an alternative nickel composition using an inner zinc layer and an outer nickel layer. The alternative could be adopted only if testing shows that it would reduce production costs without significantly interfering with vending machines, parking meters, coin counters and other equipment designed to recognize existing coins.<\/p>\n
Rather than eliminating the nickel, the legislation would give Treasury officials the authority to explore whether changing its composition could lower production costs.<\/p>\n
The legislation has received support from lawmakers in both parties.<\/p>\n
S. 1525 was sponsored by Sen. Cynthia Lummis, R-Wyo., with Sen. Kirsten Gillibrand, D-N.Y., as a cosponsor. Republican Sen. James Lankford of Oklahoma and Democratic Sen. Ron Wyden of Oregon also supported the measure.<\/p>\n
The Senate approved S. 1525 by unanimous consent on Aug. 7, while the House subsequently passed H.R. 10167 by voice vote on Sept. 14. The measure now awaits further Senate action before it could reach the president’s desk.<\/p>\n
The legislation’s progress reflects bipartisan congressional efforts to establish federal rules for coin production and cash transactions as the United States moves away from circulating pennies.<\/p>\n","protected":false},"excerpt":{"rendered":"
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