Common Cents Act: Changes to Nickel and Cash Transactions in the United States
Lawmakers in the United States are considering significant changes to the nickel and how cash transactions are rounded. The Senate recently passed the "Common Cents Act," following a similar version passed by the House. This bill aims to provide guidance to businesses on operating without the penny, which ceased production in November 2025. Retailers can now round cash transactions to the nearest five cents when exact change is unavailable.
President Donald Trump halted penny production due to its high cost, with each penny costing 3.69 cents to produce. The bill allows rounding down for totals ending in one, two, six, or seven cents, and rounding up for totals ending in three, four, eight, or nine cents. While the approximately 300 billion pennies in circulation will remain legal tender, electronic transactions will remain exact.
The National Grocers Association and the National Restaurant Association support the Common Cents Act, as it provides clarity and consistency for retailers and businesses. The nickel, like the penny, is costly to produce, with each nickel costing 13.8 cents. The Treasury may explore ways to reduce the cost of nickel production if the bill becomes law. Currently, the nickel remains unchanged, but a separate bill to suspend its production is stalled in a House committee.
In conclusion, the Common Cents Act aims to streamline cash transactions and provide clear guidelines for businesses post-penny production. The future of the nickel remains uncertain, with potential changes on the horizon to address its high production costs.