Congress Records Bill to End Penny Minting and Round Cash Payments

WASHINGTON — The House has recorded H.R. 10167, the Common Cents Act, as signed by Speaker pro tempore Houchin after the Senate passed the bill without amendment. The measure would stop the Treasury Department from making pennies for everyday circulation, while keeping pennies already issued usable as legal tender — money that may be used to pay debts, taxes and other dues. 1 2

The development matters because it would change how some cash payments are completed if exact change is unavailable. Under the enrolled bill, a cash amount ending in 1, 2, 6 or 7 cents could be rounded down to a five-cent amount. An amount ending in 3, 4, 8 or 9 cents could be rounded up. A purchase totaling 1 or 2 cents could be rounded up to 5 cents. The bill allows this rounding; it does not require every cash payment to be rounded. 3

The proposal would apply to cash sales and other transfers of cash. It would not apply to payments made by check, credit card, gift card, electronic fund transfer, money order or similar methods. That means people using cards or digital payments would not have their payments rounded under this section. Retailers, banks and other businesses handling cash could need procedures for the new rules. If an employer chooses to round a cash payment to an employee, the bill requires rounding up; it does not require an employer to round an exact payment. 3

Treasury could still make pennies for collectors. The bill also would allow a five-cent coin, or nickel, to use a zinc inner layer and nickel outer layer after Treasury testing aimed at lowering production costs and limiting problems for coin-operated machines. 3

The tradeoff is between reducing the work of producing and handling pennies and the adjustment required for cash users and cash-handling businesses. The bill directs Treasury to assess effects of penny-supply and demand disruptions, along with check-cashing rounding practices, on low-income communities, older consumers, and debanked, unbanked and underbanked people. That requirement identifies issues for review; it does not establish an effect on prices. 3

An enrolled bill is the final text approved by both chambers of Congress. The House record shows the Senate passed H.R. 10167 without amendment and that the speaker pro tempore signed the enrolled bill. Those congressional steps do not themselves make it law. The bill would still need to complete the presidential stage before its provisions could take effect. 1 2