U.S. House passes legislation to permanently end penny production

The U.S. House of Representatives has passed the bipartisan Common Cents Act, a legislative move aimed at permanently ending the production of the one-cent coin. While the U.S. Mint halted regular penny production in November 2025 due to rising costs—with production costs reaching approximately 3.69 cents per coin—the new legislation seeks to formalize this transition.

Under the proposed act, existing pennies will remain legal tender. To manage the absence of exact change, the bill establishes a framework for rounding cash transactions to the nearest five cents. Specific rules apply to cash wage payments: if an employer rounds a payment not divisible by five cents, they must round up to the nearest nickel.

The legislation also authorizes the Treasury Department to explore lower-cost compositions for nickels and requires the Federal Reserve Board to study the impact of these changes on unbanked populations, low-income communities, and older consumers.