HR 10167: Common Cents Act

HR 10167 in plain English: The Common Cents Act ends production of the penny for general circulation, requiring cash transactions to be rounded to the nearest amount divisible by five. The penny remains legal tender, and the bill also allows nickels to be made from different materials.

Stated purpose

This bill ends the minting of pennies for general circulation, requires cash transactions to be rounded to the nearest five cents, and allows nickels to be made from different materials to reduce production costs.

Key points

• Stops the U.S. Mint from producing pennies for general circulation, though pennies remain legal tender
• Requires cash transactions to be rounded up or down to the nearest multiple of five cents
• Amounts totaling $0.01 or $0.02 may be rounded up to $0.05
• Allows nickels to be made with a zinc inner core and nickel outer layer, in addition to the current copper-nickel alloy
• Lets Treasury stop minting any coin for circulation after providing notice and a briefing to Congress

Arguments supporters make

• Pennies cost more to produce than they are worth, so stopping production saves taxpayer money over time.
• Eliminating the penny speeds up cash transactions and reduces the hassle of handling coins most people rarely use.
• Allowing cheaper materials for the nickel gives the government flexibility to lower minting costs without eliminating that coin.

Arguments opponents make

• Rounding rules could consistently favor businesses over consumers, adding up to a hidden cost for people who rely heavily on cash, often lower-income shoppers.
• Removing the penny could raise effective prices on small purchases, acting as a small but real price increase on everyday goods.
• Penny production jobs and the copper-zinc supply chain could be harmed, and existing penny-sorting and redemption infrastructure may become stranded costs.

Tradeoffs

Ending penny production saves government minting costs but shifts small rounding differences onto cash-paying consumers and businesses; the convenience gained by simplifying cash transactions must be weighed against the potential for systematic small losses for those who depend most on cash payments.

Current status in Congress: Passed both chambers.

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