Congress has moved to stop making pennies, and the same bill opens the door to a cheaper nickel, FOX 4 reported.
The Senate passed the bipartisan Common Cents Act last month and sent it to President Donald Trump. The measure, H.R. 10167, would formally end production of the penny for general circulation. Pennies already in pockets and cash drawers would remain legal tender. The U.S. Mint made 3.2 billion pennies in 2024 alone.
House GOP Conference Chair Lisa McClain, R-Mich., sponsored the bill. She said a nickel now costs 13 cents to make, eight cents more than it is worth, and that Washington should fix that instead of spending more taxpayer money. Her office said the bill gives the Treasury Department a path to make nickels at a lower cost without changing how people use them. Support for ending the nickel altogether is still unclear.
Congress.gov says the bill, introduced Aug. 27, passed the Senate without amendment by unanimous consent on Sept. 28. It requires the Treasury to stop producing pennies except for collectors. It also lets the nickel be made from a different mix. Besides the current copper-nickel alloy, a nickel could be clad with a zinc core and an outer layer of nickel. A cheaper composition would be authorized only if testing shows it cuts costs without significantly disrupting coin-operated machines such as vending machines.
The bill also sets cash-rounding rules as pennies disappear. Totals ending in 1, 2, 6 or 7 would round down. Totals ending in 3, 4, 8 or 9 would round up. The rules apply to cash sales, other cash transfers and cash wages. Card payments, wire transfers and other non-cash transactions would still be charged to the exact cent. New Jersey has already introduced a rounding law stores could use. Other states are preparing for a post-penny checkout.
The Treasury would also be allowed to stop minting any coin for circulation if it notifies and briefs Congress. The Federal Reserve would have to report on a plan for handling penny orders and deposits at coin terminals. The bill is not law until Trump signs it.
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