Fears for the nickel as Senate passes ‘Common Cents Act’ months after penny was axed
- The U.S. Mint halted penny production in November 2025 after President Donald Trump called the coin wasteful and now both the Senate and House have passed versions of the “Common Cents Act” to provide legal guidance for cash transactions without the one-cent coin.
- Under the proposed legislation, retailers would be legally authorized to round cash transaction totals to the nearest five cents when exact change is unavailable, while electronic and card payments will continue to be processed for exact amounts. An identical version of the bill must clear both congressional chambers before it can be sent to Trump to be signed into law.
- Major trade organizations, including the National Grocers Association and the National Restaurant Association, praised the legislation for removing regulatory uncertainty and protecting small businesses from potential litigation.
- The legislation also allows the Treasury Department to test cheaper manufacturing methods for the nickel, which currently costs 13.8 cents to produce, amid concerns that removing the penny will increase demand for five-cent coins.
- A new design would be subject to “testing and evaluation” to determine it cuts cost and “has a minimal adverse impact on machines designed to accept coins.”
More bulletins