Common Cents Act Advances Through Congress
The Common Cents Act has cleared both chambers of Congress in substantially matching forms, providing retailers with legal cover to round cash transactions to the nearest five cents when exact change cannot be provided.
The bill's passage follows a history of penny shortages and varying state policies. The federal government stopped producing pennies for general circulation before Congress had a framework for businesses to operate without them.
President Trump directed the Treasury Department to cease production of the penny as part of his 'commonsense agenda' in February 2025, citing its lack of value and resulting losses by the Mint. However, this action is questionable under Article I, Section 8, Clause 5 of the U.S. Constitution.
The bill's most immediate significance is its guidance on rounding, which would allow retailers to round cash totals that end in one, two, six, or seven cents down to the nearest amount divisible by five.