The U.S. House of Representatives has passed the Common Cents Act, a bill designed to help businesses and consumers handle cash transactions as the penny is phased out.
The measure would create a national rule for rounding cash purchases to the nearest nickel when exact change is not available. It now heads to the Senate for consideration.
Why the Bill Was Introduced
The legislation responds to growing confusion caused by the end of penny production and regional shortages of one-cent coins.
Without clear federal rules, businesses can face legal risks if they do not provide exact change, even when rounding in a customer’s favour.
Industry groups say the lack of national guidance has made cash transactions more complicated for retailers, restaurants, banks and consumers.
What the Common Cents Act Would Do
The Common Cents Act would direct the Treasury to stop minting pennies and establish a standard rounding system for cash transactions.
Under the bill, cash totals would be rounded up or down to the nearest five cents. Existing pennies would still keep their value and remain usable.
How Rounding Would Work
The rounding rule would apply only when exact change is unavailable in cash transactions.
For example, if a customer’s total after tax is $10.02, the amount would round down to $10.00. If the total is $10.04, it would round up to $10.05.
The goal is to create a predictable system that both businesses and customers can understand.
Businesses Want a National Standard
Business groups have pushed for a single federal rounding rule instead of a patchwork of different state or local policies.
The National Restaurant Association praised the House vote, saying the bill gives restaurants clarity, consistency and protection while they manage the penny phase-out.
Restaurants Warn About Legal Liability
National Restaurant Association chief advocacy officer Sean Kennedy said restaurants can face legal concerns when they cannot provide exact penny change during cash transactions.
He said many businesses already round to the nearest nickel as a practical solution, but they want federal certainty to reduce customer frustration and protect operators from lawsuits.
Rounding Costs Could Add Up
The National Restaurant Association estimates that if restaurants always round down because pennies are unavailable, the practice could cost the industry up to $168 million annually.
The group still supports the Common Cents Act because it would give operators legal protection and a consistent process as pennies become less common.
Penny Production Has Ended
The U.S. Mint officially ended production of the penny in November 2025, closing a more than 230-year chapter in American coinage. The penny had become increasingly expensive to produce, costing nearly four cents to make while being worth only one cent.
Existing Pennies Still Have Value
Although new pennies are no longer being produced for general circulation, pennies already in circulation remain legal tender.
That means consumers can still use them, and businesses can still accept them. The Common Cents Act is mainly meant to handle situations where pennies are unavailable and exact cash change cannot be provided.
Cash Users Still Matter
The issue remains important because many Americans continue to use cash.
The National Restaurant Association says roughly one in four restaurant customers pays in cash, meaning penny shortages can still affect daily business operations.
Local Taxes Keep Penny Amounts on Receipts
Even after penny production ends, many final bills will still include one-cent amounts because of local sales taxes and price calculations.
That means cash transactions may still require pennies unless a rounding rule is in place. Businesses say this is why national guidance is needed before shortages become more disruptive.
Penny Shortages Have Created Confusion
As pennies become harder to obtain, some businesses have asked customers for exact change, encouraged card payments or adopted their own rounding practices.
Earlier reporting found that retailers and states had begun looking for guidance as penny shortages spread, because no national cash-rounding policy had yet been enacted.
Senate Will Decide the Bill’s Future
The Common Cents Act now moves to the Senate.
If approved there and signed into law, it would create a nationwide rounding standard for cash transactions and reduce uncertainty for businesses and consumers adjusting to life with fewer pennies.
The Common Cents Act is designed to make the U.S. penny phase-out less confusing by creating a national rule for rounding cash transactions to the nearest nickel.
Supporters say it would protect businesses from legal risk, reduce frustration for cash-paying customers and provide a clear transition as pennies become increasingly scarce.
While existing pennies would remain valid, the bill would give retailers, restaurants, banks and consumers a practical way to handle everyday purchases without relying on exact one-cent change.