House of Representatives Votes to Eliminate 1-Cent Coin

The House of Representatives voted unanimously on Monday to pass the Common Cents Act, which aims to eliminate the 1-cent coin from circulation. The legislation prohibits the Treasury from minting any more pennies, except for collector coins, and establishes a system for rounding cash transactions to the nearest 5 cents to eliminate the need for pennies. However, cash wages will be rounded up if the total is not divisible by 5 cents. Existing pennies will remain legal tender. The US Mint ceased penny production in November 2025 after 232 years of circulation. If signed into law by President Donald Trump, the act would prevent future administrations from reversing this decision. The cost of minting pennies has increased significantly, with production costs exceeding their value by more than three times as of 2025. The Treasury estimates that the new legislation could save approximately $56 million annually. The bill was introduced by House GOP Conference Chair Lisa McClain, R-Mich., and Rep. Robert Garcia, D-Calif., who is the top Democrat on the House Oversight Committee. This legislation builds on a previous bill led by McClain that aimed to stop penny production, which had passed the Senate but did not include provisions for rounding cash payments. Additionally, the bill allows the US Mint to produce nickels using less expensive materials. Congress will monitor the impact of this new rule on various groups, including low-income individuals and older consumers, by directing the Treasury to assess its effects.