Common Cents Act
- Bill Number
- H.R. 3074
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-09-04: Placed on the Union Calendar, Calendar No. 192.
- Last Updated
- 2026-07-08T16:08:39Z
AI-Generated Summary
Purpose of the Legislation
The "Common Cents Act" (H.R. 3074) aims to eliminate the production of one-cent coins (pennies) for everyday use due to cost concerns, while allowing their continued creation as collectible items. It also seeks to update specifications for five-cent coins (nickels) to potentially lower production expenses. The bill's title references requiring cash transactions to round to the nearest five cents, though this provision is not detailed in the provided text.
Key Provisions
- Short Title: The Act is named the "Common Cents Act."
- Amendments to Coin Specifications (31 U.S.C. § 5112):
- Updates the five-cent coin (nickel) to weigh between 4 and 6 grams if made with a zinc inner layer and nickel outer layer, or 5 grams if made from copper-nickel alloy.
- Allows the Secretary of the Treasury to test and adjust the zinc-nickel composition of nickels to reduce production costs.
- Specifies that one-cent coins are composed of copper and zinc (replacing prior language).
- Elimination of One-Cent Coins:
- The Secretary of the Treasury must stop producing one-cent coins for general circulation (everyday use).
- Production may continue for numismatic purposes (collectibles sold to hobbyists).
- All previously minted one-cent coins remain legal tender (valid for paying debts, taxes, and other obligations).
Significant Changes to Existing Law
- Coin Production Halt: Introduces a new subsection (bb) to 31 U.S.C. § 5112, mandating the end of penny production for circulation, overriding prior requirements for ongoing minting.
- Nickel Composition Flexibility: Modifies existing weight and material rules for nickels, adding options for cost-saving alloys (zinc core with nickel cladding) and authorizing the Treasury Secretary to prescribe changes after testing—previously, compositions were more rigidly defined.
- Preservation of Legal Status: Explicitly protects the tender status of existing pennies, ensuring no retroactive invalidation.
Potential Impacts
- Government Agencies: The U.S. Mint (under the Treasury Department) will save on production costs for pennies, which are expensive to make due to metal prices. This could redirect resources to other coins or operations, but may require adjustments in inventory management for numismatic sales.
- Citizens: Everyday cash transactions may become simpler without pennies, potentially leading to minor rounding in pricing (as hinted in the title), which could slightly increase or decrease costs for consumers depending on the amount. Collectors benefit from continued availability of pennies as hobby items.
- International Relations: Minimal direct impact, though it could influence global metal markets (e.g., less demand for copper and zinc used in pennies) and set a precedent for other countries considering coin elimination.
Main Stakeholders Affected
- U.S. Treasury and Mint: Directly responsible for implementing production changes and testing new nickel compositions.
- Consumers and Retailers: Impacted by the absence of pennies in circulation, potentially affecting small-change handling in stores and personal finances.
- Numismatists and Collectors: Gain from ongoing penny production for collectibles, maintaining access to historical coinage.
- Metal Suppliers and Manufacturers: Affected by shifts in demand for coin metals like copper, nickel, and zinc.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the Treasury's authority over coinage under Article I, Section 8 of the U.S. Constitution (Congress's power to coin money), without altering the legal tender status of existing currency—avoiding challenges to property rights or contract law.
- Constitutional: No apparent conflicts, as it exercises congressional delegation to the executive branch on monetary standards.
- Political: Could spark debate on government spending (saving mint costs vs. tradition of the penny) and consumer protection (rounding might raise equity concerns for low-income individuals). As a reported bill in the 119th Congress, it reflects bipartisan interest (introduced by Reps. McClain and Garcia) in fiscal efficiency, but implementation would require Senate approval and presidential signature.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. McClain, Lisa C. [R-MI-9]
Cosponsors (1)
Recent Actions
- 2025-09-04: Placed on the Union Calendar, Calendar No. 192.
- 2025-09-04: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-235.
- 2025-09-04: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-235.
- 2025-07-23: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 35 - 13.
- 2025-07-23: Committee Consideration and Mark-up Session Held
- 2025-07-22: Committee Consideration and Mark-up Session Held
- 2025-04-29: Referred to the House Committee on Financial Services.
- 2025-04-29: Introduced in House
- 2025-04-29: Introduced in House
Bill Versions
- Common Cents Act — issued 2025-04-29 — PDF (4 pages)
- Common Cents Act — issued 2025-09-04 — PDF (6 pages)