Common Cents Act
- Bill Number
- S. 1525
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-04-30: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-07-01T11:06:18Z
AI-Generated Summary
Purpose
The "Common Cents Act" aims to eliminate the routine production of the one-cent coin (penny) by the U.S. Mint due to high production costs, while maintaining its status as legal tender. It also introduces rounding rules for cash transactions to simplify payments without pennies, ultimately reducing government spending on coin production.
Key Provisions
- Short Title: The bill is titled the "Common Cents Act."
- Elimination of Penny Production:
- The Secretary of the Treasury must stop minting and issuing new pennies for general circulation within one year of the bill's enactment.
- An exception allows continued production solely for numismatic collectors (hobbyists who collect coins), with these coins sold at a price that covers all production costs, including fixed and variable expenses.
- All existing pennies remain legal tender, meaning they can still be used to pay debts, taxes, and other obligations, regardless of when they were made.
- Cash Transaction Rounding:
- For cash payments (including wages), the total amount, including taxes, must be rounded to the nearest 5 cents:
- Round down (to the lower 5-cent multiple) if the cents end in 1, 2, 6, or 7 (e.g., $1.01 or $1.07 becomes $1.00).
- Round up (to the higher 5-cent multiple) if the cents end in 3, 4, 8, or 9 (e.g., $1.03 or $1.09 becomes $1.05).
- Exceptions:
- Transactions totaling $0.01 or $0.02 must round up to $0.05.
- The rounding rule does not apply to non-cash payments, such as checks, credit cards, electronic transfers, gift cards, or money orders.
- This rounding provision takes effect one year after enactment.
Significant Changes to Existing Law
- Overrides section 5112(a)(6) of title 31, United States Code, which currently requires the U.S. Mint to produce pennies as part of standard circulating coinage.
- Introduces a new federal mandate for rounding cash transactions, which does not exist in current law and applies nationwide to all cash-based sales of goods, services, or wage payments.
- Shifts penny production from general use to a limited collector market, governed by existing numismatic sales rules under section 5132(a) of title 31, United States Code.
Potential Impacts
- Government Agencies: The U.S. Treasury and Mint would save significant costs on penny production (estimated in real-world contexts to exceed the coin's face value due to metal and labor expenses), redirecting resources to other coinage or operations. Collector sales must be self-sustaining.
- Citizens and Consumers: Everyday cash users may experience minor changes in transaction totals (averaging out to neutral over time), but it could simplify payments and reduce the need to handle small coins. Low-income individuals relying on cash might face slight adjustments in small purchases or wages.
- Businesses: Retailers, employers, and service providers must implement rounding systems for cash transactions, potentially requiring updates to point-of-sale software or training, though non-cash options remain unaffected.
- International Relations: No direct impacts, as the bill focuses on domestic U.S. currency practices.
Main Stakeholders Affected
- U.S. Treasury Department and U.S. Mint: Directly responsible for halting production and managing collector exceptions.
- Businesses and Retailers: Required to round cash transactions, affecting operations in sectors like retail, hospitality, and payroll.
- Consumers and Wage Earners: Impacted by changes in cash payment amounts, particularly those without access to electronic payment methods.
- Numismatic Collectors: Benefit from continued, albeit limited, availability of new pennies through specialized sales.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces the legal tender status of existing pennies under existing law, preventing any devaluation or forced redemption. The rounding rule creates a uniform national standard but includes carve-outs to avoid conflicts with contract law or private payment methods; enforcement would likely fall to standard commercial regulations rather than new penalties.
- Constitutional: No apparent challenges, as the bill regulates currency production (a congressional power under Article I, Section 8) and does not infringe on states' rights or individual liberties in a substantive way.
- Political: Sponsored bipartisanship (by Senators Lummis and Gillibrand) highlights a focus on fiscal efficiency; referred to the Senate Committee on Banking, Housing, and Urban Affairs for review, it could spark debates on cost savings versus tradition in currency use.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Lummis, Cynthia M. [R-WY]
Cosponsors (1)
Sen. Gillibrand, Kirsten E. [D-NY]
Recent Actions
- 2025-04-30: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-04-30: Introduced in Senate
Bill Versions
- Common Cents Act — issued 2025-04-30 — PDF (4 pages)