The Common Cents Act, a bipartisan federal measure designed to manage the transition away from the one-cent coin, was approved by the House of Representatives on Tuesday and is now awaiting consideration by the Senate. The legislation establishes a uniform nationwide protocol for handling cash transactions when exact change is not available, addressing concerns from business groups about legal ambiguity.
Under the proposed rules, transactions ending in specific cent amounts will be rounded to the nearest nickel. Totals ending in one, two, six, or seven cents will be rounded down. For example, a bill of $10.01 or $10.02 would become $10.00, while $10.06 or $10.07 would become $10.05.
Conversely, amounts ending in three, four, eight, or nine cents will be rounded up to the next five-cent increment. A total of $10.03 or $10.04 would round to $10.05, and $10.08 or $10.09 would round to $10.10.
The National Restaurant Association has warned that the phase-out of the penny will result in a $168 million financial impact for the restaurant industry. Sean Kennedy, the group’s chief advocacy officer, stated that while the elimination of the coin carries unavoidable costs, the industry is seeking regulatory clarity.
He noted that without precise rounding guidelines, businesses face potential litigation for not providing exact change, even in states that have already implemented similar rules.
The US Mint ceased production of the penny in November 2025 after more than 230 years of circulation. The decision followed findings that it cost approximately four cents to produce a single one-cent coin. The Treasury Department estimates the switch will save $56 million annually.
