Congress Moves To Permanently Eliminate Pennies

COMMON CENTS: The House voted to permanently kill the penny, passing bipartisan legislation that blocks the U.S. Mint from producing any new one-cent coins except for collectors.

The bill also sets up a rounding framework for all cash transactions to the nearest nickel — and… pic.twitter.com/arj2SXJzna

— Fox News Politics (@foxnewspolitics) September 15, 2026

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The bill was led by House GOP Conference Chair Lisa McClain, R-Mich., and Rep. Robert Garcia, D-Calif., the top Democrat on the House Oversight Committee.

It builds on a past bill McClain led in the House that also passed the Senate directing the federal government to stop minting the penny, but that legislation did not include language on rounding out cash payments.

An additional provision would allow the U.S. Mint to produce nickels from cheaper material than they currently are made with.

Congress would also monitor any disruptions the new rule causes to Americans by directing the Treasury to examine its effect on low-income people, older consumers, debanked people, among other groups.

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WATCH: @RepMonicaDLC speaks in support of the Common Cents Act:

"In 2024 alone, taxpayers lost more than $85 million producing pennies. Chairwoman McClain's bill eliminates that wasteful spending by codifying President Trump's directive to the Mint to stop producing new pennies… pic.twitter.com/lMj1NNeLWH

— Financial Services GOP (@FinancialCmte) September 14, 2026

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As pennies fall out of circulation, merchants will need to round transactions either up or down to the nearest five cents. However, most states require sales tax to be calculated on the final sale price rounded to the nearest penny. How states and localities will ultimately amend their sales tax laws is the right and responsibility of those jurisdictions. Recent guidance from the National Council of State Legislators gives some indication how states may adapt. The NCSL’s November 21, 2025 report entitled Elimination of the Penny: Cents-able Considerations states: “The most recommended form of rounding is symmetrical rounding whereby if the final digit of the total transaction amount (including taxes) is 1, 2, 6, or 7 cents, the amount is rounded down to the nearest multiple of five. If the final digit is 3, 4, 8, or 9 cents, the amount is rounded up. Transactions totaling exactly $0.01 or $0.02 might be rounded up to $0.05. Rounding rules would not apply to payments made via electronic methods, checks, gift cards, or other non-cash instruments.”

Retailers should continue accepting pennies and providing penny change for cash transactions while the coin remains in circulation. When penny change is not available, businesses may round the final amount of a cash transaction to the nearest five-cent increment, recognizing that states will approach this issue differently based on unique considerations. The penny will remain legal tender, meaning it retains its status as an acceptable form of payment.

We recommend that non-cash transactions, such as payments made by check, credit card, or debit card, continue being priced and processed to the exact cent.

Businesses should apply rounding practices in a fair, consistent, and transparent manner.

We recommend that rounding be applied only to cash payments. Payments made with foreign currencies, government checks, gift cards, or split payments can be settled to the exact amount without the need for rounding adjustments.

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