Senate Passes Common Cents Bill
Source: Retail Dive, Justin Bachman
Photo: A bill to give merchants a federal framework for how to round cash transactions, the Common Cents Act, passed the Senate on Monday with the legislation heading to President Donald Trump. (Getty Images)
Our Two Cents
Apparently, Washington has decided it’s time to get serious about saving money—starting with the penny. The Senate has passed the Common Cents Act, establishing a framework for rounding cash transactions and formally moving the country toward life without the one-cent coin.
Nothing says fiscal responsibility quite like pinching pennies while spending tens of billions of dollars on a war with Iran. The Congressional Budget Office put the cost of the war at about $38 billion through August 1, with another $3 billion a month projected if it continues.
So, congratulations, America. We’re saving a few cents at the cash register while the Pentagon is burning through billions. Apparently, every penny counts—unless you’re dropping them from a bomber.
The measure to provide merchants a cash rounding framework and to formally phase out the penny now heads to the White House.
Dive Brief:
The Common Cents Act, which gives merchants a legal framework for rounding to the nearest nickel amid a dearth of pennies, passed the Senate on Monday night and heads to President Donald Trump.
The bipartisan bill — which also formally ends U.S. Mint production of the penny — represents a victory for merchants that had sought federal guidance on how to more efficiently handle cash transactions as pennies gradually fade from circulation. The measure doesn’t apply to electronic transactions.
In a press release Tuesday, NACS — the National Association of Convenience Stores — hailed passage of the bill and said Trump is expected to sign it in the coming weeks. “The act provides guidance that is critical for businesses that process cash transactions as the number of pennies in circulation continues to dwindle,” Brennan Duckett, director of regulatory and policy at NACS, said in the release.
Dive Insight:
The legislation had two votes in both the House and Senate due to an amendment added in the Senate version when that chamber endorsed the bill in August. That set up a second House vote earlier this month, followed by the second Senate ratification on Monday.
In an emailed statement Tuesday, Dylan Jeon, vice president of government relations for the National Retail Federation, praised passage of the bill as “a solution to a real problem for retailers,” and said the legislation “provides much-needed consistency for both businesses and consumers.”
The association also urged Trump to “sign this bill into law without delay.”
The House bill was cosponsored by Michigan Republican Rep. Lisa McClain and Democratic Rep. Robert Garcia of California. The Senate version was sponsored by Sens. Cynthia M. Lummis (R-WY) and Kirsten Gillibrand (D-NY).
In a Tuesday post on her X social media page, Lummis thanked her current and former Senate colleagues for their support of the bill.
The final batch of pennies was struck last November, nine months after Trump directed the U.S. Treasury to stop making pennies, citing their cost inefficiency. The department estimated $56 million in annual savings by ending penny production. Under the bill, pennies will still be produced as collectible coins.
Beyond its rounding language, the legislation also directs the Treasury Department to explore alternative metal options using zinc instead of copper for the nickel to lower production costs for the 5-cent coin.
The bill first passed by the Senate included an amendment by Massachusetts Sen. Elizabeth Warren that requires the Treasury Department to notify Congress of any future currency discontinuation, along with a transition plan, according to two retail industry trade associations. That change to the bill set up the subsequent second votes for the House and Senate.
https://abcnews.com/US/wireStory/congress-votes-end-production-penny-after-234-years