[Congressional Record Volume 172, Number 114 (Tuesday, July 14, 2026)]
[House]
[Pages H4432-H4438]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMMON CENTS ACT
Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and
pass the
[[Page H4433]]
bill (H.R. 3074) to direct the Secretary of the Treasury to stop
minting the penny, to require cash transactions to be rounded up or
down to the nearest five cents, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3074
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Common Cents Act''.
SEC. 2. SPECIFICATIONS OF 5-CENT COINS AND CEASING PRODUCTION
OF ONE-CENT COINS.
Section 5112 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``weighs 5 grams.'' and
inserting the following: ``weighs--
``(A) 5 grams, with respect to such coin that is an alloy
of copper and nickel; or
``(B) between 4 and 6 grams, with respect to such coin as
described in subsection (c).''; and
(B) in paragraph (6)--
(i) by striking ``except as provided under subsection (c)
of this section,''; and
(ii) by striking ``and weighs 3.11 grams'';
(2) in subsection (b)--
(A) in the sixth sentence--
(i) by inserting ``either'' before ``an alloy''; and
(ii) by inserting ``or a composition described in
subsection (c)'' before the period;
(B) by inserting ``with respect to such coins that are an
alloy of copper and nickel'' after ``nickel required''; and
(C) by striking ``Except'' through ``zinc'' and inserting
``The one-cent coin is composed of copper and zinc'';
(3) by amending subsection (c) to read as follows:
``(c) 5-cent Coin.--
``(1) In general.--The 5-cent coin may be a coin with an
inner layer of zinc and an outer layer of nickel.
``(2) Composition.--The Secretary may prescribe the
composition of zinc and nickel in the 5-cent coin, subject to
testing and evaluation that such composition--
``(A) reduces the cost incurred to produce such coin; and
``(B) to the greatest extent practicable, has a minimal
adverse impact on machines designed to accept coins.''; and
(4) by adding at the end the following:
``(bb) Ceasing Production of One-cent Coin.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary shall cease production of one-cent coins
for general circulation, but may continue to produce and
issue one-cent coins for sale as numismatic items.
``(2) No effect on legal tender.--Any one-cent coin that is
minted and issued on any date before the date of the
enactment of this subsection shall remain legal tender for
all debts, public charges, taxes, and dues.''.
SEC. 3. CASH TRANSACTION ROUNDING.
(a) In General.--Any person, including a financial
institution, selling goods or services in a cash transaction
or entering into any other transaction that results in a
payment or transfer of cash between the parties to the
transaction may, if exact change cannot be provided at that
time of such transaction, round the covered amount in the
following manner:
(1) Rounding down.--Except as provided in paragraph (2)(B),
in any case in which the covered amount ends with 1 cent, 2
cents, 6 cents, or 7 cents as the final digit, the amount of
cents in the sum may be rounded down to the nearest amount
divisible by 5 for any person seeking to make payment with
cash.
(2) Rounding up.--
(A) In general.--In any case in which the covered amount
ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final
digit, the amount of cents in the sum may be rounded up to
the nearest amount divisible by 5 for any person seeking to
make payment with cash.
(B) Small transactions.--In any case in which the covered
amount totals $0.01 or $0.02, such amount may be rounded up
to $.05 for any person seeking to make payment with cash.
(b) Additional Authority to Round.--With respect to a
person, including a financial institution, conducting a cash
transaction with a customer of the person, the amount of
cents in the sum of the transaction may be rounded, if such
rounding is in favor of the customer, as follows:
(1) Up to the nearest amount divisible by 5, if the person
is paying the customer in cash.
(2) Down to the nearest amount divisible by 5, if the
customer is paying the person in cash.
(c) Employer Payments to Employees.--
(1) In general.--With respect to an employer providing a
cash payment to an employee in an amount that is not
divisible by 5 cents, if the employer chooses to round the
amount of cents in such payment, the employer shall round the
amount of cents in such payment up to the nearest amount
divisible by 5 cents.
(2) No rounding requirement.--Nothing in this subsection
may be construed to require rounding by an employer described
in paragraph (1) who provides a cash payment to an employee
in an exact amount.
(d) Application.--Subsections (a), (b), and (c) shall not
apply to any transaction for which payment is made by any
demand or negotiable instrument, electronic fund transfer,
check, gift card, money order, credit card, or other like
instrument or method.
(e) Rule of Construction.--Nothing in this Act may be
construed to require any person to round a payment as
described in subsections (a) or (b).
(f) Covered Amount Defined.--In this section, the term
``covered amount'' means--
(1) the total transaction amount, including taxes; or
(2) in the case of a person selling goods or services in a
cash transaction or entering into any other transaction that
results in a payment or transfer of cash between the parties
to the transaction, the amount of change due to the customer
if the customer provides a cash payment that exceeds the
total transaction amount, including taxes.
SEC. 4. TREATMENT OF FEDERAL, STATE, AND TRIBAL LAW WITH
RESPECT TO CASH TRANSACTION ROUNDING.
(a) Federal Law.--Any person selling goods or services in a
cash transaction, including a financial institution, entering
into any other transaction that results in a payment or
transfer of cash between the parties to the transaction shall
not be in violation of any Federal requirement, law,
regulation, or standard based on the adherence to the cash
rounding provisions described in section 3.
(b) State and Tribal Law.--Any person selling goods or
services in a cash transaction, including a financial
institution, entering into any other transaction that results
in a payment or transfer of cash between the parties to the
transaction shall not be in violation of any requirement,
law, regulation, or standard of a State, Tribe, or a
political subdivision of a State based on the adherence to
the cash rounding provisions described in section 3.
(c) Rule of Construction.--Nothing in this Act or of any
order thereunder shall excuse noncompliance with any Federal,
State, Tribal, or local law, regulation, ordinance, or
requirement establishing a minimum wage, providing for
overtime pay requirements, or providing for paid leave.
SEC. 5. STRATEGIC PLAN AND REPORT ON COIN TERMINAL OPERATIONS
AND COIN DISTRIBUTION STABILITY.
(a) Strategic Plan and Report.--Not later than 90 days
after the date of the enactment of this Act, the Board of
Governors of the Federal Reserve System shall submit to the
covered committees and make publicly available a report that
outlines a strategic plan for the acceptance of penny orders
and deposits at commercial coin terminals providing services
under agreements with the Federal reserve banks nationwide,
including--
(1) a description of the Board's approach to limiting
disruptions in penny supply and maintaining the stability of
and efficiency of the coin distribution system, to the
greatest extent practicable;
(2) an evaluation of such coin terminals where the Federal
reserve banks no longer accept penny deposits or penny
orders;
(3) an assessment of whether processing penny deposits or
penny orders at such coin terminals could mitigate any
challenges related to ceasing the production of the penny,
including challenges related to the implementation of
rounding practices;
(4) an assessment by the Secretary of the Treasury, which
the Secretary shall conduct and deliver to the Board not less
than 60 days after the date of enactment of this Act--
(A) on the impact of penny supply and demand disruptions,
and rounding practices for check cashing, on low-income
communities, older consumers, debanked, unbanked, and
underbanked individuals, including feedback from State or
local entities; and
(B) that includes recommendations to the Congress to
address any adverse impacts identified under subparagraph
(A); and
(4) any additional considerations the Board determines
relevant to maintaining penny distribution stability.
(b) Evaluation.--
(1) In general.--Not later than 6 months after submission
of the report required under subsection (a), the Board of
Governors of the Federal Reserve System shall submit to the
covered committees and make publicly available a report that
evaluates the progress of implementing the strategic plan
described in subsection (a), including--
(A) any material changes to the plan; and
(B) any identified or emerging stress in the penny
distribution system.
(2) Successive reports.--The Board of Governors of the
Federal Reserve System shall submit to the covered committees
and make publicly available 2 additional reports that
evaluate the progress described in paragraph (1) on dates
that are not later than--
(A) 18 months after the submission of the report required
under subsection (a); and
(B) 30 months after the submission of the report required
under subsection (a).
SEC. 6. DEFINITIONS.
In this Act:
(1) Covered committees.--The term ``covered committees''
means--
(A) the Committee on Financial Services of the House of
Representatives; and
(B) the Committee on Banking, Housing, and Urban Affairs of
the Senate.
(2) Financial institution.--The term ``financial
institution'' means any person, other
[[Page H4434]]
than an individual, the business of which is engaging in
financial activities in section 4(k) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(k))
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentleman from Massachusetts (Mr. Lynch)
each will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL of Arkansas. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days to revise and extend their remarks
and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL of Arkansas. Mr. Speaker, I include in the Record the CBO
estimate for this legislation.
EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION CONSIDERED UNDER SUSPENSION OF THE RULES IN THE HOUSE OF REPRESENTATIVES WEEK OF JULY 13, 2026
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Additional
Effect on Direct Information on Suspension Bill
Bill Number Title Spending Effect on Revenues Direct Spending and Text at
Revenue Effects doc.house.gov
--------------------------------------------------------------------------------------------------------------------------------------------------------
H.R. 3074........................ Common Cents Act, as Increase by Less None............... ................... ........... https://
amended. Than $500K. docs.house.gov/
billsthisweek/
202607413/
HR3074_SUSxml.PDF
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Mr. HILL of Arkansas. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today on the House floor in support of Republican
Conference Chairwoman McClain's bill, the Common Cents Act.
This is a simple, common ``cents'' bill aimed at saving taxpayer
dollars and modernizing a part of our currency system that no longer
makes economic sense.
The numbers speak for themselves. According to an audit of the United
States Mint, it costs $3.69 to make one penny.
That is the 19th year in a row, Mr. Speaker, the government has spent
more to make a penny than a penny is worth.
Last year alone, taxpayers lost more than $85 million producing
pennies.
Chairwoman McClain's bill simply codifies President Trump's directive
to the Mint to stop producing pennies.
Of course, we have to be practical. If we are going to no longer make
pennies, people are likely to use more nickels. The problem is that
nickels aren't exactly a bargain either and the gentleman from
Massachusetts knows it.
They cost nearly 14 cents to produce, so we need to make sure we
don't solve one problem by creating another one. That is why Mrs.
McClain's bill also gives the U.S. Treasury Secretary the authority to
move to a lower cost, zinc-based nickel to ensure that increased nickel
demand is not mitigating the savings due to the elimination of the
penny.
The bill also addresses something retailers and consumers are already
experiencing. With fewer pennies available, many cash transactions are
rounded to the nearest nickel.
H.R. 3074 provides a clear, uniform standard for how these
transactions can be rounded, giving businesses certainty and ensuring
everyone is playing by the same rules.
This bill is about good stewardship of taxpayer dollars. It is about
recognizing when government can do things more efficiently, making
smart updates where they are needed, and saving money in the process.
Mr. Speaker, I urge my colleagues to support H.R. 3074, and I reserve
the balance of my time.
{time} 1450
Mr. LYNCH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 3074, the Common Cents Act,
sponsored by Representative McClain. I thank Representative McClain,
along with Representative Robert Garcia, for their work on this
legislation.
The idea to end penny production is not a new one. In fact, other
countries, like Canada, Australia, and New Zealand, have stopped
producing pennies themselves. However, many of these countries executed
this plan through a deliberate and meaningful process.
Unlike the approach taken by other countries, in February 2025,
President Donald Trump abruptly announced on his Truth Social media
account that he directed the Treasury to stop minting pennies. This
decision, not surprisingly, ignored the critical role and
constitutional authority of Congress in regulating the currency.
While the Secretary of the Treasury did carry out President Trump's
orders, the administration failed to provide a strategic plan or
guidance for the public on how to handle this change, which would
impact all segments of the economy.
This sudden decision is emblematic of how the administration carries
out policy. They do it suddenly, without expert engagement, without
feedback, and without consideration of potential harms.
For these reasons, I was glad to see that Ranking Member Waters, the
gentleman from Arkansas (Mr. Hill), Representative McClain, and
Representative Garcia worked together for over a year to thoughtfully
provide much-needed clarity to businesses and consumers in this
legislation.
In its current form, this bill has made significant improvements from
when it was first marked up in our committee. As drafted, the bill now
allows businesses to round cash transactions if exact change cannot be
provided, and it also authorizes businesses to continue to round in
favor of customers.
This legislation also requires the Federal Reserve to prepare a
strategic plan in connection with managing the circulation of the
penny. Additionally, the bill will now grapple with potential
unintended consequences that come from ending penny production, like
rounding cash transactions on low-income and unbanked communities and
more.
Mr. Speaker, I congratulate the gentleman from Arkansas for his
leadership on this. I urge my colleagues to support this bill, and I
reserve the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield 3 minutes to the
gentlewoman from Michigan (Mrs. McClain), our Republican Conference
chair and the author of this bill. I really just ask her for a penny
for her thoughts.
Mrs. McCLAIN. Mr. Speaker, I thank Chairman Hill for his help on
this.
Mr. Speaker, I rise today in support of H.R. 3074, the Common Cents
Act. This is a straightforward bill that accomplishes one commonsense
goal. It stops the Federal Government from losing money on a coin that
almost no one uses.
Here is the problem: Every penny we mint costs the taxpayers nearly 4
cents. Think about that. We are spending 4 cents to make 1 cent. Last
year alone, that absurd math cost the American taxpayers more than $85
million. I think we can be a better steward of the taxpayers' money
than that.
As a businesswoman, I can assure you that no businessowner in my
district or myself would ever spend four times as much to make $1. Yet,
that is exactly how Washington has managed the penny year after year.
Quite frankly, that does not make sense.
The Common Cents Act fixes it. It directs the Treasury to stop
minting the penny for general circulation, and quite frankly, that is
it.
It does not take away a single penny that somebody already owns.
Every penny in your pocket, every penny in your piggy bank, and every
penny in that jar on your counter stays as legal tender if it is
unused.
This is not a radical idea. President Trump called for it. It is his
commonsense idea, and it should become law.
I introduced this bill with Congressman Robert Garcia, and it
cleared the Committee on Financial Services with strong bipartisan
support.
Republicans and Democrats don't agree on much in this town, but we do
agree on this: We shouldn't be wasting $85 million a year to keep
minting pennies.
[[Page H4435]]
Not only do we agree, but, Mr. Speaker, I include in the Record
letters of support from local industry leaders who also support this
commonsense piece of legislation.
America's Credit Unions,
Washington, DC, July 13, 2026.
Re Credit Union Support for H.R. 3074, the Common Cents Act.
Hon. Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Hon. Hakeem Jeffries,
House Minority Leader, House of Representatives, Washington,
DC.
Dear Speaker Johnson and Leader Jeffries: On behalf of
America's Credit Unions, I am writing to you to share our
support for the updated bipartisan compromise language found
in H.R. 3074, the Common Cents Act, and its efforts to
address the phaseout of penny production and the emerging
challenges surrounding penny circulation. America's Credit
Unions is the voice of consumers' best option for financial
services: credit unions. We advocate for policies that allow
the industry to effectively meet the needs of their over 146
million members nationwide.
With penny production ending, inventories at Federal
Reserve distribution sites are shrinking without a national
rounding standard, creating uncertainty and operational
challenges for credit unions and other financial
institutions. H.R. 3074 also addresses the practical
challenges associated with the nation's coin supply by
establishing a national framework for cash transaction
rounding. The bill permits retailers to round transactions
ending in 1, 2, 6, or 7 cents down, and those ending in 3, 4,
8, or 9 cents up, to the nearest five cents. Employers who
choose to round cash wages must round up, though nothing
requires them to round at all. Electronic payment methods
(cards, checks, EFFs, etc.) are excluded, ensuring that
electronic payments continue to be charged the exact purchase
amount. America's Credit Unions views this as a practical
solution that can reduce disruptions caused by coin
shortages, lower cash-handling costs for businesses, and
simplify transactions for consumers without eliminating the
use of cash.
The legislation also provides clarity regarding the
treatment of federal, state, and Tribal law. H.R. 3074 is
designed to establish a consistent federal standard for cash
rounding while recognizing the authority of states and Tribal
governments in areas not expressly addressed by the Act.
Credit unions operate across multiple states and need clear
direction on what practices are permissible during the
interim period before Congress establishes a nationwide
standard. This approach helps to promote uniformity for
financial institutions and merchants operating across
multiple jurisdictions, while respecting existing legal
frameworks and minimizing uncertainty regarding compliance
and consumer protections.
Lastly, the Common Cents Act requires the Federal Reserve
Board to develop a strategic plan and periodic reporting on
coin terminal operations and the stability of the nation's
coin distribution system. These provisions will help to
improve coordination among the entities responsible for coin
production, processing, transportation, and distribution,
helping policymakers identify vulnerabilities before they
result in widespread shortages.
America's Credit Unions recognizes that maintaining a
reliable coin supply is an important component of the broader
payments ecosystem, particularly for credit union members and
small businesses that continue to rely on cash transactions.
We would also encourage the Federal Reserve Board to work
with the National Credit Union Administration and other
federal banking regulatory agencies to clarify acceptable
interim rounding practices for cash transactions, whether
rounding should occur at the total bill rather than at the
item level, whether sales tax should be calculated before or
after rounding, and the types of receipt disclosures that are
recommended, including the use of a separate rounding
adjustment line. By requiring greater oversight and planning,
the legislation seeks to strengthen the resilience of the
nation's coin infrastructure and reduce the likelihood of
future disruptions.
America's Credit Unions believes that H.R. 3074, the Common
Cents Act, reflects important principles of consumer choice,
market competition, and innovation. Providing merchants and
financial institutions with additional routing options can
encourage payment networks to enhance security, efficiency,
and customer service while supporting a strong and reliable
electronic payments system. We thank House Financial Services
Committee Chairman French Hill, Ranking Member Maxine Waters,
and Representatives Lisa McClain and Robert Garcia for their
leadership on this issue. On behalf of our nation's credit
unions and their more than 146 million credit union members,
we urge you to support this legislation when it comes before
the House this week.
Should you have any questions or require any additional
information, please feel free to contact me or America's
Credit Unions' Senior Vice President of Advocacy Greg Mesack.
Sincerely,
Kathleen Coulombe,
Chief Advocacy Officer.
____
United Steelworkers,
July 10, 2026.
Re United Steelworkers supports passage of H.R. 3074, the
Common Cents Act.
House of Representatives,
Washington, DC.
Dear Representative: On behalf of the 850,000 members of
the United Steelworkers union (USW), I write to express our
support for the Common Cents Act, H.R. 3074, as amended. This
legislation is expected to be considered under suspension of
the rules next week. This bill would authorize the use of
zinc as an alternative metal in the production of nickels.
The Common Cents Act would help protect American jobs,
support domestic manufacturing, and generate savings for the
American taxpayer.
USW represents workers across a wide range of sectors,
including more than 150 highly skilled employees at Artazn in
Greeneville, Tennessee. These workers produce zinc coin
blanks that were historically used for the penny. When H.R.
3074 was first introduced, it called for eliminating the
penny altogether--framed as a cost-saving measure, but one
that would have directly jeopardized these jobs. The fiscal
case for eliminating the penny also failed to acknowledge the
far higher cost of producing a nickel, which is currently
about 14 cents per coin, undermining the rationale behind the
proposal.
Fortunately, Representative McClain has offered an
amendment to her original legislation, which creates a new
opportunity for these workers to continue supplying zinc
blanks to the U.S. Mint--now for the use of nickels. The
proposed zinc-based alternative costs less than five cents to
produce, has been actively tested by the U.S. Mint, and has
demonstrated strong performance in terms of durability,
functionality, and cost-effectiveness.
Our members are already feeling the effects of ongoing
workforce reductions and hiring freezes driven by attrition.
These challenges are placing added strain on workers, their
families, and the communities that depend on good-paying
manufacturing jobs. We cannot afford further delays.
Immediate action is needed to help stabilize employment,
support domestic production, and preserve critical
manufacturing capacity here in the United States.
USW appreciates the work that Chairman Hill and Ranking
Member Waters have done to move this legislation forward. USW
strongly supports H.R. 3074, as amended and urges the House
to suspend the rules and pass the bill. This legislation now
provides a practical path forward that preserves jobs,
supports American industry, and delivers savings to
taxpayers. We respectfully urge you to support this amended
version of the Common Cents Act, H.R. 3074.
Sincerely,
Roxanne D. Brown,
International President.
____
American Bankers Association,
July 13, 2026.
Hon. Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Hon. Hakeem Jeffries,
House Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: On
behalf of the American Bankers Association (ABA), I am
writing to express our strong support for H.R. 3074, the
Common Cents Act, led by Reps. Lisa McClain (R-MI) and Robert
Garcia (D-CA).
This important commonsense legislation would provide a
clear and practical framework for cash rounding when exact
change cannot be provided, while clarifying that checks,
electronic fund transfers, credit cards, gift cards, money
orders, and similar non-cash payment methods are not subject
to rounding. This approach would help consumers, businesses,
and financial institutions adapt with minimal disruption.
Having all parties operate under one set of rules would
benefit the entire marketplace.
By directing the Secretary of the Treasury to cease
production of the one-cent coin while preserving the legal
tender status of existing pennies, this bill would help
modernize the nation's coinage system and reduce unnecessary
costs associated with the production, handling, and
distribution of pennies. The required strategic plan and
report from the Board of Governors of the Federal Reserve
about supporting penny orders and deposits at their
facilities would benefit financial institutions and consumers
alike.
Thank you for your leadership on this issue and for
advancing a thoughtful reform that promotes efficiency while
protecting consumers and preserving stability in the cash
distribution system. ABA looks forward to working with you
and your colleagues as H.R. 3074 moves through Congress and
strongly urges its timely passage by the House, followed by
prompt consideration and passage by the Senate.
Sincerely,
Naomi Camper,
Chief Policy Officer.
[[Page H4436]]
____
Artazn,
Greeneville, TN, July 13, 2026.
Re Support for H.R. 3074.
Hon. Lisa McClain,
House of Representatives,
Washington, DC.
Hon. Robert Garcia,
House of Representatives,
Washington, DC.
Dear Representatives McClain and Garcia: On behalf of
Artazn, the nation's leading manufacturer of coinage
materials and a supplier to more than 30 mints around the
world, including the U.S. Mint, I write to commend your
leadership in sponsoring H.R. 3074, the Common Cents Act.
This bipartisan legislation takes a practical, fiscally
responsible approach to modernizing U.S. coinage by giving
the Treasury Department the option to order production of a
lower cost, zinc-based nickel. Artazn has spent several years
working with a wide range of industry stakeholders to develop
a zincbased nickel blank that can significantly reduce
taxpayer losses on this important coin.
This reform is both timely and necessary. According to the
U.S. Mint's most recent Annual Report, it now costs
approximately 13.3 cents to manufacture each 5-cent coin.
With penny production having ended, nickel production is
likely to increase to meet transactional demand, making it
even more important to address the nickel's unsustainable
production cost. By authorizing the Mint to produce a zinc-
based nickel, H.R. 3074 provides a common-sense solution that
has the potential to eliminate the tens of millions of
dollars in losses from nickel production that the Treasury
Department incurs every year.
We applaud House Financial Services Committee Chairman
French Hill and Ranking Member Maxine Waters for their
leadership in working together on a bipartisan basis to
incorporate amendments to the bill following the Committee's
markup in July 2025. As evidenced by the broad and diverse
array of organizations supporting H.R. 3074, including the
United Steelworkers with whom Artazn works closely, these
amendments were thoughtfully constructed to address the
concerns of all stakeholders.
Again, we thank you for your leadership on this vitally
important issue. Artazn respectfully urges the Congress to
pass H.R. 3074, and we look forward to continuing to work
with all interested parties committed to modernizing the
Nation's circulating coinage.
Sincerely,
Mike Schubert,
President.
____
July 13, 2026.
Re Main Street Businesses Urge Passage of the Common Cents
Act.
Hon. Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Hon. Hakeem Jeffries,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: The
undersigned associations represent Main Street businesses
that serve and employ millions of Americans across the nation
every day. These businesses--large and small--must be able to
continue serving their communities in ways that are fair to
everyone and avoid unintended operational hurdles that are
being caused by the halt in U.S. penny production. We write
to urge you and your colleagues to quickly pass the
bipartisan Common Cents Act (H.R. 3074) as amended when it
comes to a vote on the House floor this week.
We deeply appreciate the hard work and consensus-building
efforts to reach this bipartisan agreement, and applaud
Representatives Lisa McClain (R-MI) and Robert Garcia (D-CA)
as bill sponsors and House Financial Services Committee
Chairman French Hill (R-AR) and Ranking Member Maxine Waters
(D-CA) and their staffs for their leadership on this critical
issue.
Since the U.S. Mint produced its last pennies over a year
ago, businesses across the country have faced cascading
impacts from the lack of pennies in circulation, operating
under constant uncertainty about how handle cash transactions
when exact change is unavailable. All the potential options
today create the risk of potential legal challenges and
significant financial losses.
As of this month, more than 15 states have enacted laws
governing cash rounding. This is confusing to businesses and
their customers. We need a clear standard from Congress
allowing businesses to round cash transaction amounts and a
safe harbor from liability in doing so fairly. The Common
Cents Act as amended provides the exact solution Main Street
businesses and their customers need.
Businesses and their customers across the country deserve
certainty and consistency in their everyday cash transactions
and need this legislation to pass Congress as quickly as
possible. As such, we urge you and your colleagues to vote
YES on the Common Cents Act to ensure that we can continue to
serve our customers without interruption.
Sincerely,
American Beverage Licensees,
American Booksellers Association,
American Hotel & Lodging Association,
Coalition of Franchisee Associations,
Energy Marketers of America,
FMI--The Food Industry Association,
International Franchise Association,
Merchant Advisory Group,
National Association of Convenience Stores,
National Grocers Association,
National Restaurant Association,
National Retail Federation,
NATSO, Representing America's Travel Centers and Truck
Stops,
OHI--Outdoor Hospitality Industry,
Retail Industry Leaders Association,
SIGMA: America's Leading Fuel Marketers.
____
Kroger ,
July 13, 2026.
Hon. Lisa McClain,
Washington, DC.
Hon. French Hill,
Chairman, House Financial Services Committee,
Washington, DC.
Hon. Robert Garcia,
Washington, DC.
Hon. Maxine Waters,
Ranking Member, House Financial Services Committee,
Washington, DC.
Dear Rep. McClain, Rep. Garcia, Chairman Hill and Ranking
Member Waters: Kroger writes to thank Reps. McClain and
Garcia for leading the efforts to introduce H.R. 3074, the
Common Cents Act, and for the efforts of Chairman Hill and
Ranking Member Waters to advance this bipartisan legislation.
Kroger urges your colleagues to vote YES on this important
bill which would address the ceased minting of the penny by
establishing a federal law regarding rounding of cash
transactions when pennies are unavailable to make exact
change. H.R. 3074 provides the legal pathway and protection
for rounding on cash transactions when exact change is not
available--providing parity across the country for Kroger
customers and grocers alike.
The final minting of the 1-cent coin by the U.S. Mint at
the directive of the U.S. Treasury Department was in June
2025, and the final inventory of these pennies was shipped to
Federal Reserve regional distribution vaults in August 2025.
Since the ceased minting of the penny, Kroger's nearly 2,800
stores across the country have experienced an inability to
provide exact change to cash-paying customers and have had no
choice but to round to the nearest nickel when exact change
is unavailable. In the absence of a federal law specifying
the parameters of rounding cash transactions to the nearest
nickel, there has been a lot of confusion for our customers,
and Kroger and other main street grocers have been exposed to
possible litigation and potential violation of federal,
state, and local laws. Without enactment of a federal law to
address penny rounding, many states have enacted laws or
guidance which has created a patchwork of differing
requirements across the country--an untenable situation for
our customers and our stores.
The federal rounding law established under H.R. 3074
provides clarity for Kroger customers and addresses our
concerns, as one of the nation's largest SNAP retailers,
about violating the SNAP equal treatment provisions since the
ceased minting of the penny. Without exact change, our stores
have no choice but to round to the nearest nickel for cash-
paying customers, meaning these customers would be paying a
slightly different total than SNAP customers who use a SNAP
EBT card for purchases. If Kroger, as a SNAP retailer without
exact change, is forced into the position of rounding cash
transactions, it would be in violation of the SNAP equal
treatment provisions which prohibit both negative treatment
(discriminatory practices) and preferential treatment
(incentive practices). H.R. 3074 addresses the implications
from the ceased minting of the penny on this SNAP policy and
would allow Kroger to continue serving all our customers
consistently and lawfully, regardless of payment method.
The Common Cents Act, H.R. 3074:
Specifies the ability of businesses and financial
institutions, but does not mandate, to round down (amount
ends with 1, 2, 6, 7) and round up (amount ends with 3, 4, 8,
9) to the nearest 5 cents for cash transactions when pennies
are not available to make exact change, enables businesses to
choose to round in favor of a customer.
Provides protection and clarity that businesses will not be
in violation of federal, state, tribal, or local laws
pertaining to the ceased minting of the penny if rounding,
stipulated under the bill, is utilized for cash transactions;
this includes providing grocers with protection from
potential violations of the SNAP equal treatment provisions
when rounding for non-SNAP cash transactions.
Indicates that rounding only applies to cash transactions
and does not apply rounding to any demand or negotiable
instrument, electronic fund transfer, check, gift card, money
order, credit card, or other like instrument or method.
Stipulates that for employer-to-employee payments in cash,
the amount must be rounded up to the nearest 5 cents but
nothing in this federal bill requires employers to pay
employees in cash payments.
Authorizes the ceased minting of the penny and modifies the
metal composition of the 5-cent coin.
We strongly support H.R. 3074 and urge a YES vote on
passage. The Common Cents Act provides the long-needed
clarity for grocery customers and retailers when exact change
is not available for cash transactions.
Thank you for your leadership,
Evan Sarris,
Deputy Director, Government Relations.
[[Page H4437]]
____
National Armored Car Association,
July 13, 2026.
Hon. Lisa McClain,
House of Representatives
Washington, DC.
Hon. Robert Garcia,
House of Representatives
Washington, DC.
Dear Representatives McClain and Garcia: On behalf of the
National Armored Car Association (NACA), I write to express
our support for H.R. 3074, the Common Cents Act, which
directs the Treasury to cease minting the penny and
establishes a framework for rounding cash transactions to the
nearest five cents. We appreciate your leadership on this
legislation as it comes to the House floor this week.
Formed in 1929, NACA is a business association that brings
together the three major companies of the armored car
industry--Brink's, Garda, and Loomis--with a focus on
protecting and promoting the common interests of the
industry. NACA's members provide secure transportation and
cash management services for the Federal Reserve, financial
institutions, state and local governments, and private
businesses and individuals across the United States and
internationally.
NACA members operate the commercial coin terminals that,
under contract with and on behalf of the Federal Reserve
Banks, hold Reserve Bank coin inventories and receive
deposits from and fulfill coin orders for depository
institutions nationwide. We support the bill's direction to
the Federal Reserve to develop and report on a strategic plan
for coin terminal operations as the transition away from new
penny production continues. We likewise support the provision
permitting Treasury to update the composition of the 5-cent
coin, and we appreciate that the bill preserves the
longstanding principle--reflected in prior GAO and U.S. Mint
analyses--that any such change be tested to minimize impact
on coin-handling equipment; our members would welcome the
opportunity to serve as a resource to Treasury in that
testing.
We appreciate the work of Chairman Hill and Ranking Member
Waters, and the Committee on Financial Services, in bringing
this legislation to the floor on a bipartisan basis. Thank
you for your consideration. We urge members of the House to
support H.R. 3074.
Sincerely,
Basil Thomson,
Executive Director,
National Armored Car Association.
____
National Restaurant Association,
July 13, 2026.
Hon. Mike Johnson,
Speaker, House of Representatives,
Washington, DC.
Hon. Hakeem Jeffries,
Minority Leader, House of Representatives,
Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: On
behalf of the restaurant industry, we urge Congress to pass
the Common Cents Act (H.R. 3074) to establish national
rounding guidance and a safe harbor for restaurants that need
to round when exact change cannot be provided. Restaurant
operators transact more than $1 trillion in sales annually
and more than 1 in 4 of those purchases are paid for in cash.
When operators can't provide exact change, it creates
friction at checkout, frustrating customers. In a highly
competitive industry, like restaurants, any change to the
hospitality our customers expect could mean a lost return
sale for an operator.
Founded in 1919, the National Restaurant Association
represents the U.S. restaurant and foodservice industry,
which includes more than 1 million establishments and employs
15.7 million Americans. In 2025, the industry generated $1.4
trillion in sales and remains one of the nation's largest
employers--accounting for one in ten U.S. jobs. Nearly 90
percent of restaurant establishments are small businesses
with fewer than 50 employees, underscoring the industry's
vital role in supporting local economies nationwide.
The Association appreciates the bipartisan dedication of
Congresswoman McClain, Congressman Garcia, Chairman Hill and
Ranking Member Waters to craft this bipartisan solution.
We hope you can support the Common Cents Act so that
restaurant operators across the country can continue to
provide the highest level of hospitality to our cash-paying
customers.
Sincerely,
Dan Roehl,
Vice President, Federal Government Relations.
____
The Food Industry Association,
July 10, 2026.
Hon. Lisa McClain (R-MI),
House of Representatives,
Washington, DC.
Hon. French Hill (R-AR),
Chairman, House Financial Services Committee,
Washington, DC.
Hon. Robert Garcia (D-CA),
House of Representatives,
Washington, DC.
Hon. Maxine Waters (D-CA),
Ranking Member, House Financial Services Committee,
Washington, DC.
Dear Representatives McClain and Garcia, Chairman Hill, and
Ranking Member Waters: On behalf of FMI--The Food Industry
Association, I write with our endorsement of the revised
Common Cents Act, H.R. 3074, to establish a federal law
pertaining to rounding of cash transactions when pennies are
unavailable to make exact change. Enactment of H.R. 3074 is
of the utmost importance for grocery customers and food
retailers alike.
FMI is very grateful for the leadership of Representatives
McClain and Garcia in sponsoring H.R. 3074, and Chairman Hill
and Ranking Member Waters for their thoughtful deliberations
in reaching bipartisan agreement to ensure that clarity on
rounding of cash transactions is provided for customers,
employees, and grocery stores and other main street
businesses around the country.
FMI's retail members, which range in size from independent
operators to regional and large national and international
businesses and brands, operate 45,000 grocery stores and
12,000 supermarket pharmacies. The food industry ultimately
touches the lives of more than 100 million U.S. households
per week. Providing grocery customers with the ability to use
cash for purchases is an important service and is the law in
several states and localities. Not only do grocers accept
cash at registers, self-checkout stations, and vending
machines, but they also offer check-cashing services to
customers and employees.
Since the ceased minting of the penny, grocery stores
across the country have experienced an inability to provide
exact change to cash-paying customers and have had no choice
but to round to the nearest nickel when exact change is
unavailable. In the absence of a federal law specifying the
parameters of rounding cash transactions to the nearest
nickel, there has been a lot of confusion for customers, and
grocers have been exposed to possible litigation and
potential violation of federal, state, and local laws.
Further, without enactment of a federal law, many states have
enacted laws or guidance on rounding cash transactions which
has created a patchwork of differing' requirements across the
country--an untenable situation for customers and grocers.
H.R. 3074 addresses operations and legal concerns that
grocers have had as a result of the ceased minting of the
penny and diminished ability to obtain pennies to make exact
change for cash transactions. The legislation: specifies, but
does not mandate, the ability of businesses to round down and
up to the nearest nickel for cash transactions when pennies
are not available to make exact change, and enables
businesses to choose to round in favor of a customer;
provides protection so that businesses will not be in
violation of federal, state, tribal, or local laws pertaining
to the ceased minting of the penny if rounding under H.R.
3074 is utilized for cash transactions; and stipulates that
for employer-to-employee payments in cash, the amount must be
rounded up to the nearest nickel.
In addition, H.R. 3074 provides clarity for grocery
customers and addresses SNAP retailers' concerns about
violating the SNAP equal treatment provisions since the
ceased minting of the penny. Without exact change, stores
have no choice but to round to the nearest nickel for cash-
paying customers, meaning these customers would be paying a
slightly different total than SNAP customers who use a SNAP
EBT card for purchases. If a SNAP retailer without exact
change is forced into the position of rounding cash
transactions, they would be in violation of the SNAP equal
treatment provisions which prohibit both negative treatment
(discriminatory practices) and preferential treatment
(incentive practices). H.R. 3074 addresses the implications
from the ceased minting of the penny on this SNAP policy.
Again, thank you for your leadership in advancing the
Common Cents Act, H.R. 3074. Enactment of H.R. 3074 is
urgently needed for grocery customers and food retailers to
address confusions and the myriad of operations and legal
concerns caused by the ceased minting of the penny.
Sincerely,
Christine Pollack,
Vice President, Government Relations.
Mrs. McCLAIN. Mr. Speaker, it is time to modernize our currency
policy and bring some commonsense back to Washington. I urge my
colleagues on both sides of the aisle to support this legislation and
vote ``yes.''
Mr. LYNCH. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Garcia), who is also the ranking member of the
Committee on Oversight and Government Reform.
Mr. GARCIA of California. Mr. Speaker, I am proud to co-lead this
legislation with Representative Lisa McClain, and I rise, of course, in
strong support of this bill.
As has been said, we know that a penny costs taxpayers 3.7 cents to
produce, so it makes zero sense to spend almost 4 cents creating only 1
cent.
This bill is common sense. It has bipartisan support, and it saves
taxpayers money and reduces waste.
In 2023 alone, the Mint lost approximately $180 million making
pennies. The reality is that the penny now is just out of date.
As the cost of living increases for many, with folks tapping
technology
[[Page H4438]]
on their phones or cards to pay their bills, we should not be pouring
millions and millions of taxpayer dollars into a coin that is now
rarely used.
This is not a partisan idea. As has been said, countries from all
across the world--Canada, Australia, New Zealand, and others--have
stopped using and producing low-value coins without any issues or
problems for the population.
This bill provides clarity by giving businesses the option, not the
requirement, to round cash transactions to the nearest nickel when
exact change isn't available.
It also ensures that existing pennies, more than 114 billion of them,
will also remain legal tender. Folks can keep those pennies if they
have them at home.
Now, the government should stop spending nearly 4 cents to make 1
cent coins.
The Common Cents Act eliminates a wasteful, obsolete coin while
protecting pennies as legal tender. Let's stop throwing good money
after the bad and pass the Common Cents Act.
Mr. HILL of Arkansas. Mr. Speaker, I yield 3 minutes to the gentleman
from Oklahoma (Mr. Lucas), our chairman of the Task Force on Monetary
Policy, Treasury Market Resilience, and Economic Prosperity. In my
experience of being chairman of the committee on which he serves, he is
a man who always comes to the committee and plans on throwing his 2
cents into every debate.
Mr. LUCAS. Mr. Speaker, I appreciate those comments by the chairman.
Mr. Speaker, I rise today in strong support of the Common Cents Act.
This bill has been over a year in the making with my colleagues Mrs.
McClain and Mr. Garcia from California, and I am proud of the product
that we put forward today.
The 1 cent piece, or the penny as it is commonly known, does indeed
cost almost 4 cents to produce, and 2024 was the 19th consecutive year
the U.S. Government lost money keeping the 1 cent piece in circulation.
That is why this year, the President rightly ordered the Department
of the Treasury to stop wasting hard-earned taxpayer money to produce
the coin and why we are excited to move forward in codifying this
action.
The Common Cents Act also gives flexibility to the Mint to produce a
nickel with cheaper materials. In 1866, Congress mandated the nickel be
produced from an alloy of copper and nickel, and we haven't updated the
composition since. This bill gives the Mint the flexibility to produce
a cheaper coin, while retaining Congress' responsibility of coining
money.
Finally, the bill provides certainty for businesses in their cash
transactions with customers without mandating price controls from the
government.
We are also proud to boast the endorsements of the National Retail
Federation, the National Grocers Association, the United Steelworkers
International Union, and the American Bankers Association, among many
others.
I must take one moment and note with the passing of the 1 cent piece,
it is a coin that was mandated in the 1792 Mint Act, a coin that when
it was originally produced in 1793 by the United States Mint in that
very fledgling facility in Philadelphia, represented 1 cent of pure
copper.
{time} 1500
Over time, with inflation and the changing consumer patterns, we went
to the smaller 1-cent piece we now use in 1857. Now, all of this time
later, the 1-cent piece has passed its prime and time.
Yet, it was a coin that was important to commerce from the founding
of the country. It was an important coin because every American at
least had a few cents in their pocket, even in the toughest times, over
the last 200 years.
Now we move forward. Again, I thank my colleagues on both sides of
the aisle on the Financial Services Committee for making these wise
decisions in codifying it.
Mr. LYNCH. Mr. Speaker, I congratulate Mrs. McClain and Mr. Garcia
for their good work. The administration has already ceased penny
production, but this legislation does the necessary work of providing
meaningful guidance for consumers and businesses across the country.
Mr. Speaker, I again urge my colleagues to support this bill, and I
yield back the balance of my time.
Mr. HILL of Arkansas. Mr. Speaker, I yield myself the balance of my
time.
Mr. Speaker, I thank the gentleman from Massachusetts and the
minority for helping to make this a strong bipartisan bill to do
something that is common sense, with no pun intended. In fact, for all
of the good reasons that Mr. Lucas and Mrs. McClain outlined, this is
the right decision at the right time for the American people.
Mr. Speaker, I remind both the bankers across the country, the
retailers, and all of the consumers out there that, as noted by Mr.
Garcia, there are well over 100 billion pennies floating around out
there in jars and drawers and cash registers across the country. You
may still use those pennies until your heart is content.
Mr. Speaker, I urge a ``yes'' vote on this bill, and I yield back the
balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 3074, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
The title of the bill was amended so as to read: ``A bill to direct
the Secretary of the Treasury to stop minting the penny, to permit cash
transactions to be rounded up or down to the nearest five cents, and
for other purposes''.
A motion to reconsider was laid on the table.
____________________