[Congressional Record Volume 172, Number 144 (Monday, September 14, 2026)]
[House]
[Pages H5599-H5602]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1910
COMMON CENTS ACT
Ms. DE LA CRUZ. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 10167) 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 5 cents, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 10167
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
[[Page H5600]]
(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
(5) 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. DISCONTINUATION OF CIRCULATION OF COINS.
Section 5111 of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``and'' at the end;
(B) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(C) by adding at the end the following:
``(5) may discontinue the minting for circulation of any
coin that is described in paragraph (1) (and that is minted
for circulation, as of the date of enactment of this
paragraph) only in accordance with the procedures described
in subsection (e).''; and
(2) by adding at the end the following:
``(e) Discontinuation.--
``(1) Definition.--In this subsection, the term `covered
committees' means--
``(A) the Committee on Banking, Housing, and Urban Affairs
of the Senate; and
``(B) the Committee on Financial Services of the House of
Representatives.
``(2) Requirements.--The Secretary of the Treasury may not
discontinue the minting for circulation of a coin described
in subsection (a)(5) unless the Secretary--
``(A) not later than 60 days before that discontinuation,
and in coordination with the Director of the United States
Mint, submits to the covered committees notice regarding that
discontinuation, which shall include--
``(i) a description of the reasoning for that
discontinuation, including fiscal and operational
considerations; and
``(ii) a comprehensive plan for phasing out the circulating
coin, taking into consideration--
``(I) the potential impacts of that discontinuation on
consumers and businesses; and
[[Page H5601]]
``(II) the potential economic impacts of that
discontinuation; and
``(B) not later than 30 days after the date on which the
Secretary submits the notice required under subparagraph (A),
provides a briefing to the covered committees regarding the
plan for implementing that discontinuation.''.
SEC. 7. 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 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 (Mr. Hurd of Colorado). Pursuant to the rule,
the gentlewoman from Texas (Ms. De La Cruz) and the gentleman from
California (Mr. Sherman) each will control 20 minutes.
The Chair recognizes the gentlewoman from Texas.
General Leave
Ms. DE LA CRUZ. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days to revise and extend their remarks and to
include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Texas?
There was no objection.
Ms. DE LA CRUZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I include in the Record the CBO estimate for this bill.
EFFECTS ON DIRECT SPENDING AND REVENUES OF LEGISLATION CONSIDERED UNDER SUSPENSION OF THE RULES IN THE HOUSE OF
REPRESENTATIVES, WEEK OF SEPTEMBER 14, 2026
----------------------------------------------------------------------------------------------------------------
Suspension Bill
Bill Number Title Effect on Direct Effect on Revenues Text at
Spending docs.house.gov
----------------------------------------------------------------------------------------------------------------
H.R. 10167...................... Common Cents Act.. Increase by Less None.............. https://
Than $500K. docs.house.gov/
billsthisweek/
20260914/BILLS-
119hr10167ih.pdf
----------------------------------------------------------------------------------------------------------------
Ms. DE LA CRUZ. Mr. Speaker, I rise today in support of Republican
Conference Chairwoman McClain's Common Cents Act. Rather than spending
more money producing a coin than the coin itself is worth, this
straightforward, commonsense bill ensures that Congress is a good
steward of taxpayers' dollars by providing long-term fiscally
responsible solutions.
Mr. Speaker, let's look at the numbers. According to an audit of the
United States Mint, it costs $3.69 to make a 1-cent penny. In fact, for
19 consecutive years, the U.S. Government has spent more than one penny
to make one penny. 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 for circulation. However, we also need to make sure we are not
solving one problem by creating another.
If we stop making pennies, then Americans are likely to use more
nickels, and at nearly 14 cents to produce nickels, they aren't exactly
a bargain either. That is why this bill gives the Treasury Secretary
the flexibility to move a lower-cost composite for the nickel, again,
saving taxpayers money.
The bill also provides a clear uniform standard for rounding cash
transactions to the nearest nickel when exact change isn't available,
ensuring our small businesses have the certainty they need.
Importantly, the bill keeps Congress informed by requiring Treasury
to notify the House and Senate and explain their reasoning before
discontinuing any additional circulating coins.
This is very simple. The Federal Government should not spend more
money to make something than it is worth itself. We should look for
savings where we can, modernize outdated practices, and ensure
businesses and consumers have certainty at the register.
Mr. Speaker, this is what responsible stewardship of taxpayer dollars
looks like.
Mr. Speaker, I urge my colleagues to support Chairwoman McClain's
bipartisan Common Cents Act, and I reserve the balance of my time.
Mr. SHERMAN of California. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, I rise in support of H.R. 10167, the Common Cents Act,
sponsored by Representative McClain.
Last year, the President announced on Truth Social--not the best way
to make a government announcement--that Treasury would stop minting
pennies. Frankly, I disagree with almost everything the President does,
but this one makes sense. I have been advocating for the abolition of
the penny for over 20 years in our committee, and it is time that we
move forward on this.
Following this announcement, the Treasury moved forward, and the Mint
has stopped producing pennies. Unfortunately, the decision to stop
minting pennies ignored the authority of Congress in regulating
currency and overseeing a major transition away from producing pennies.
We saw that this abrupt decision resulted in major consequences across
the country that led to penny shortages for banks, retailers, and
consumers and created confusion in the economy.
It is not enough to stop minting pennies. We need a bill that tells
retailers and customers how much they are supposed to pay in nickels,
dimes, and dollars. However, as written, this legislation addresses
many of these issues and establishes much-needed standards and
guidelines going forward.
Since we marked up the Common Cents Act in our committee, this bill
has continued to be meaningfully improved, thanks to the work of our
ranking member, Maxine Waters, and other Financial Services Committee
Democrats, including Representative Garcia.
The Common Cents Act formally directs the Secretary of the Treasury
to stop minting pennies. It also allows the Mint to test a lower-cost
composition for the nickel, which chiefly would be zinc, and to make
use of the zinc that is now going into pennies. Moreover, by using zinc
for the nickel, not only will we save money, but it will be lighter,
and that will be important for the cost of those who are transporting
large quantities of coins, and it will be a little lighter in your
pocket. This bill not only deals with the penny, but it also improves
the nickel.
The bill provides clarity on rounding cash transactions. When I
proposed in committee 20 years ago, and I proposed it at townhalls,
people were concerned that somehow this would lead to higher prices and
that somehow retailers would benefit.
{time} 1920
The fact is, it is the consumer, not the retailer, who determines
whether you buy two nail files at the same time and that happens to
round down, and then buy another two nail files at the same time, and
that transaction is rounded down. I can't imagine anybody doing that to
save a nickel, but it is the consumer, not the retailer, that decides
what goes into the basket. I can't imagine anybody looking at this. If
somebody does care, it is the retailer in control.
We have formal rules here on rounding down when it is 2 cents or 1
cent. That is important for commerce to go forward.
Under this bill, the Federal Reserve would be required to issue a
strategic plan for managing and limiting disruptions in the penny
supply.
Recently, in August, the Senate added a new section that requires the
Treasury to submit notification to the Senate Banking Committee and the
House Financial Services Committee regarding potential plans to
discontinue any coin, among other requirements. This is important
because Congress plays a key role in these processes. There has been
some disruption, and we need to be in a position to manage it.
My focus on the fact that we didn't need pennies arises from the fact
that I used to head the second largest sales
[[Page H5602]]
tax agency. What consumers may not know is that every time you do a
transaction--last year, last decade, 20 years ago--the amount you pay
the retailer is subject to rounding. There is a tax of 5 percent or 8
percent, and the amount you actually owe is $1.125, which is rounded
down.
We have been rounding transactions for a long time in this country.
Now, we will be rounding to the nearest nickel instead of rounding to
the nearest penny.
Further, by eliminating the penny, we create extra room in the cash
register where the penny used to go. That room could be used for a
dollar coin. We all know that it costs more than a dollar to print a
dollar and that a paper dollar wears out.
I look forward to popularizing the dollar coin. This will be a boon
to our transit agencies, vending machines, and others when people use a
dollar coin. Growing up, we had a dollar coin. We just called it a
quarter. We had a quarter. We used it. It was worth about what a dollar
is worth today.
Mr. Speaker, while I am not a big fan of the inflation that has taken
place in my lifetime, I do think it is time to popularize the dollar
coin. I urge my colleagues to support this bill, and I reserve the
balance of my time.
Ms. DE LA CRUZ. Mr. Speaker, I yield 3 minutes to the gentlewoman
from Michigan (Mrs. McClain), the House Republican Conference
chairwoman and sponsor of this bill.
Mrs. McCLAIN. Mr. Speaker, I rise in support of H.R. 10167, the
Common Cents Act.
This is a straightforward bill that does one commonsense thing: It
stops the Federal Government from losing money on a coin that almost no
one uses.
Every penny we mint costs taxpayers nearly 4 cents to make and
distribute--4 cents to make just one penny. In this single year, that
absurd math cost the taxpayers more than $85 million.
As a businesswoman, I can tell you no businessowner in my district
would spend $4 to make $1, but that is exactly how Washington has run
with the penny. It doesn't make sense.
President Trump saw the waste, and then he acted. Last November, the
Mint struck the final penny. This bill writes that decision into law so
no future administration can turn the presses back on.
The Mint projects $56 million in savings in just 1 year. Let me be
clear: Nobody is taking away pennies you already have. The penny in
your pocket, the coin sitting in your jar on the counter, that all
stays as legal tender.
I introduced this bill with Congressman Robert Garcia. It is not
radical. It is bipartisan. It is common sense.
Republicans and Democrats don't often agree on much in this town, but
I do think we agree on this: We shouldn't be wasting $85 million a year
by keeping to mint pennies.
Mr. Speaker, it is time to modernize our currency, cut the waste, and
bring a little common sense back to Washington. I urge my colleagues to
vote ``yes.''
Mr. SHERMAN. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois (Mr. Foster), the State that is the Land of Lincoln.
Mr. FOSTER. Mr. Speaker, I have to say that I agree it makes perfect
economic sense to retire the denomination of the penny and, in fact,
reemploy the dollar coin in ordinary commerce.
As a Representative of Illinois, I cannot but mention the fact that
the loss of the image of Abraham Lincoln on coins we often use is a
tragedy that we can and should avert. The way to do that is to simply
place the image of Abraham Lincoln on the newly minted dollar coin, a
win-win every way you look at it.
Mrs. McCLAIN. Mr. Speaker, for the reasons I explained earlier, I
urge my colleagues to support this bill, and I yield back the balance
of my time.
Mr. SHERMAN. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Texas (Ms. De La Cruz) that the House suspend the
rules and pass the bill, H.R. 10167.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________