Penny's gone, but your cash transactions just got cheaper—for stores
H.R. 3074 — Common Cents Act · Filed by Lisa McClain (R-MI) · 1 cosponsor · Introduced Apr 29, 2025 · Passed chamber
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What it does
This bill stops the U.S. Mint from making pennies and allows cash transactions to be rounded to the nearest nickel (up or down depending on the final cent amount). Existing pennies remain legal tender. The bill shields businesses and financial institutions from lawsuits or regulatory penalties for rounding cash payments, and requires the Federal Reserve to report on how penny supply disruptions and rounding practices affect low-income and unbanked communities.
Why we flagged it
The bill's core function is to eliminate penny production and establish a legal framework for rounding cash transactions to the nearest nickel. While framed as a cost-saving measure, it is fundamentally a monetary policy and consumer transaction mechanism that shifts small costs to cash-paying consumers.
What the text implies
- Rounding rules systematically favor businesses over consumers: consumers round down on 1–2 and 6–7 cent endings, but round up on 3–4 and 8–9 cent endings, creating a net loss over time for cash payers.
- The liability shield in Section 4 prevents consumers from suing businesses for rounding violations, eliminating a private enforcement mechanism for compliance.
The full analysis lists 5 implications of this text.
Who stands to gain
Retail and food service businesses (reduced cash handling costs); Financial institutions and coin terminal operators (reduced penny processing); Vending machine and point-of-sale equipment manufacturers (potential equipment upgrades)