The Senate passed the Common Cents Act on August 7. (S.1525), directs the U.S. Treasury to stop minting the penny and establishes a federal standard for rounding cash transactions to the nearest 5 cents. Electronic payments are excluded from the rounding rules.
Under the proposed legislation addressing the penny phase-out:
- Rounding Down: Cash totals ending in $1, $2, $6, or 7 cents round down to the nearest nickel.
- Rounding Up: Cash totals ending in $3, $4, $8, or 9 cents round up to the nearest nickel.
- Exclusions: Digital, credit card, and debit transactions process at exact values without any rounding.
- Legal Tender: Existing pennies already in circulation remain legal tender and usable, though production has ceased.
The Department of Treasury has already issued guidance on the discontinuation of the penny but said that enabling and clarifying legislation was still needed.
