The House of Representatives has voted unanimously to eliminate the 1-cent coin, moving the United States a step closer to retiring the penny after more than two centuries. Lawmakers passed the bipartisan Common Cents Act, which blocks the Treasury Department from minting new pennies—except for collector coins—and establishes new rules for rounding cash transactions.

The act was co-sponsored by Lisa McClain, a Republican from Michigan, and Robert Garcia, a Democrat from California. The bill directs that all cash transactions will be rounded to the nearest five cents, with special provisions in place to round up when cash wages are paid if the total cannot be divided by five cents.

The U.S. Mint stopped producing pennies for circulation in November 2025 after President Donald Trump’s administration ordered the halt, citing the cost to make each penny—nearly four times its face value. The Treasury Department estimates that ending penny production will save the government about $56 million annually. Pennies already in circulation will remain legal tender, and electronic transactions will not be affected by the rounding rule.

Supporters of the bill say that it brings consistency and certainty to handling cash payments, which have become challenging since the last batch of pennies was minted. Industry groups such as the Retail Industry Leaders Association and the National Restaurant Association praised the legislation, noting that it helps businesses avoid confusion and potential legal issues when exact change is unavailable. However, some groups have raised concerns about the long-term effects of rounding, with the Federal Reserve Bank of Richmond estimating that consumers could lose about $6 million each year due to the change.

An additional provision in the bill allows the Mint to produce nickels using less expensive materials. The Common Cents Act now heads to the Senate for consideration. If signed into law by President Trump, the penny will join other obsolete U.S. coins in history, while Congress will continue monitoring the impact on low-income and older Americans, as well as those without bank accounts.

Grant Smith