Updated
Updated · The Independent · Aug 17
Senate Passes Bill Allowing 5-Cent Cash Rounding After Penny End
Updated
Updated · The Independent · Aug 17

Senate Passes Bill Allowing 5-Cent Cash Rounding After Penny End

3 articles · Updated · The Independent · Aug 17

Summary

  • The Senate approved the Common Cents Act by unanimous consent on Aug. 7, setting federal rules for cash purchases after the U.S. stopped minting pennies in November 2025.
  • The bill lets retailers round cash totals to the nearest 5 cents when exact change is unavailable, while card and electronic payments would still be charged to the exact cent.
  • Businesses have pushed for the change because penny production cost 3.69 cents per coin and generated $83 million in annual losses, while retailers faced legal uncertainty under varying state laws.
  • The measure still must clear both chambers in identical form before reaching President Donald Trump, since the House and Senate passed different versions.
  • It also opens the door to testing cheaper nickel designs; each nickel now costs 13.8 cents to make, though a separate bill to halt nickel production remains stalled.

Insights

With penny production ending, could the rising costs of metals soon force the U.S. to eliminate the nickel as well?
How will the new cash-rounding rules impact consumers who primarily rely on physical currency for their daily purchases?
How will the psychological pricing strategy of items ending in .99 shift now that cash transactions face mandatory rounding?