All articles tagged with #cash rounding
The U.S. Senate passed the Common Cents Act by unanimous consent on September 29, sending the bill to President Donald Trump for signature. The legislation formally ends penny production, mandates cash rounding to the nearest nickel, and authorizes cheaper zinc in nickel manufacturing. The House had approved the measure on September 14, with projected annual savings of $56 million.
The U.S. House of Representatives has unanimously passed the Common Cents Act, a bipartisan bill that permanently ends the minting of one-cent coins and establishes a national framework for rounding cash transactions to the nearest five cents. The legislation, which follows the U.S. Mint’s halt of penny production in November 2025, aims to save the Treasury approximately $56 million annually by eliminating a coin that costs three times its face value to produce. While existing pennies remain legal tender, the bill mandates that cash wages be rounded upward if not divisible by five cents. It also authorizes the Mint to produce nickels from cheaper materials and requires the Treasury to monitor the impact of these changes on vulnerable populations, including low-income and elderly consumers.
The US Senate has passed the Common Cents Act, a bipartisan bill that would allow retailers to round cash transactions to the nearest nickel. This follows the US Mint's cessation of penny production in 2025, which caused widespread shortages and operational issues for businesses. While the federal bill moves toward becoming law, many states have already enacted their own rounding rules or issued guidance to address the immediate lack of change.
The US Treasury's decision to stop minting pennies by 2026 is causing grocery stores like Kroger and Kwik Trip to adjust, with some rounding cash transactions to the nearest five cents, potentially increasing costs for consumers and raising legal and logistical questions. The move aims to save costs but may lead to changes in pricing and payment practices, especially for cash transactions, affecting consumers and businesses alike.