Senate approves bill to end penny production and test cheaper nickel composition
The Senate gave unanimous consent to a bill that stops minting pennies, allows price rounding to the nearest nickel, and lets the Treasury try a lower-cost nickel alloy.
With unanimous consent, the Senate passed the Common Cents Act, a currency reform that officially halts the manufacture of one-cent coins after the Mint produced its final penny for circulation last year. Although pennies remain legal tender, the bill permits businesses to round transactions to the nearest nickel, a practice previously restricted in some jurisdictions. It also requires the Federal Reserve to monitor any disruptions in the penny supply.
Recognizing that producing a nickel costs $13.31 cents in fiscal year 2025, the legislation grants the Treasury authority to trial a cheaper metal composition for the five-cent piece. The measure had already cleared the House in July, moving the United States closer to eliminating the penny and reducing minting expenses.
Why it matters
It could save taxpayers money and simplify cash transactions nationwide.
How the sides frame it
MODERATE AGREEMENTCenter coverage frames the bill mainly as a way to give retailers legal clarity for rounding cash transactions, while right-leaning coverage emphasizes the halt to penny production, cost savings and the Treasury’s authority to test a cheaper nickel composition.
CENTER
Center coverage presents the legislation as providing clarity and legal cover for retailers to round cash transactions after the Mint stopped producing pennies.
RIGHT
Right-leaning coverage portrays the bill as a currency reform that ends penny production, highlights the fiscal cost of minting nickels and notes the Treasury’s authority to trial a cheaper metal composition.
The right emphasises
- the Senate passed the act with unanimous consent, officially halting penny manufacture
- producing a nickel costs $13.31 cents, prompting a trial of a cheaper composition
- the Federal Reserve must monitor any disruptions in the penny supply
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