The Penny Dies: New Act Mandates Cash Rounding to the Nearest 5 Cents Starting Next Year

The Common Cents Act is straightforward: it ends the mass production of the one-cent coin—the penny—and mandates a new system for cash transactions. Starting one year after the law passes, the U.S. Treasury stops minting new pennies for circulation (SEC. 2). While they can still produce special collector editions, those sales must cover all production costs, meaning no more government subsidy for novelty coins. Critically, every penny you already have remains legal tender, so don’t toss your coin jar yet.

The End of Exact Change

The biggest change for everyday life is Section 3: Cash Transaction Rounding. This rule kicks in one year after enactment and only applies when you pay with physical cash. If you use a credit card, check, or digital payment, nothing changes—you pay the exact amount. But if you hand over bills and coins, the total must be rounded to the nearest five cents.

Here’s the breakdown: If your total ends in 1, 2, 6, or 7 cents (say, $15.07), it rounds down to the nearest nickel ($15.05). If it ends in 3, 4, 8, or 9 cents (like $15.08), it rounds up to the nearest dime ($15.10). The only exception is if your total is just $0.01 or $0.02, which always rounds up to $0.05.

What This Means for Your Wallet and Your Time

For the Treasury, this is a clear win. For years, it has cost more than one cent to make a penny, so halting production stops that financial bleed (SEC. 2). For businesses, especially those dealing heavily in cash like convenience stores or food trucks, this simplifies life. No more fumbling for those last few copper coins; accounting gets cleaner, and lines move faster.

For the average person, the impact is small but constant. If you’re paying cash, you’re now subject to this mandatory rounding. While the rules are mathematically symmetrical—you round down just as often as you round up—it means every cash purchase is slightly adjusted. Think of buying lunch for $12.43; you’ll now pay $12.45. If you buy a coffee for $3.17, you’ll pay $3.15. Over time, these tiny adjustments should balance out, but for those who rely heavily on cash, it introduces a permanent, mandatory adjustment to every transaction. If you're someone whose purchasing pattern frequently lands you on the 3, 4, 8, or 9 cent totals, you will be consistently paying that extra penny or two (SEC. 3).

This Act is less about eliminating the penny and more about eliminating the need for the penny in daily commerce. It streamlines cash handling and saves the government money, but it also enforces a new, slightly less precise reality for consumers who choose to pay the old-fashioned way.