Analyst Brief September 14, 2026

H.R. 10167 — Common Cents Act

Current Status

Introduced

Executive Summary

The 'Common Cents Act' (H.R. 10167) mandates the cessation of penny (one-cent coin) production for general circulation and establishes a national framework for rounding cash transactions to the nearest five cents. Driven by the rising costs of minting pennies—which currently exceed their face value—the bill aims to modernize U.S. currency circulation, reduce negative seigniorage, and alleviate the logistical burdens of coin handling on businesses. It includes specific rounding rules, exempts non-cash transactions, and requires the Federal Reserve to report on the transition's effect on unbanked and low-income communities.

Bill Data

Primary Sponsor

Mrs. McClain

Bill Number

H.R. 10167

Session

119th

Co-Sponsors

Mr. Garcia of California
View on Congress.gov ↗

Arguments For

  • Fiscal Responsibility: Eliminates the negative seigniorage of the penny, saving taxpayers money since pennies currently cost more to mint than their face value.
  • Economic Efficiency: Speeds up cash transactions at the register and reduces the logistical burden and costs on businesses and banks associated with transporting and handling low-value coins.

Likely Supporters

National Association of Convenience StoresRetail Industry Leaders AssociationFiscal Conservative Advocacy Groups

Arguments Against

  • The 'Rounding Tax' Argument: Opponents will argue that rounding up disproportionately harms low-income and unbanked consumers who rely heavily on cash for daily purchases.
  • Implementation Friction: Retailers will face short-term costs and operational headaches to update point-of-sale systems and train staff on the new rounding rules.
  • Zinc Industry Pushback: The zinc lobby (which supplies the metal for current pennies) will aggressively oppose the loss of a major government contract.

Likely Opponents

Americans for Common Cents (Zinc Lobby)Poverty and Consumer Advocacy Groups

📋 Key Provisions

  • Ceases the production of one-cent coins for general circulation, though numismatic production for collectors may continue.
  • Alters the composition of the 5-cent coin to an inner layer of zinc and an outer layer of nickel to reduce production costs.
  • Establishes a mandatory cash transaction rounding system to the nearest 5 cents (1, 2, 6, 7 round down; 3, 4, 8, 9 round up).
  • Exempts non-cash transactions (e.g., credit cards, checks, electronic funds) from rounding requirements.
  • Preempts federal, state, and tribal labor laws to ensure that rounding cash payments to employees does not constitute a minimum wage or overtime violation.
  • Requires the Federal Reserve to submit a strategic plan addressing coin distribution stability and the impact of penny discontinuation on unbanked, underbanked, and low-income consumers.
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Claim Analysis Page 3, Line 22

Mandates the Treasury to stop producing pennies for general circulation.

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"Secretary shall cease production"

Claim Analysis Page 4, Line 16

Specifies that cash transactions ending in 1, 2, 6, or 7 cents will be rounded down.

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"amount ends with 1 cent, 2 cents, 6 cents, or 7"

Claim Analysis Page 6, Line 8

Exempts electronic payments, checks, and credit cards from the rounding rules.

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"demand or negotiable instrument, electronic fund"

Claim Analysis Page 9, Line 6

Requires a report on how the change impacts vulnerable and unbanked populations.

Verify Text

"older consumers, debanked, unbanked, and"