Common Cents Act
Floor Speech
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Mrs. McCLAIN. Mr. Speaker, I thank Chairman Hill for his help on this.
Mr. Speaker, I rise today in support of H.R. 3074, the Common Cents Act. This is a straightforward bill that accomplishes one commonsense goal. It stops the Federal Government from losing money on a coin that almost no one uses.
Here is the problem: Every penny we mint costs the taxpayers nearly 4 cents. Think about that. We are spending 4 cents to make 1 cent. Last year alone, that absurd math cost the American taxpayers more than $85 million. I think we can be a better steward of the taxpayers' money than that.
As a businesswoman, I can assure you that no businessowner in my district or myself would ever spend four times as much to make $1. Yet, that is exactly how Washington has managed the penny year after year. Quite frankly, that does not make sense.
The Common Cents Act fixes it. It directs the Treasury to stop minting the penny for general circulation, and quite frankly, that is it.
It does not take away a single penny that somebody already owns. Every penny in your pocket, every penny in your piggy bank, and every penny in that jar on your counter stays as legal tender if it is unused.
This is not a radical idea. President Trump called for it. It is his commonsense idea, and it should become law.
I introduced this bill with Congressman Robert Garcia, and it cleared the Committee on Financial Services with strong bipartisan support.
Republicans and Democrats don't agree on much in this town, but we do agree on this: We shouldn't be wasting $85 million a year to keep minting pennies.
Not only do we agree, but, Mr. Speaker, I include in the Record letters of support from local industry leaders who also support this commonsense piece of legislation. America's Credit Unions, Washington, DC, July 13, 2026. Re Credit Union Support for H.R. 3074, the Common Cents Act. Hon. Mike Johnson, Speaker, House of Representatives, Washington, DC. Hon. Hakeem Jeffries, House Minority Leader, House of Representatives, Washington, DC.
Dear Speaker Johnson and Leader Jeffries: On behalf of America's Credit Unions, I am writing to you to share our support for the updated bipartisan compromise language found in H.R. 3074, the Common Cents Act, and its efforts to address the phaseout of penny production and the emerging challenges surrounding penny circulation. America's Credit Unions is the voice of consumers' best option for financial services: credit unions. We advocate for policies that allow the industry to effectively meet the needs of their over 146 million members nationwide.
With penny production ending, inventories at Federal Reserve distribution sites are shrinking without a national rounding standard, creating uncertainty and operational challenges for credit unions and other financial institutions. H.R. 3074 also addresses the practical challenges associated with the nation's coin supply by establishing a national framework for cash transaction rounding. The bill permits retailers to round transactions ending in 1, 2, 6, or 7 cents down, and those ending in 3, 4, 8, or 9 cents up, to the nearest five cents. Employers who choose to round cash wages must round up, though nothing requires them to round at all. Electronic payment methods (cards, checks, EFFs, etc.) are excluded, ensuring that electronic payments continue to be charged the exact purchase amount. America's Credit Unions views this as a practical solution that can reduce disruptions caused by coin shortages, lower cash-handling costs for businesses, and simplify transactions for consumers without eliminating the use of cash.
The legislation also provides clarity regarding the treatment of federal, state, and Tribal law. H.R. 3074 is designed to establish a consistent federal standard for cash rounding while recognizing the authority of states and Tribal governments in areas not expressly addressed by the Act. Credit unions operate across multiple states and need clear direction on what practices are permissible during the interim period before Congress establishes a nationwide standard. This approach helps to promote uniformity for financial institutions and merchants operating across multiple jurisdictions, while respecting existing legal frameworks and minimizing uncertainty regarding compliance and consumer protections.
Lastly, the Common Cents Act requires the Federal Reserve Board to develop a strategic plan and periodic reporting on coin terminal operations and the stability of the nation's coin distribution system. These provisions will help to improve coordination among the entities responsible for coin production, processing, transportation, and distribution, helping policymakers identify vulnerabilities before they result in widespread shortages.
America's Credit Unions recognizes that maintaining a reliable coin supply is an important component of the broader payments ecosystem, particularly for credit union members and small businesses that continue to rely on cash transactions. We would also encourage the Federal Reserve Board to work with the National Credit Union Administration and other federal banking regulatory agencies to clarify acceptable interim rounding practices for cash transactions, whether rounding should occur at the total bill rather than at the item level, whether sales tax should be calculated before or after rounding, and the types of receipt disclosures that are recommended, including the use of a separate rounding adjustment line. By requiring greater oversight and planning, the legislation seeks to strengthen the resilience of the nation's coin infrastructure and reduce the likelihood of future disruptions.
America's Credit Unions believes that H.R. 3074, the Common Cents Act, reflects important principles of consumer choice, market competition, and innovation. Providing merchants and financial institutions with additional routing options can encourage payment networks to enhance security, efficiency, and customer service while supporting a strong and reliable electronic payments system. We thank House Financial Services Committee Chairman French Hill, Ranking Member Maxine Waters, and Representatives Lisa McClain and Robert Garcia for their leadership on this issue. On behalf of our nation's credit unions and their more than 146 million credit union members, we urge you to support this legislation when it comes before the House this week.
Should you have any questions or require any additional information, please feel free to contact me or America's Credit Unions' Senior Vice President of Advocacy Greg Mesack. Sincerely, Kathleen Coulombe, Chief Advocacy Officer. ____ United Steelworkers, July 10, 2026. Re United Steelworkers supports passage of H.R. 3074, the Common Cents Act. House of Representatives, Washington, DC.
Dear Representative: On behalf of the 850,000 members of the United Steelworkers union (USW), I write to express our support for the Common Cents Act, H.R. 3074, as amended. This legislation is expected to be considered under suspension of the rules next week. This bill would authorize the use of zinc as an alternative metal in the production of nickels. The Common Cents Act would help protect American jobs, support domestic manufacturing, and generate savings for the American taxpayer.
USW represents workers across a wide range of sectors, including more than 150 highly skilled employees at Artazn in Greeneville, Tennessee. These workers produce zinc coin blanks that were historically used for the penny. When H.R. 3074 was first introduced, it called for eliminating the penny altogether--framed as a cost-saving measure, but one that would have directly jeopardized these jobs. The fiscal case for eliminating the penny also failed to acknowledge the far higher cost of producing a nickel, which is currently about 14 cents per coin, undermining the rationale behind the proposal.
Fortunately, Representative McClain has offered an amendment to her original legislation, which creates a new opportunity for these workers to continue supplying zinc blanks to the U.S. Mint--now for the use of nickels. The proposed zinc-based alternative costs less than five cents to produce, has been actively tested by the U.S. Mint, and has demonstrated strong performance in terms of durability, functionality, and cost-effectiveness.
Our members are already feeling the effects of ongoing workforce reductions and hiring freezes driven by attrition. These challenges are placing added strain on workers, their families, and the communities that depend on good-paying manufacturing jobs. We cannot afford further delays. Immediate action is needed to help stabilize employment, support domestic production, and preserve critical manufacturing capacity here in the United States.
USW appreciates the work that Chairman Hill and Ranking Member Waters have done to move this legislation forward. USW strongly supports H.R. 3074, as amended and urges the House to suspend the rules and pass the bill. This legislation now provides a practical path forward that preserves jobs, supports American industry, and delivers savings to taxpayers. We respectfully urge you to support this amended version of the Common Cents Act, H.R. 3074. Sincerely, Roxanne D. Brown,
International President. ____ American Bankers Association, July 13, 2026. Hon. Mike Johnson, Speaker, House of Representatives, Washington, DC. Hon. Hakeem Jeffries, House Minority Leader, House of Representatives, Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: On behalf of the American Bankers Association (ABA), I am writing to express our strong support for H.R. 3074, the Common Cents Act, led by Reps. Lisa McClain (R-MI) and Robert Garcia (D-CA).
This important commonsense legislation would provide a clear and practical framework for cash rounding when exact change cannot be provided, while clarifying that checks, electronic fund transfers, credit cards, gift cards, money orders, and similar non-cash payment methods are not subject to rounding. This approach would help consumers, businesses, and financial institutions adapt with minimal disruption. Having all parties operate under one set of rules would benefit the entire marketplace.
By directing the Secretary of the Treasury to cease production of the one-cent coin while preserving the legal tender status of existing pennies, this bill would help modernize the nation's coinage system and reduce unnecessary costs associated with the production, handling, and distribution of pennies. The required strategic plan and report from the Board of Governors of the Federal Reserve about supporting penny orders and deposits at their facilities would benefit financial institutions and consumers alike.
Thank you for your leadership on this issue and for advancing a thoughtful reform that promotes efficiency while protecting consumers and preserving stability in the cash distribution system. ABA looks forward to working with you and your colleagues as H.R. 3074 moves through Congress and strongly urges its timely passage by the House, followed by prompt consideration and passage by the Senate. Sincerely, Naomi Camper, Chief Policy Officer. ____ Artazn
Dear Representatives McClain and Garcia: On behalf of Artazn, the nation's leading manufacturer of coinage materials and a supplier to more than 30 mints around the world, including the U.S. Mint, I write to commend your leadership in sponsoring H.R. 3074, the Common Cents Act.
This bipartisan legislation takes a practical, fiscally responsible approach to modernizing U.S. coinage by giving the Treasury Department the option to order production of a lower cost, zinc-based nickel. Artazn has spent several years working with a wide range of industry stakeholders to develop a zincbased nickel blank that can significantly reduce taxpayer losses on this important coin.
This reform is both timely and necessary. According to the U.S. Mint's most recent Annual Report, it now costs approximately 13.3 cents to manufacture each 5-cent coin. With penny production having ended, nickel production is likely to increase to meet transactional demand, making it even more important to address the nickel's unsustainable production cost. By authorizing the Mint to produce a zinc- based nickel, H.R. 3074 provides a common-sense solution that has the potential to eliminate the tens of millions of dollars in losses from nickel production that the Treasury Department incurs every year.
We applaud House Financial Services Committee Chairman French Hill and Ranking Member Maxine Waters for their leadership in working together on a bipartisan basis to incorporate amendments to the bill following the Committee's markup in July 2025. As evidenced by the broad and diverse array of organizations supporting H.R. 3074, including the United Steelworkers with whom Artazn works closely, these amendments were thoughtfully constructed to address the concerns of all stakeholders.
Again, we thank you for your leadership on this vitally important issue. Artazn respectfully urges the Congress to pass H.R. 3074, and we look forward to continuing to work with all interested parties committed to modernizing the Nation's circulating coinage. Sincerely, Mike Schubert, President. ____ July 13, 2026. Re Main Street Businesses Urge Passage of the Common Cents Act. Hon. Mike Johnson, Speaker, House of Representatives, Washington, DC. Hon. Hakeem Jeffries, Minority Leader, House of Representatives, Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: The undersigned associations represent Main Street businesses that serve and employ millions of Americans across the nation every day. These businesses--large and small--must be able to continue serving their communities in ways that are fair to everyone and avoid unintended operational hurdles that are being caused by the halt in U.S. penny production. We write to urge you and your colleagues to quickly pass the bipartisan Common Cents Act (H.R. 3074) as amended when it comes to a vote on the House floor this week.
We deeply appreciate the hard work and consensus-building efforts to reach this bipartisan agreement, and applaud Representatives Lisa McClain (R-MI) and Robert Garcia (D-CA) as bill sponsors and House Financial Services Committee Chairman French Hill (R-AR) and Ranking Member Maxine Waters (D-CA) and their staffs for their leadership on this critical issue.
Since the U.S. Mint produced its last pennies over a year ago, businesses across the country have faced cascading impacts from the lack of pennies in circulation, operating under constant uncertainty about how handle cash transactions when exact change is unavailable. All the potential options today create the risk of potential legal challenges and significant financial losses.
As of this month, more than 15 states have enacted laws governing cash rounding. This is confusing to businesses and their customers. We need a clear standard from Congress allowing businesses to round cash transaction amounts and a safe harbor from liability in doing so fairly. The Common Cents Act as amended provides the exact solution Main Street businesses and their customers need.
Businesses and their customers across the country deserve certainty and consistency in their everyday cash transactions and need this legislation to pass Congress as quickly as possible. As such, we urge you and your colleagues to vote YES on the Common Cents Act to ensure that we can continue to serve our customers without interruption. Sincerely,
American Beverage Licensees,
American Booksellers Association,
American Hotel & Lodging Association,
Coalition of Franchisee Associations,
Energy Marketers of America,
FMI--The Food Industry Association,
International Franchise Association,
Merchant Advisory Group,
National Association of Convenience Stores,
National Grocers Association,
National Restaurant Association,
National Retail Federation,
NATSO, Representing America's Travel Centers and Truck Stops,
OHI--Outdoor Hospitality Industry,
Retail Industry Leaders Association,
SIGMA: America's Leading Fuel Marketers. ____ Kroger , July 13, 2026. Hon. Lisa McClain, Washington, DC. Hon. French Hill, Chairman, House Financial Services Committee, Washington, DC. Hon. Robert Garcia, Washington, DC. Hon. Maxine Waters, Ranking Member, House Financial Services Committee, Washington, DC.
Dear Rep. McClain, Rep. Garcia, Chairman Hill and Ranking Member Waters: Kroger writes to thank Reps. McClain and Garcia for leading the efforts to introduce H.R. 3074, the Common Cents Act, and for the efforts of Chairman Hill and Ranking Member Waters to advance this bipartisan legislation. Kroger urges your colleagues to vote YES on this important bill which would address the ceased minting of the penny by establishing a federal law regarding rounding of cash transactions when pennies are unavailable to make exact change. H.R. 3074 provides the legal pathway and protection for rounding on cash transactions when exact change is not available--providing parity across the country for Kroger customers and grocers alike.
The final minting of the 1-cent coin by the U.S. Mint at the directive of the U.S. Treasury Department was in June 2025, and the final inventory of these pennies was shipped to Federal Reserve regional distribution vaults in August 2025. Since the ceased minting of the penny, Kroger's nearly 2,800 stores across the country have experienced an inability to provide exact change to cash-paying customers and have had no choice but to round to the nearest nickel when exact change is unavailable. In the absence of a federal law specifying the parameters of rounding cash transactions to the nearest nickel, there has been a lot of confusion for our customers, and Kroger and other main street grocers have been exposed to possible litigation and potential violation of federal, state, and local laws. Without enactment of a federal law to address penny rounding, many states have enacted laws or guidance which has created a patchwork of differing requirements across the country--an untenable situation for our customers and our stores.
The federal rounding law established under H.R. 3074 provides clarity for Kroger customers and addresses our concerns, as one of the nation's largest SNAP retailers, about violating the SNAP equal treatment provisions since the ceased minting of the penny. Without exact change, our stores have no choice but to round to the nearest nickel for cash- paying customers, meaning these customers would be paying a slightly different total than SNAP customers who use a SNAP EBT card for purchases. If Kroger, as a SNAP retailer without exact change, is forced into the position of rounding cash transactions, it would be in violation of the SNAP equal treatment provisions which prohibit both negative treatment (discriminatory practices) and preferential treatment (incentive practices). H.R. 3074 addresses the implications from the ceased minting of the penny on this SNAP policy and would allow Kroger to continue serving all our customers consistently and lawfully, regardless of payment method.
The Common Cents Act, H.R. 3074:
Specifies the ability of businesses and financial institutions, but does not mandate, to round down (amount ends with 1, 2, 6, 7) and round up (amount ends with 3, 4, 8, 9) to the nearest 5 cents for cash transactions when pennies are not available to make exact change, enables businesses to choose to round in favor of a customer.
Provides protection and clarity that businesses will not be in violation of federal, state, tribal, or local laws pertaining to the ceased minting of the penny if rounding, stipulated under the bill, is utilized for cash transactions; this includes providing grocers with protection from potential violations of the SNAP equal treatment provisions when rounding for non-SNAP cash transactions.
Indicates that rounding only applies to cash transactions and does not apply rounding to any demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other like instrument or method.
Stipulates that for employer-to-employee payments in cash, the amount must be rounded up to the nearest 5 cents but nothing in this federal bill requires employers to pay employees in cash payments.
Authorizes the ceased minting of the penny and modifies the metal composition of the 5-cent coin.
We strongly support H.R. 3074 and urge a YES vote on passage. The Common Cents Act provides the long-needed clarity for grocery customers and retailers when exact change is not available for cash transactions. Thank you for your leadership, Evan Sarris, Deputy Director, Government Relations. ____ National Armored Car Association, July 13, 2026. Hon. Lisa McClain, House of Representatives Washington, DC. Hon. Robert Garcia, House of Representatives Washington, DC.
Dear Representatives McClain and Garcia: On behalf of the National Armored Car Association (NACA), I write to express our support for H.R. 3074, the Common Cents Act, which directs the Treasury to cease minting the penny and establishes a framework for rounding cash transactions to the nearest five cents. We appreciate your leadership on this legislation as it comes to the House floor this week.
Formed in 1929, NACA is a business association that brings together the three major companies of the armored car industry--Brink's, Garda, and Loomis--with a focus on protecting and promoting the common interests of the industry. NACA's members provide secure transportation and cash management services for the Federal Reserve, financial institutions, state and local governments, and private businesses and individuals across the United States and internationally.
NACA members operate the commercial coin terminals that, under contract with and on behalf of the Federal Reserve Banks, hold Reserve Bank coin inventories and receive deposits from and fulfill coin orders for depository institutions nationwide. We support the bill's direction to the Federal Reserve to develop and report on a strategic plan for coin terminal operations as the transition away from new penny production continues. We likewise support the provision permitting Treasury to update the composition of the 5-cent coin, and we appreciate that the bill preserves the longstanding principle--reflected in prior GAO and U.S. Mint analyses--that any such change be tested to minimize impact on coin-handling equipment; our members would welcome the opportunity to serve as a resource to Treasury in that testing.
We appreciate the work of Chairman Hill and Ranking Member Waters, and the Committee on Financial Services, in bringing this legislation to the floor on a bipartisan basis. Thank you for your consideration. We urge members of the House to support H.R. 3074. Sincerely, Basil Thomson, Executive Director, National Armored Car Association. ____ National Restaurant Association, July 13, 2026. Hon. Mike Johnson, Speaker, House of Representatives, Washington, DC. Hon. Hakeem Jeffries, Minority Leader, House of Representatives, Washington, DC.
Dear Speaker Johnson and Minority Leader Jeffries: On behalf of the restaurant industry, we urge Congress to pass the Common Cents Act (H.R. 3074) to establish national rounding guidance and a safe harbor for restaurants that need to round when exact change cannot be provided. Restaurant operators transact more than $1 trillion in sales annually and more than 1 in 4 of those purchases are paid for in cash. When operators can't provide exact change, it creates friction at checkout, frustrating customers. In a highly competitive industry, like restaurants, any change to the hospitality our customers expect could mean a lost return sale for an operator.
Founded in 1919, the National Restaurant Association represents the U.S. restaurant and foodservice industry, which includes more than 1 million establishments and employs 15.7 million Americans. In 2025, the industry generated $1.4 trillion in sales and remains one of the nation's largest employers--accounting for one in ten U.S. jobs. Nearly 90 percent of restaurant establishments are small businesses with fewer than 50 employees, underscoring the industry's vital role in supporting local economies nationwide.
The Association appreciates the bipartisan dedication of Congresswoman McClain, Congressman Garcia, Chairman Hill and Ranking Member Waters to craft this bipartisan solution.
We hope you can support the Common Cents Act so that restaurant operators across the country can continue to provide the highest level of hospitality to our cash-paying customers. Sincerely, Dan Roehl, Vice President, Federal Government Relations. ____ The Food Industry Association, July 10, 2026. Hon. Lisa McClain (R-MI), House of Representatives, Washington, DC. Hon. French Hill (R-AR), Chairman, House Financial Services Committee, Washington, DC. Hon. Robert Garcia (D-CA), House of Representatives, Washington, DC. Hon. Maxine Waters (D-CA), Ranking Member, House Financial Services Committee, Washington, DC.
Dear Representatives McClain and Garcia, Chairman Hill, and Ranking Member Waters: On behalf of FMI--The Food Industry Association, I write with our endorsement of the revised Common Cents Act, H.R. 3074, to establish a federal law pertaining to rounding of cash transactions when pennies are unavailable to make exact change. Enactment of H.R. 3074 is of the utmost importance for grocery customers and food retailers alike.
FMI is very grateful for the leadership of Representatives McClain and Garcia in sponsoring H.R. 3074, and Chairman Hill and Ranking Member Waters for their thoughtful deliberations in reaching bipartisan agreement to ensure that clarity on rounding of cash transactions is provided for customers, employees, and grocery stores and other main street businesses around the country.
FMI's retail members, which range in size from independent operators to regional and large national and international businesses and brands, operate 45,000 grocery stores and 12,000 supermarket pharmacies. The food industry ultimately touches the lives of more than 100 million U.S. households per week. Providing grocery customers with the ability to use cash for purchases is an important service and is the law in several states and localities. Not only do grocers accept cash at registers, self-checkout stations, and vending machines, but they also offer check-cashing services to customers and employees.
Since the ceased minting of the penny, grocery stores across the country have experienced an inability to provide exact change to cash-paying customers and have had no choice but to round to the nearest nickel when exact change is unavailable. In the absence of a federal law specifying the parameters of rounding cash transactions to the nearest nickel, there has been a lot of confusion for customers, and grocers have been exposed to possible litigation and potential violation of federal, state, and local laws. Further, without enactment of a federal law, many states have enacted laws or guidance on rounding cash transactions which has created a patchwork of differing' requirements across the country--an untenable situation for customers and grocers.
H.R. 3074 addresses operations and legal concerns that grocers have had as a result of the ceased minting of the penny and diminished ability to obtain pennies to make exact change for cash transactions. The legislation: specifies, but does not mandate, the ability of businesses to round down and up to the nearest nickel for cash transactions when pennies are not available to make exact change, and enables businesses to choose to round in favor of a customer; provides protection so that businesses will not be in violation of federal, state, tribal, or local laws pertaining to the ceased minting of the penny if rounding under H.R. 3074 is utilized for cash transactions; and stipulates that for employer-to-employee payments in cash, the amount must be rounded up to the nearest nickel.
In addition, H.R. 3074 provides clarity for grocery customers and addresses SNAP retailers' concerns about violating the SNAP equal treatment provisions since the ceased minting of the penny. Without exact change, stores have no choice but to round to the nearest nickel for cash- paying customers, meaning these customers would be paying a slightly different total than SNAP customers who use a SNAP EBT card for purchases. If a SNAP retailer without exact change is forced into the position of rounding cash transactions, they would be in violation of the SNAP equal treatment provisions which prohibit both negative treatment (discriminatory practices) and preferential treatment (incentive practices). H.R. 3074 addresses the implications from the ceased minting of the penny on this SNAP policy.
Again, thank you for your leadership in advancing the Common Cents Act, H.R. 3074. Enactment of H.R. 3074 is urgently needed for grocery customers and food retailers to address confusions and the myriad of operations and legal concerns caused by the ceased minting of the penny. Sincerely, Christine Pollack, Vice President, Government Relations.
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Mrs. McCLAIN. Mr. Speaker, it is time to modernize our currency policy and bring some commonsense back to Washington. I urge my colleagues on both sides of the aisle to support this legislation and vote ``yes.''
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