First the penny, now the nickel: Congress moves closer to making big changes with the money in your pocket

Key Points:

• The U.S. Senate passed the Common Cents Act, which would end penny production after November 2025 and allow retailers to round cash transactions to the nearest five cents, though the bill still needs to be reconciled with the House version before reaching President Trump.
• The legislation aims to provide clear guidelines for businesses on handling cash transactions without pennies, addressing operational challenges and legal uncertainties caused by the penny's discontinuation.
• The penny costs more to produce (3.69 cents) than its face value, leading to an $83 million annual loss, while the nickel also costs more than its value (13.8 cents), prompting discussions about its future.
• The Treasury would be authorized to test new nickel designs to reduce production costs without disrupting coin-operated machines, though no changes to the nickel have been made yet.
• Business groups like the National Grocers Association and the National Restaurant Association support the bill, citing the need for consistency and clarity in cash transactions as pennies are phased out.