2026 Common Cents Act

The nickel’s composition comes under scrutiny with updates to the Common Cents Act. On August 7, the Senate unanimously passed the bill, which officially calls for the end of circulation cent production in what The Hill calls “the drawn-out death of the penny.” First proposed in early 2025, the now-polished legislation clarifies rounding options for cash transactions and allows for composition experiments for the costly 5-cent coin.

Pennies & Rounding

The 1-cent piece remains legal tender indefinitely, although many businesses are running short on cents, despite the 300 billion pieces estimated to be in circulation (or hoarded in jumbled jars on dusty dressers). Under the Common Cents Act, businesses nationwide that are out of cents would have the option to round cash transactions to the nearest nickel, or use the rounding method in which purchases ending in 3, 4, 8, or 9 cents are rounded up, while purchases ending in 1, 2, 6, and 7 are rounded down. (Some states currently prohibit rounding practices.) Employers would also have the authority to round up cash payments for employees. 

In a promise to monitor the ever-shifting cent situation, the legislation states that 90 days after it’s enacted, the Federal Reserve will release a public report “that outlines a strategic plan for the acceptance of penny orders and deposits at commercial coin terminals providing services under agreements with the Federal Reserve banks nationwide,” with subsequent reports to follow in 18 months, then 30 months.

The end of circulating cent production appears to have made a larger impact on news outlets than on the numismatic marketplace. “Other than the popularity of people wanting to acquire a roll of 2025 cents, I have not seen any impact on the penny collector market at all,” says Charmy Harker, better known as The Penny Lady. “There are still billions of Lincoln cents in circulation, as well as those being held in jars, cans, bottles, and bags by people who have ‘collected’ them or inherited them over the years. So, they are not going away for a very long time. As a matter of fact, when Canada ceased producing their cents, no one really even noticed.”

Nickels

The U.S. Mint spent 13.31 cents on each 5-cent coin it produced in Fiscal Year 2025. Last year marked 20 consecutive years that nickel production costs remained above the coin’s face value. Nickels, which are made of an alloy of 25-percent nickel and 75-percent copper, may soon contain “an inner layer of zinc and an outer layer of nickel.” The Common Cents Act would give the Treasury the power to test the cheaper alternative. To be considered for adoption, test coins must show that they cut costs and are accepted by coin-operated machines. Zinc, which is present in the now-defunct cent and the $1 coin, was nearly $7,000 cheaper per metric ton than copper last year, according to the U.S. Mint. 

Meanwhile, a separate bill to kill the nickel remains in committee in the House.

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