Dive Brief:

• The House of Representatives on Monday passed the Common Cents Act, eliminating U.S. production of the penny and giving merchants leeway to round to the nearest nickel on transactions when they don’t have exact change. It was the second time the chamber had passed such legislation.
• The bipartisan bill that passed by the House is aimed at saving the federal government money by eliminating the money-losing act of minting the penny, but it would still allow for use of the one cent coin as legal tender.
• “If the federal government is spending nearly four cents to make a penny worth one cent, something is broken,” Rep. Lisa McClain (R-MI), a sponsor of the bill, said in a Monday press release. “House Republicans are proving that common sense still has a place in government by cutting waste and protecting taxpayer dollars.”

Dive Insight:

The House bill was cosponsored by California Democratic Rep. Robert Garcia and was almost identical to a bill that the chamber passed in July, but it had to be voted on again after the Senate added an amendment when it considered the legislation in August.

The bill passed by the Senate included an amendment by Massachusetts Sen. Elizabeth Warren that requires the Treasury Department to notify Congress of any future currency discontinuation, along with a transition plan, according to two retail industry trade associations.

When the House received that revamped legislation back from the other chamber, it decided to give it a new bill number to claim its own version. Now, the legislation is expected to be voted on again by the Senate next week, according to one retail trade group, NACS, that has been following the legislation.

Given the legislation mirrors the earlier Senate version that was passed, the legislation would be expected to move to President Donald Trump for his signature soon.

Trump will likely sign the bill, given the U.S. Mint already stopped producing the penny. The final batch of pennies was struck last November, nine months after Trump directed the U.S. Treasury to stop making pennies, citing their cost inefficiency. The department estimated $56 million in savings by ending penny production. Under the bill, pennies will still be produced as collectible coins.

In the Senate, where the legislation was sponsored by Sens. Senator Cynthia M. Lummis (R-WY) and Kirsten Gillibrand (D-NY), an amendment helped win passage.

The legislation is an aid to merchants who have been increasingly frustrated by a decline in the circulation of pennies. The National Grocers Association, which represents independent supermarkets, cheered passage of the bill, saying it provides legal authority for rounding in transactions.

“This legislation gives businesses the consistency they need to handle cash transactions fairly and efficiently while minimizing disruption for consumers,” the association said in a Tuesday press release.