The House Financial Services Committee voted 35-13 to advance a modified version of H.R. 3074 that removes all cash rounding provisions, focusing solely on penny elimination and optional nickel composition changes. Eight Democrats filed minority views citing concerns about implementation guidance and impacts on vulnerable populations, while the bill now awaits House floor consideration.
WASHINGTON - The Common Cents Act cleared a significant hurdle on July 23, 2025, when the House Financial Services Committee voted 35-13 to advance a substantially modified version of H.R. 3074 to the full House floor, according to House Report 119-235 filed September 4. In a notable strategic shift, the committee adopted an amendment from sponsor Rep. Lisa McClain (R-MI) that removed all cash transaction rounding provisions from the original legislation, simplifying the bill to focus solely on penny elimination and potential nickel composition changes.
Key Changes from Original Bill
The committee's decision to strip out the rounding rules—which would have mandated specific protocols for rounding cash transactions to the nearest nickel—represents a calculated move to improve the bill's chances of passage. The approved version now only directs the Treasury to cease penny production for general circulation while preserving numismatic penny production and maintaining existing pennies as legal tender indefinitely. Additionally, it authorizes but does not require the Treasury Secretary to adopt a potentially cost-saving zinc-based composition for nickels, which currently cost 13.78 cents each to produce.
Democratic Opposition and Failed Amendment
During the markup session, Ranking Member Maxine Waters (D-CA) offered an amendment that would have established a three-year study period and created a task force to evaluate impacts on low-income communities, elderly consumers, and unbanked populations before implementing penny elimination. The amendment failed on a 22-25 vote, largely along party lines. Waters, joined by seven other Democratic committee members in formal minority views, criticized the bill's lack of implementation guidance and warned of potential disruptions to small businesses, particularly those in the vending industry.
Executive Action Already Underway
The committee action comes as the Treasury Department has already begun the phase-out process, having placed its final order for penny blanks in May 2025 with production expected to end by early 2026. This executive action, initiated following President Trump's February directive, has raised constitutional concerns among Democrats who argue Congress has sole authority over coinage. The timing creates additional pressure for legislative action to provide legal framework for changes already underway.
Path Forward
With committee approval secured, the legislation now awaits scheduling by House leadership for floor consideration, where passage appears likely given Republican control of the chamber. However, the bill's prospects in the Senate remain uncertain, particularly given the formal opposition from the National Automatic Merchandising Association and National Federation of the Blind, along with Democratic concerns about the estimated $6 million annual 'rounding tax' on cash-using consumers and the absence of transition support for affected businesses.