Katie BaileyWith the federal government no longer manufacturing new pennies for circulation, credit unions should monitor how declining penny availability could affect cash transactions and related operations. Existing pennies remain legal tender and continue to circulate. The U.S. Department of the Treasury has issued nonbinding guidance recommending that businesses continue accepting pennies while they remain available and use rounding for cash transactions when penny change is unavailable.
The Common Cents Act addresses the transition away from penny production and would establish a federal framework for rounding cash transactions to the nearest five cents. Under the proposed framework, rounding would occur based on the final amount of a cash transaction. Amounts ending in 1 or 2 cents would round down, amounts ending in 3 or 4 cents would round up, amounts ending in 6 or 7 cents would round down, and amounts ending in 8 or 9 cents would round up.
The Senate passed S. 1525, the Common Cents Act, by unanimous consent on August 7, 2026. The House subsequently passed H.R. 10167, also titled the Common Cents Act, on September 14. H.R. 10167 was received by the Senate on September 15 and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Because the legislation has not yet been enacted, the proposed rounding requirements are not currently federal requirements. Credit unions should also recognize that state laws may affect how cash rounding is implemented. The Treasury Department specifically notes that states and localities will determine how their laws address issues such as sales tax and cash rounding.
Credit unions that handle significant amounts of cash may want to begin considering how reduced penny availability could affect their operations. Areas to monitor include:
- Cash transactions and whether rounding will be necessary.
- Teller procedures and cash handling processes.
- Core and transaction processing systems.
- Member disclosures and communications.
- Cash balancing and reconciliation procedures.
- State requirements that may apply to cash rounding.
Treasury’s current guidance recommends applying rounding only to cash payments and continuing to process non-cash transactions, such as checks and electronic payments, to the exact cent. It also recommends applying any rounding practices fairly, consistently, and transparently.
Credit unions should monitor the legislation and applicable state guidance before making significant system or procedural changes. If the legislation is enacted, credit unions should review their cash handling procedures, systems, employee training, and member communications to determine whether updates are necessary.
The federal government has stopped manufacturing new pennies for circulation, but existing pennies remain legal tender. The Common Cents Act has passed both the Senate and House in different legislative vehicles, but it has not yet become law. Credit unions should monitor the legislation and applicable state requirements and consider how declining penny availability could affect cash handling, systems, procedures, and member communications.
