Senate passes currency bill that moves the U.S. closer to ditching penny, change nickel recipe

A bill that would formally end penny production in the U.S. passed the Senate with unanimous consent. 

Under the Common Cents Act, pennies would still be legal tender, though retailers may not have any to give out, The Hill reported. The Federal Reserve would also have to limit "disruptions in the penny supply," under the bill passed on Friday. 

The U.S. minted its final one-cent coin for circulation last year, and the bill would also address some of the problems that arise from the end of production by allowing business to round transactions to the nearest nickel. However, some states and localities prohibit the practice, and the bill addresses the confusion. 

Since nickels cost $13.31 cents to produce in fiscal year 2025, the Common Cents Act grants the Treasury the authority to test a cheaper recipe for making nickels. 

The House passed the bill in July.