House Votes to Kill Penny and Prohibit Firearm Merchant Category Codes

The House of Representatives passed bills Tuesday (July 14) that formally end production of the penny, reform the bank acquisition process and prohibit merchant category codes that specifically identify firearms retailers.

The three bills came from the House Financial Services Committee, the committee said in a Wednesday (July 15) press release.

The Common Cents Act (H.R. 3074), which passed the House by a voice vote, ends production of the penny, allows for production of a more cost-effective nickel, and provides clear guidance to encourage consistent cash practices for retailers, banks and consumers, according to the release.

The bill’s sponsor, Rep. Lisa McClain (R-Mich.), said in a Tuesday press release that the bill permanently ends production of the penny for general circulation, permanently codifying President Donald Trump’s order that the Treasury Department end penny production. The bill also establishes a national framework for cash transactions in which exact change is not available, and authorizes the Treasury Department to use a lower-cost composition for the nickel, according to the release.

“If the federal government is spending nearly four cents to make a penny worth one cent, something is broken,” McClain said in the release.

The Failing Bank Acquisition Fairness Act (H.R.6556), which passed the House by a voice vote, requires that during the bank acquisition process, regulators evaluate bids fairly to promote competition, preserve access to banking services and strengthen the failed bank resolution process, according to the committee’s press release.

The bill’s sponsor, Rep. Stephen Lynch (D-Mass.), said in a Tuesday post on X that the bill prevents “sweetheart deals” that favor the largest banks and “creates a level playing field for small- and medium-sized banks while protecting depositors and businesses in impacted local communities.”

The Protecting Privacy in Purchases Act (H.R. 1181) will protect consumers’ financial privacy by prohibiting payment card networks from assigning or requiring merchant category codes that specifically identify firearms retailers, according to the committee’s press release.

The bill’s sponsor, Rep. Riley Moore (R-W.Va.), said in a Tuesday press release that the bill came in response to the International Standards Organization’s 2022 approval of the creation of a separate merchant category code for firearm and ammunition retailers.