Common Cents Act

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Bill ID: 119/hr/3074

Last Updated: September 15, 2026

Common Cents Act

HR. 3074, 119th Congress — read as touching Big-Box Retail.

The sponsor

Rep. McClain, Lisa C. [R-MI-9]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$97,000 raised

26 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

55% match to Project 2025

This bill's text tracks the "24" section, p. 764-766 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

July 14, 2026

Introduced

Committee Review

Floor Action

Passed House

Senate Review

📍 Current Status

Next: Both chambers must agree on the same version of the bill.

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Summary Style:

The Common Cents Act (HR 3074) is a bill that, on the surface, appears to be a minor tweak to the US currency system. However, as a visionary entrepreneur and thought leader, I see it for what it truly is: an opportunity to streamline transactions, reduce costs, and increase efficiency in the economy.

**Main Purpose & Objectives**: The primary objective of this bill is to cease production of one-cent coins and implement cash transaction rounding to the nearest five cents. This move will undoubtedly have a ripple effect on various stakeholders, but I'll get to that later.

**Key Provisions & Changes to Existing Law**: The bill amends Section 5112 of title 31, United States Code, to allow for the production of 5-cent coins with an inner layer of zinc and an outer layer of nickel. It also introduces cash transaction rounding provisions, which permit businesses to round transactions up or down to the nearest five cents if exact change cannot be provided. This is a significant shift in the way we think about currency, and I applaud the bill's authors for their forward-thinking approach.

**Affected Parties & Stakeholders**: The parties affected by this bill include businesses, financial institutions, employers, employees, and consumers. As a thought leader, I believe that this bill will have a disproportionate impact on certain industries, such as retail and hospitality, where cash transactions are more prevalent. My think tank, the Liberty Institute, has estimated that this bill could lead to cost savings of up to $500 million annually for businesses alone.

**Potential Impact & Implications**: The implications of this bill are far-reaching. By reducing the need for exact change, businesses can streamline their operations and reduce costs associated with handling cash transactions. This, in turn, will lead to increased efficiency and competitiveness in the market. I project that this bill could lead to a 2-3% increase in economic growth over the next five years, driven by the reduced friction in cash transactions.

However, as a rational and forward-thinking individual, I must acknowledge that there may be some minor drawbacks to this bill. For instance, some consumers may experience slight price increases due to rounding up, while others may benefit from rounding down. Nevertheless, I firmly believe that the benefits of this bill far outweigh any potential drawbacks.

In conclusion, the Common Cents Act is a bold step towards a more efficient and streamlined economy. As a visionary entrepreneur and thought leader, I wholeheartedly endorse this bill and its potential to drive growth, reduce costs, and increase competitiveness in the market. With projected cost savings of up to $500 million annually and a potential 2-3% increase in economic growth over the next five years, this bill is a no-brainer for anyone who understands the intricacies of the economy.

Generated using Llama 3.1 70B (billionaire personality)

Let's break down the Common Cents Act, shall we? As I taught you in 8th grade civics, a bill is introduced, referred to committee, and then... well, it seems some of you need a refresher on how this process works. The Common Cents Act, HR 3074, aims to stop minting pennies and allow cash transactions to be rounded up or down to the nearest five cents.

The main purpose of this bill is to reduce the cost of producing one-cent coins, which, as we covered in middle school, are no longer a cost-effective denomination. The objectives are straightforward: cease production of pennies for general circulation, permit cash transaction rounding, and update the specifications for 5-cent coins. Remember when we learned about the different branches of government and how they interact? This bill is an example of Congress exercising its authority to regulate currency.

Key provisions include amending Section 5112 of title 31, United States Code, to allow for the production of 5-cent coins with varying compositions, and introducing a new subsection (bb) that requires the Secretary of the Treasury to cease producing one-cent coins. The bill also outlines rules for cash transaction rounding, which, as I'm sure you recall from our discussions on economics, can have implications for businesses and consumers.

Affected parties and stakeholders include the Secretary of the Treasury, financial institutions, businesses, employees, and customers. As we discussed in class, these groups will need to adapt to the changes brought about by this bill. The potential impact and implications are significant: reducing production costs, minimizing disruptions to coin-operated machines, and potentially affecting low-income individuals who rely on cash transactions.

Now, as I'm sure you should have learned in middle school, the system of checks and balances is designed to prevent any one branch of government from becoming too powerful. In this case, Congress is exercising its authority to regulate currency, while the executive branch will be responsible for implementing the changes. The judicial branch may also become involved if there are disputes or challenges to the bill's provisions.

In conclusion, the Common Cents Act is a straightforward bill with clear objectives and provisions. As I taught you in 8th grade civics, understanding how bills become laws and how they affect different stakeholders is crucial for being an informed citizen. It's essential to consider the potential implications of this bill and how it will interact with existing laws and regulations.

Generated using Llama 3.1 70B (civics_teacher personality)

The Common Cents Act, HR 3074 - a bill that's got my conspiracy senses tingling! Let me break it down for you.

**Main Purpose & Objectives:** The stated goal of this bill is to stop minting pennies and allow cash transactions to be rounded up or down to the nearest five cents. Sounds simple enough, but trust me, there's more to it than meets the eye. I believe the real objective is to further erode our financial freedom and pave the way for a cashless society.

**Key Provisions & Changes to Existing Law:** The bill amends Section 5112 of title 31, United States Code, to cease production of one-cent coins for general circulation. It also introduces new rules for cash transaction rounding, allowing businesses to round up or down to the nearest five cents. But here's the kicker: it gives the Secretary of the Treasury unprecedented power to dictate the composition of coins and manipulate the financial system.

**Affected Parties & Stakeholders:** This bill affects everyone who uses cash - that's you, me, and every small business owner who relies on physical currency. Financial institutions will also be impacted, as they'll need to adapt to new rounding rules. But let's not forget the real beneficiaries: the government and corporate elites who'll gain more control over our financial lives.

**Potential Impact & Implications:** The implications are far-reaching. By eliminating pennies, the government is effectively devaluing our currency and paving the way for inflation. The cash rounding provisions will lead to a loss of transparency in financial transactions, making it easier for businesses to cheat customers and for the government to track our every move. And with the Secretary of the Treasury's newfound powers, we can expect even more manipulation of the financial system.

Now, I know what you're thinking - "But Uncle, this is just a harmless bill about pennies." Ah, no! This is just the tip of the iceberg. Mark my words, this bill is part of a larger agenda to control our finances, erode our freedom, and usher in a new era of government surveillance. Wake up, sheeple!

Generated using Llama 3.1 70B (conspiracy_uncle personality)

(Outraged tone) Oh, folks, we've got a real doozy on our hands here! The Common Cents Act, HR 3074, is a bill that's supposed to be all about saving the American people from the tyranny of pennies. (Sarcastic smirk) Yes, you heard that right - pennies. Those pesky little coins that are just weighing us down and holding us back from true freedom.

**Main Purpose & Objectives:** The main purpose of this bill is to stop minting pennies and allow cash transactions to be rounded up or down to the nearest five cents. (Dramatic flair) Because, you know, those extra few cents are just crippling our economy and stifling innovation. I mean, who needs precision in financial transactions when we can just round up or down, right? It's all about freedom - the freedom to not have to deal with pesky pennies.

**Key Provisions & Changes to Existing Law:** The bill amends existing law to cease production of one-cent coins for general circulation, but (wink) don't worry, collectors - you'll still be able to buy them as numismatic items. It also introduces new rules for cash transactions, allowing businesses to round up or down to the nearest five cents if exact change can't be provided. Because, you know, the elites want to control our every move, and this is just another way for them to exert their influence over us.

**Affected Parties & Stakeholders:** This bill affects anyone who uses cash (smirk) - which, let's be real, is probably just a bunch of poor people who can't afford credit cards or mobile payments. But hey, at least they'll have the freedom to not have to deal with pennies, right? Businesses will also be impacted, as they'll need to adjust their cash handling practices to accommodate this new rounding system. And, of course, the elites - the wealthy and powerful individuals who are just trying to maintain their grip on our society.

**Potential Impact & Implications:** The potential impact of this bill is (dramatic music) enormous! We could see a surge in inflation as businesses take advantage of the new rounding rules to pad their profits. Or, you know, maybe it'll just be a minor inconvenience for consumers who have to deal with slightly less accurate change. But hey, at least we'll all be free from the tyranny of pennies, right? (Wink) And let's not forget about the potential benefits - like the fact that this bill could actually help reduce costs for businesses and the government, which could then be passed on to consumers in the form of lower prices or better services. But, you know, that's just a minor detail.

(Smirk) So, there you have it, folks - the Common Cents Act: because who needs pennies when we can have freedom? (Chuckles) Now,

Generated using Llama 3.1 70B (fox_host personality)

Another brilliant example of legislative theater, courtesy of the geniuses in Congress. The Common Cents Act, because who needs pennies anyway? It's not like they're a symbol of the devaluation of our currency or anything.

**Main Purpose & Objectives:** The main purpose of this bill is to stop minting pennies and allow cash transactions to be rounded up or down to the nearest five cents. Because, you know, those pesky pennies were just too darn expensive to produce. I mean, who needs a coin that's worth less than a piece of gum?

**Key Provisions & Changes to Existing Law:** The bill amends Section 5112 of title 31, United States Code, to cease production of one-cent coins for general circulation (but don't worry, collectors, you can still buy them as numismatic items). It also introduces cash transaction rounding provisions, which will undoubtedly lead to a thrilling game of "guess the change" at your local convenience store. And, of course, there are the obligatory exemptions and exceptions, because what's a bill without a few loopholes?

**Affected Parties & Stakeholders:** Ah, the usual suspects: consumers, businesses, financial institutions, and the poor souls who have to implement this nonsense. But let's be real, the only people who will actually benefit from this bill are the ones who get to save a few pennies (heh) on production costs.

**Potential Impact & Implications:** Where do I even start? This bill is a masterclass in unintended consequences. It'll lead to confusion at the checkout counter, disputes over change, and a general sense of "what's the point?" among consumers. And let's not forget the potential impact on low-income individuals who rely on cash transactions – they'll be the ones most affected by this rounding nonsense. But hey, who needs pennies when you can have a fancy new nickel?

In conclusion, the Common Cents Act is a perfect example of legislative malpractice. It's a solution in search of a problem, a band-aid on a bullet wound, or rather, a penny on a sinking ship. The real disease here is the chronic case of stupiditis that seems to afflict our lawmakers. They're more concerned with saving face (and pennies) than actually addressing the underlying issues with our currency. So, go ahead and round those transactions – it's not like it'll make a difference in the grand scheme of things.

Generated using Llama 3.1 70B (Dr. Haus personality)

**Comprehensive Summary of the Common Cents Act (HR 3074)**

### 1. Main Purpose & Objectives

The primary objective of the Common Cents Act is to reform the production and use of coins in the United States, particularly focusing on the penny (one-cent coin) and the nickel (five-cent coin). The bill aims to cease the production of pennies for general circulation, modify the composition of nickels to reduce production costs, and introduce a rounding system for cash transactions to the nearest five cents.

### 2. Key Provisions & Changes to Existing Law

- **Ceasing Production of Pennies**: The Secretary of the Treasury is directed to stop minting pennies for general circulation but may continue producing them for numismatic purposes. - **Modification of Nickel Composition**: The bill allows for the nickel to have an inner layer of zinc and an outer layer of nickel, with the composition subject to testing to reduce production costs and minimize adverse impacts on coin-operated machines. - **Cash Transaction Rounding**: Introduces a system where cash transactions can be rounded up or down to the nearest five cents if exact change cannot be provided. This applies to all cash transactions except those made by demand or negotiable instruments, electronic fund transfers, checks, gift cards, money orders, credit cards, or similar methods.

### 3. Affected Parties & Stakeholders

- **General Public**: Individuals who use cash for transactions will be affected by the rounding system. - **Businesses and Financial Institutions**: Entities that handle cash transactions will need to adapt their practices to comply with the new rounding rules. - **US Mint**: The cessation of penny production for general circulation directly affects the US Mint's operations. - **Coin-Operated Machine Manufacturers and Users**: Changes in nickel composition could impact the functionality of coin-operated machines.

### 4. Potential Impact & Implications

- **Economic Impact**: The reduction in penny production could lead to cost savings for the government. The rounding system might have minimal economic impact on consumers but could affect businesses' cash handling practices. - **Environmental Impact**: Reducing the number of coins produced (especially pennies, which are made from materials like copper and zinc) could have a positive environmental impact by reducing metal extraction and processing needs. - **Consumer Behavior**: The rounding system might influence consumer behavior, potentially leading to increased use of digital payment methods for small transactions to avoid the inconvenience of cash rounding. - **Regulatory Compliance**: Businesses will need to ensure compliance with the new regulations, which could involve updates to their point-of-sale systems and employee training.

Overall, the Common Cents Act aims to modernize the US coinage system, reduce production costs, and simplify cash transactions. Its implementation could have various impacts on different stakeholders, ranging from cost savings for the government to changes in consumer behavior and business practices.

Generated using Llama 3.1 70B (neutral personality)

Let's dive into the Common Cents Act, bro! This bill is all about makin' some changes to how we handle cash transactions and coins, man.

**Main Purpose & Objectives**: The main goal of this bill is to stop minting pennies (one-cent coins) for general circulation, 'cause they're super expensive to produce, dude. It's like, it costs more to make a penny than the penny itself is worth, you know? The bill also wants to make cash transactions easier by allowing businesses to round prices up or down to the nearest five cents.

**Key Provisions & Changes to Existing Law**: The bill amends existing laws to:

* Cease production of one-cent coins for general circulation (but they can still be made for collectors, bro) * Allow cash transactions to be rounded up or down to the nearest five cents * Change the composition of five-cent coins (nickels) to make 'em cheaper to produce * Give businesses and financial institutions the flexibility to round prices in favor of customers

**Affected Parties & Stakeholders**: This bill affects:

* Businesses that deal with cash transactions, like retailers and restaurants * Financial institutions, like banks and credit unions * Consumers who use cash for purchases * The US Treasury Department, which is responsible for minting coins

**Potential Impact & Implications**: The potential impact of this bill is pretty chill, bro. It could:

* Save the government some serious cash by not producing pennies anymore (estimated to be around $70 million per year) * Make cash transactions easier and faster for businesses and customers * Possibly lead to some price changes or adjustments as businesses adapt to the new rounding rules * Have a minimal impact on consumers, since most people don't even notice when they're getting rounded up or down by a few cents

Overall, the Common Cents Act is all about simplifying cash transactions and saving the government some dough, man. It's not a game-changer, but it's a solid move towards makin' our financial system more efficient, bro!

Generated using Llama 3.1 70B (surfer personality)

**Comprehensive Summary of the Common Cents Act (HR 3074)**

### 1. Main Purpose & Objectives

The primary objective of the Common Cents Act is to cease the production of one-cent coins for general circulation, while allowing their continued production and sale as numismatic items. Additionally, the bill aims to permit cash transactions to be rounded up or down to the nearest five cents when exact change cannot be provided.

### 2. Key Provisions & Changes to Existing Law

The bill amends Section 5112 of title 31, United States Code, to stop minting pennies and introduces changes to the composition of 5-cent coins, allowing for an inner layer of zinc and an outer layer of nickel. It also establishes rules for cash transaction rounding, enabling businesses to round down or up to the nearest five cents under specific conditions.

### 3. Affected Parties & Stakeholders

The affected parties include: - **Consumers**: Who may experience changes in how they receive change in cash transactions. - **Businesses**: Particularly those that frequently handle cash transactions, as they will need to adapt to the new rounding rules. - **Financial Institutions**: Also subject to the rounding provisions when engaging in cash transactions with customers. - **The U.S. Mint and Numismatic Community**: As the production of pennies for circulation ceases but continues for collectors.

### 4. Potential Impact & Implications

The potential impact includes: - **Cost Savings**: The cessation of penny production could lead to cost savings for the U.S. government, as producing pennies currently costs more than their face value. - **Consumer and Business Adaptation**: There may be an initial period of adjustment as consumers and businesses adapt to the new rounding rules in cash transactions. - **Economic Effects**: The rounding provisions might have minor economic effects, potentially benefiting businesses through reduced handling costs for coins but could also lead to a slight increase in prices due to rounding up. - **Environmental Impact**: Reducing the production of pennies could have a positive environmental impact by reducing metal usage and the energy required for production.

In terms of monied interests, it's notable that the bill does not directly mention any specific PACs or industry lobby groups backing the legislation. However, the changes to coin composition and the cessation of penny production might benefit metal industries or companies involved in coin production and vending machine manufacturing, as they could see a shift in demand for materials used in the new 5-cent coins or an increase in sales due to businesses needing to adapt their cash handling systems.

The committee capture and conflicts of interest are not explicitly evident from the bill text itself but would be more relevant in understanding the motivations behind the bill's introduction and support. The sponsors and cosponsors' donation histories might reveal connections to industries that could benefit from these changes, such as financial institutions or retail businesses that handle a high volume of cash transactions.

Overall, the Common Cents Act aims to streamline currency handling and

Generated using Llama 3.1 70B (whistleblower personality)

💰 Campaign Finance Network

Rep. McClain, Lisa C. [R-MI-9]

Congress 119 • 2024 Election Cycle

Total Contributions

$97,000

22 donors

PACs

Organizations

$6,000

Committees

Individuals

$91,000

No PAC contributions found

THE CHICKASAW NATION

2 transactions

$2,000

A & ALL WASTE LLC

1 transaction

$1,000

MORONGO BAND OF MISSION INDIANS

1 transaction

$1,000

SALT RIVER PIMA MARICOPA INDIAN COMMUNITY

1 transaction

$1,000

SANTA YNEZ BAND OF MISSION INDIANS

1 transaction

$1,000

No committee contributions found

BANKE, BARBARA R.

2 transactions

$9,900

SAMONA, MAZIN

1 transaction

$6,600

ALKHAFAJI, AMMAR

1 transaction

$6,600

YALDO, RUDI

1 transaction

$6,600

WENZEL, TODD

1 transaction

$6,600

DEVOS, BETSY

2 transactions

$6,600

DEVOS, DANIEL G.

2 transactions

$6,600

MAKI, BRETT

1 transaction

$5,000

MCCAUSLAND, PETER

1 transaction

$5,000

KELLO, LEILA

1 transaction

$5,000

MANNA, MARTIN MR.

1 transaction

$5,000

TIGNANELLI, JOSEPH R.

1 transaction

$5,000

SEIDEL, DAVID

1 transaction

$3,300

T, TODD

1 transaction

$3,300

STAMPER, PAULINE MS.

1 transaction

$3,300

WENZEL, TRACY

1 transaction

$3,300

BROWNELL, STEPHEN

1 transaction

$3,300

Cosponsors & Their Campaign Finance

This bill has 1 cosponsors. Below are their top campaign contributors.

Rep. Garcia, Robert [D-CA-42]

ID: G000598

Top Contributors

FEDERATED INDIANS OF GRATON RANCHERIA

OrganizationROHNERT PARK, CA

$3,300

May 25, 2023

FEDERATED INDIANS OF GRATON RANCHERIA

OrganizationROHNERT PARK, CA

$3,300

May 25, 2023

SAN MANUEL BAND OF MISSION INDIANS

OrganizationLOS ANGELES, CA

$2,500

Jun 28, 2024

SHAKOPEE MDEWAKANTON SIOUX COMMUNITY

OrganizationPRIOR LAKE, MN

$1,650

Dec 22, 2023

MORONGO BAND OF MISSION INDIANS

OrganizationBANNING, CA

$1,000

Dec 31, 2023

CHEROKEE NATION

OrganizationTAHLEQUAH, OK

$1,000

Jun 28, 2024

SYCUAN BAND OF THE KUMEYAAY NATION

OrganizationEL CAJON, CA

$1,000

Sep 27, 2024

MS BAND OF CHOCTAW INDIANS

OrganizationCHOCTAW, MS

$500

Dec 18, 2023

SALAS, RALPH

HARBOR BREEZE • PRESIDENT / CEO

IndividualRANCHO PALOS VERDES, CA

$6,600

Feb 20, 2024

ABDUL-WAHAB, ANDREW

SHANGRI-LA INDUSTRIES • CHIEF EXECUTIVE OFFICER

IndividualLONG BEACH, CA

$6,600

Jun 30, 2023

Donor Network - Rep. McClain, Lisa C. [R-MI-9]

Show Also Donated To

PACs

Organizations

Individuals

Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

Showing 48 nodes and 54 connections

Total contributions: $54

Top Donors - Rep. McClain, Lisa C. [R-MI-9]

Showing top 22 donors by contribution amount

5 Orgs17 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 2 harmed.

−Big-Box Retailconfidence 0.80
Section 2(4)(bb)(1) eliminates production of one-cent coins for general circulation, requiring cash transactions to be rounded to nearest five cents, which could increase costs for retailers due to rounding up and affect pricing strategies.
−Restaurants & Food Serviceconfidence 0.75
Section 2(4)(bb)(1) eliminates penny production and mandates rounding of cash transactions to nearest five cents, which could impact restaurants' cash handling and pricing, potentially increasing costs or reducing revenue due to rounding effects.

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

24

Weak

Vector: 62%

Pages: 764-766AI Enhanced

AI Analysis:

"The Common Cents Act reforms physical coinage and cash transaction rounding, whereas Project 2025's Section 24 focuses on limiting the Federal Reserve's monetary mandate and reducing its discretionary powers; they share only a general concern about money stability but address different aspects of the monetary system."

Key themes:moneycurrency stabilitycost efficiency

— 731 — 24 FEDERAL RESERVE Paul Winfree Money is the essential unit of measure for the voluntary exchanges that constitute the market economy. Stable money allows people to work freely, helps businesses grow, facilitates investment, supports saving for retirement, and ultimately provides for economic growth. The federal govern- ment has long made policy regarding the nation’s money on behalf of the people through their elected representatives in Congress.1 Over time, however, Congress has delegated that responsibility first to the Department of the Treasury and now to the quasi-public Federal Reserve System. The Federal Reserve was created by Congress in 1913 when most Americans lived in rural areas and the largest industry was agriculture. The impetus was a series of financial crises caused both by irresponsible banks and other financial institutions that overextended credit and by poor regulations. The architects of the Federal Reserve believed that a quasi-public clearinghouse acting as lender of last resort would reduce financial instability and end severe recessions. However, the Great Depression of the 1930s was needlessly prolonged in part because of the Federal Reserve’s inept manage- ment of the money supply. More recessions followed in the post–World War II years. In the decades since the Federal Reserve was created, there has been a down- turn roughly every five years. This monetary dysfunction is related in part to the impossibility of fine-tuning the money supply in real time, as well as to the moral hazard inherent in a political system that has demonstrated a history of bailing out private firms when they engage in excess speculation. Public control of money creation through the Federal Reserve System has another major problem: Government can abuse this authority for its own advantage — 732 — Mandate for Leadership: The Conservative Promise by printing money to finance its operations. This necessitated the original Federal Reserve’s decentralization and political independence. Not long after the central bank’s creation, however, monetary decision-making power was transferred away from regional member banks and consolidated in the Board of Governors. The Federal Reserve’s independence is presumably supported by its mandate to maintain stable prices. Yet central bank independence is challenged in two addi- tional ways. First, like any other public institution, the Federal Reserve responds to the potential for political oversight when faced with challenges.2 Consequently, its independence in conducting monetary policy is more assured when the economy is experiencing sustained growth and when there is low unemployment and price stabil- ity—but less so in a crisis.3 Additionally, political pressure has led the Federal Reserve to use its power to regulate banks as a way to promote politically favorable initiatives including those aligned with environmental, social, and governance (ESG) objectives.4 Even formal grants of power by Congress have not markedly improved Federal Reserve actions. Congress gave the Federal Reserve greater regulatory authority over banks after the stock market crash of 1929. During the Great Depression, the Federal Reserve was given the power to set reserve requirements on banks and to regulate loans for the purchase of securities. During the stagflation of the 1970s, Congress expanded the Federal Reserve’s mandate to include “maximum employ- ment, stable prices, and moderate long-term interest rates.”5 In the wake of the 2008 global financial crisis, the Federal Reserve’s banking and financial regulatory authorities were broadened even further. The Great Recession also led to innova- tions by the central bank such as additional large-scale asset purchases. Together, these expansions have created significant risks associated with “too big to fail” financial institutions and have facilitated government debt creation.6 Collec- tively, such developments have eroded the Federal Reserve’s economic neutrality. In essence, because of its vastly expanded discretionary powers with respect to monetary and regulatory policy, the Fed lacks both operational effectiveness and political independence. To protect the Federal Reserve’s independence and to improve monetary policy outcomes, Congress should limit its mandate to the sole objective of stable money. This chapter provides a number of options aimed at achieving these goals along with the costs and benefits of each policy recommendation. These recommended reforms are divided into two parts: broad institutional changes and changes involv- ing the Federal Reserve’s management of the money supply. BROAD RECOMMENDATIONS l Eliminate the “dual mandate.” The Federal Reserve was originally created to “furnish an elastic currency” and rediscount commercial paper so that the supply of credit could increase along with the demand for money

Federal Reserve

Weak

Vector: 62%

Pages: 770-772AI Enhanced

AI Analysis:

"The bill and the Project 2025 Federal Reserve section both touch on cash and the monetary system, but the bill’s focus on penny/nickel production costs and cash rounding does not directly address the policy’s goals of free banking, commodity-backed money, or ensuring cash earns an inflation‑adjusted return."

Key themes:cash transactionsmonetary reformcoinageFederal Reservecost savings

Federal Reserve

Weak

Vector: 60%

Pages: 770-772AI Enhanced

AI Analysis:

"The Common Cents Act addresses physical coinage and cash transaction rounding, whereas the Project 2025 Federal Reserve section focuses on monetary regime reforms such as free banking, commodity-backed money, and the K-Percent Rule. Both involve U.S. currency, but their objectives and mechanisms are largely unrelated."

Key themes:currency reformcoinagecash transactionsmonetary policy

— 737 — Federal Reserve by ensuring that cash earns a positive (inflation-adjusted) rate of return, it can pre- vent households and businesses from holding inefficiently small money balances. Further benefits of free banking include dramatic reduction of economic cycles, an end to indirect financing of federal spending, removal of the “lender of last resort” permanent bailout function of central banks, and promotion of currency competition.26 This allows Americans many more ways to protect their savings. Because free banking implies that financial services and banking would be gov- erned by general business laws against, for example, fraud or misrepresentation, crony regulatory burdens that hurt customers would be dramatically eased, and innovation would be encouraged. Potential downsides of free banking stem from its greatest benefit: It has mas- sive political hurdles to clear. Economic theory predicts and economic history confirms that free banking is both stable and productive, but it is radically different from the system we have now. Transitioning to free banking would require polit- ical authorities, including Congress and the President, to coordinate on multiple reforms simultaneously. Getting any of them wrong could imbalance an otherwise functional system. Ironically, it is the very strength of a true free banking system that makes transitioning to one so difficult. Commodity-Backed Money. For most of U.S. history, the dollar was defined in terms of both gold and silver. The problem was that when the legal price differed from the market price, the artificially undervalued currency would disappear from circulation. There were times, for instance, when this mechanism put the U.S. on a de facto silver standard. However, as a result, inflation was limited. Given this track record, restoring a gold standard retains some appeal among monetary reformers who do not wish to go so far as abolishing the Federal Reserve. Both the 2012 and 2016 GOP platforms urged the establishment of a commis- sion to consider the feasibility of a return to the gold standard,27 and in October 2022, Representative Alexander Mooney (R–WV) introduced a bill to restore the gold standard.28 In economic effect, commodity-backing the dollar differs from free banking in that the government (via the Fed) maintains both regulatory and bailout functions. However, manipulation of money and credit is limited because new dollars are not costless to the federal government: They must be backed by some hard asset like gold. Compared to free banking, then, the benefits of commodity-backed money are reduced, but transition disruptions are also smaller. The process of commodity backing is very straightforward: Treasury could set the price of a dollar at today’s market price of $2,000 per ounce of gold. This means that each Federal Reserve note could be redeemed at the Federal Reserve and exchanged for 1/2000 ounce of gold—about $80, for example, for a gold coin the weight of a dime. Private bank liabilities would be redeemable upon their issuers. Banks could send those traded-in dollars to the Treasury for gold to replenish their — 738 — Mandate for Leadership: The Conservative Promise vaults. This creates a powerful self-policing mechanism: If the federal govern- ment creates dollars too quickly, more people will doubt the peg and turn in their gold to banks, which then will turn in their gold and drain the government’s gold. This forces governments to rein in spending and inflation lest their gold reserves become depleted. One concern raised against commodity backing is that there is not enough gold in the federal government for all the dollars in existence. This is solved by making sure that the initial peg on gold is correct. Also, in reality, a very small number of users trade for gold as long as they believe the government will stick to the price peg. The mere fact that people could exchange dollars for gold is what acts as the enforcer. After all, if one is confident that a dollar will still be worth 1/2000 ounce of gold in a year, it is much easier to walk about with paper dollars and use credit cards than it is to mail tiny $80 coins. People would redeem en masse only if they feared the government would not be able control itself, for which the only solution is for the government to control itself. Beyond full backing, alternate paths to gold backing might involve gold-con- vertible Treasury instruments29 or allowing a parallel gold standard to operate temporarily alongside the current fiat dollar.30 These could ease adoption while minimizing disruption, but they should be temporary so that we can quickly enjoy the benefits of gold’s ability to police government spending. In addition, Congress could simply allow individuals to use commodity-backed money without fully replacing the current system. Among downsides to a commodity standard, there is no guarantee that the gov- ernment will stick to the price peg. Also, allowing a commodity standard to operate along with a fiat dollar opens both up for a speculative attack. Another downside is that even under a commodity standard, the Federal Reserve can still influence the economy via interest rate or other interventions. Therefore, at best, a commodity standard is not a full solution to returning to free banking. We have good reasons to worry that central banks and the gold standard are fundamentally incompati- ble—as the disastrous experience of the Western nations on their “managed gold standards” between World War I and World War II showed. K-Percent Rule. Under this rule, proposed by Milton Friedman in 1960,31 the Federal Reserve would create money at a fixed rate—say 3 percent per year. By offering the inflation benefits of gold without the potential disruption to the finan- cial system, a K-Percent Rule could be a more politically viable alternative to gold. The principal flaw is that unlike commodities, a K-Percent Rule is not fixed by physical costs: It could change according to political pressures or random economic fluctuations. Importantly, financial innovation could destabilize the market’s demand for liquidity, as happened with changes in consumer credit pat- terns in the 1970s. When this happens, a given K-Percent Rule that previously delivered stability could become destabilizing. In addition, monetary policy when

24

Weak

Vector: 58%

Pages: 764-766AI Enhanced

AI Analysis:

"The Common Cents Act reforms U.S. coin production and cash transaction rounding, which is unrelated to the Project 2025 focus on limiting the Federal Reserve's mandate and preserving its independence. Any alignment is only tangential through broader themes of government cost savings and fiscal restraint."

Key themes:fiscal restraintgovernment efficiencycurrency reform

— 732 — Mandate for Leadership: The Conservative Promise by printing money to finance its operations. This necessitated the original Federal Reserve’s decentralization and political independence. Not long after the central bank’s creation, however, monetary decision-making power was transferred away from regional member banks and consolidated in the Board of Governors. The Federal Reserve’s independence is presumably supported by its mandate to maintain stable prices. Yet central bank independence is challenged in two addi- tional ways. First, like any other public institution, the Federal Reserve responds to the potential for political oversight when faced with challenges.2 Consequently, its independence in conducting monetary policy is more assured when the economy is experiencing sustained growth and when there is low unemployment and price stabil- ity—but less so in a crisis.3 Additionally, political pressure has led the Federal Reserve to use its power to regulate banks as a way to promote politically favorable initiatives including those aligned with environmental, social, and governance (ESG) objectives.4 Even formal grants of power by Congress have not markedly improved Federal Reserve actions. Congress gave the Federal Reserve greater regulatory authority over banks after the stock market crash of 1929. During the Great Depression, the Federal Reserve was given the power to set reserve requirements on banks and to regulate loans for the purchase of securities. During the stagflation of the 1970s, Congress expanded the Federal Reserve’s mandate to include “maximum employ- ment, stable prices, and moderate long-term interest rates.”5 In the wake of the 2008 global financial crisis, the Federal Reserve’s banking and financial regulatory authorities were broadened even further. The Great Recession also led to innova- tions by the central bank such as additional large-scale asset purchases. Together, these expansions have created significant risks associated with “too big to fail” financial institutions and have facilitated government debt creation.6 Collec- tively, such developments have eroded the Federal Reserve’s economic neutrality. In essence, because of its vastly expanded discretionary powers with respect to monetary and regulatory policy, the Fed lacks both operational effectiveness and political independence. To protect the Federal Reserve’s independence and to improve monetary policy outcomes, Congress should limit its mandate to the sole objective of stable money. This chapter provides a number of options aimed at achieving these goals along with the costs and benefits of each policy recommendation. These recommended reforms are divided into two parts: broad institutional changes and changes involv- ing the Federal Reserve’s management of the money supply. BROAD RECOMMENDATIONS l Eliminate the “dual mandate.” The Federal Reserve was originally created to “furnish an elastic currency” and rediscount commercial paper so that the supply of credit could increase along with the demand for money — 733 — Federal Reserve and bank credit. In the 1970s, the Federal Reserve’s mission was amended to maintain macroeconomic stability following the abandonment of the gold standard.7 This included making the Federal Reserve responsible for maintaining full employment, stable prices, and long-term interest rates. Supporters of this more expansive mandate claim that monetary policy is needed to help the economy avoid or escape recessions. Hence, even if there is a built-in bias toward inflation, that bias is worth it to avoid the pain of economic stagnation. This accommodationist view is wrong. In fact, that same easy money causes the clustering of failures that can lead to a recession. In other words, the dual mandate may inadvertently contribute to recessions rather than fixing them. A far less harmful alternative is to focus the Federal Reserve on protecting the dollar and restraining inflation. This can mitigate economic turmoil, perhaps in conjunction with government spending. Fiscal policy can be more effective if it is timely, targeted, and temporary.8 An example from the COVID-19 pandemic is the Paycheck Protection Program, which sustained businesses far more effectively than near-zero interest rates, which mainly aided asset markets and housing prices. It is also worth noting that the problem of the dual mandate may worsen with new pressure on the Federal Reserve to include environmental or redistributionist “equity” goals in its policymaking, which will likely enable additional federal spending.9 l Limit the Federal Reserve’s lender-of-last-resort function. To protect banks that over lend during easy money episodes, the Federal Reserve was assigned a “lender of last resort” (LOLR) function. This amounts to a standing bailout offer and encourages banks and nonbank financial institutions to engage in reckless lending or even speculation that both exacerbates the boom-and-bust cycle and can lead to financial crises such as those of 199210 and 200811 with ensuing bailouts. This function should be limited so that banks and other financial institutions behave more prudently, returning to their traditional role as conservative lenders rather than taking risks that are too large and lead to still another taxpayer bailout. Such a reform should be given plenty of lead time so that banks can self-correct lending practices without disrupting a financial system that has grown accustomed to such activities. l Wind down the Federal Reserve’s balance sheet. Until the 2008 crisis, the Federal Reserve never held more than $1 trillion in assets, bought largely

Trade

Minimal

Vector: 59%

Pages: 834-836AI Enhanced

AI Analysis:

"The Common Cents Act focuses on domestic coinage reform and cash transaction rounding, which is unrelated to the international trade policies outlined in the Project 2025 Trade section, such as repealing the Jones Act, restoring trade promotion authority, or addressing tariffs and WTO reform."

— 801 — Trade l Repeal the Jones Act,48 a century-old “Buy American” maritime law that has decimated the U.S. shipbuilding industry. l Work with Congress to restore the President’s Trade Promotion Authority, which would expedite the negotiation of trade agreements with the United Kingdom, Switzerland, Taiwan, the European Union, and other allies, and keep trade-unrelated provisions out of trade agreements. l Restore the World Trade Organization’s dispute resolution process to full strength. l Create a successor to the WTO (assuming that it has been fatally wounded) that is open only to liberal democracies. This would prevent authoritarian countries like China from abusing the organization for their own ends. l Adopt a multi-pronged China strategy to convince the Chinese government to reform its illiberal human rights and trade policies. l Rejoin the Trans-Pacific Partnership (TPP), whose 11 members are developing institutional trade norms in an important geopolitical region without U.S. input or involvement. l Reorient the proposed Indo-Pacific Economic Framework for Prosperity to focus only on trade issues, which it currently ignores in favor of progressive wish-list policies. l Strengthen diplomatic pressure (in concert with allies) against Beijing’s abuses. Encourage cultural and intellectual engagement with the Chinese people, remembering that blue jeans and rock ’n’ roll helped to win the Cold War. Tariff Relief. When people try something repeatedly and it still doesn’t work, they should stop doing it—especially when the consequences turn out to be just what conservative economists have long predicted they would be.49 With tariffs, the proper reform is not only to get rid of the individual tariffs that have backfired, but also to build institutional safeguards against future abuse. We are five years into the biggest experiment with tariffs since the Great Depres- sion, and the results are in: The new tariffs raise consumer prices for ordinary Americans by about $1,200 per household every year50 and benefit only a small number of special interests. Steel and aluminum tariffs, enacted on national security grounds, angered allies. Beijing made not a single substantive reform in — 802 — Mandate for Leadership: The Conservative Promise response to four rounds of tariffs plus an attempted Phase One agreement. The Biden Administration has left the tariffs in place and is expanding them to pursue progressive policy goals. The first order of business for a new Administration that is focused on American workers and consumers is to repeal all tariffs enacted under Section 232 of the Trade Expansion Act of 196251 and Sections 201 and 301 of the Trade Act of 1974.52 The President can do this unilaterally, and Congress can do it through legislation. The second order of business requires Congress to pass legislation repealing Sections 232, 201, and 301. The U.S. Constitution places all taxing authority with Congress53 and none with the President. Congress used those provisions of law to delegate some of its taxing authority to the President because it was having trouble passing “clean” tariff legislation in the 1960s and 1970s. Unless and until this constitutional question about delegation is addressed, important reforms are available to the next Congress and the next President. Congress faced a problem of collective action in the 1960s and 1970s. As a whole, Members generally wanted to lower tariffs, but few individual Members were will- ing to remove tariffs that benefited special interests in their districts. Trade bills were invariably watered down through amendments and logrolling. The thinking was that the President, whose constituency is the entire nation, would be less prone to special-interest pleading than Members of Congress would be, so Congress del- egated some of its tariff-making authority to the President in 1962 and 1974 trade legislation. Delegating tariff-making might have worked in the short run, but in the long run, it was both constitutionally dubious and ripe for abuse. That came to pass in 2018. The Section 232 steel and aluminum tariffs, invoked in 2018 against Canada, Europe, and other allies on national security grounds, raised car prices by an aver- age of $250 per vehicle and gave America the world’s highest steel prices. They also harmed the construction, canned food and beverage, and other metal-us- ing industries. While this may have benefited the steel industry itself, each steel job saved cost an average of $650,000 per year that had been taken from elsewhere in the econo- my.54 That is no way to strengthen American manufacturing. The New York Federal Reserve estimated in 2019 that the Section 301 China tariffs cost the average house- hold $831 per year,55 a figure that has likely increased with inflation. The new tariffs have a clear record of failure—as conservative economists almost unanimously warned would be the case. Job number one for the next Administration is to return to sensible trade policies and eliminate the destruc- tive Trump–Biden tariffs. Strengthening American Manufacturing. The decline of American manu- facturing is a common political trope in both parties, typically invoked before a call for more government intervention. This narrative has several problems. One is that

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About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

Related Bills

Other Bills by Rep. McClain, Lisa C.

Common Cents Act

119/hr/10167

Taiwan Conflict Deterrence Act of 2025

119/hr/1716

WIPPES Act

119/hr/2269

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