‘Common Cents Act’ would direct Mint to end production of the penny

A group of U.S. representatives introduced legislation this week to end the production of pennies. 

Common Cents Act

The Common Cents Act was introduced April 30, according to press releases posted on the official government websites of Lisa McClain (R-Mich.) and Robert Garcia (D-Calif.).

Big picture view:

The legislation would end the minting of the penny and require cash transactions to be rounded up or down to the nearest five cents. Non-cash transactions, such as credit card, debit card, mobile phone payments, and checks, would not be affected.

The bill would take effect one year after its enactment. 

What they're saying:

The representatives say the practice would follow Australia and Canada, who have eliminated one-cent coins, and that several other countries commonly round cash transactions to the nearest five cents. 

They say pennies are a waste of taxpayer dollars and that halting production would cut waste and boost efficiency. 

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Penny distribution

The backstory:

President Donald Trump said earlier this year he directed the Treasury Department to stop minting new pennies, citing the rising cost of producing the one-cent coin.

Though it was unclear at the time if Trump had the power to unilaterally eliminate the coin. Currency specifications - including the size and metal content of coins - are dictated by Congress.

By the numbers:

The U.S. Mint reported losing $85.3 million in the 2024 fiscal year on the nearly 3.2 billion pennies it produced.

Also that fiscal year, which ended in September, the penny was the coin that accounted for the largest shipment - 54% of the mix, according to a report from the Treasury Department. Quarters was the second biggest shipment (27%), followed by dimes (14%) and nickels (3.5%). 

Additionally, for the 19th consecutive year, it cost more to mint and distribute a penny than it’s worth. 

The department’s report states that a unit cost for a single penny is nearly four cents (3.96 cents).

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Dig deeper:

The unit cost for nickels is also above face value, costing nearly 14 cents to mint and distribute a nickel, the Treasury report stated. 

Fun fact:

It wouldn’t be the first time the U.S. has eliminated its least valuable coin. The half-cent coin was discontinued by Congress in 1857.