A bipartisan group of representatives introduced the Common Cents Act to end penny production and require cash transactions to round to the nearest five cents. The bill responds to rising costs—each penny now costs nearly four cents to produce—with supporters arguing it would cut waste and align US practices with countries like Canada and Australia.
A group of U.S. representatives introduced legislation this week to end the production of pennies.
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.
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).
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.