A bipartisan group of lawmakers introduced legislation Wednesday to eliminate the production of the penny, after President Donald Trump ordered the Treasury to do so in February.
The “Common Cents Act” would require the Treasury to stop minting pennies and require cash transactions to be rounded up or down to the nearest five cents. Pennies would still be legal tender under the bill, but they would no longer be produced except when “appropriate solely to meet the needs of numismatic collectors of the one-cent coin.”
Reps. Lisa McClain (R-MI) and Robert Garcia (D-CA), along with Sens. Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), introduced the legislation.
“Pennies are a waste of taxpayer dollars,” McClain said in a statement. “It doesn’t make sense to spend millions each year minting coins that so few people actually use. President Trump’s common-sense idea should become law. We are taking a decisive step toward fiscal responsibility and updating our currency for the 21st century.”
The U.S. Mint’s annual report for fiscal 2024 found that during that year, a penny cost 3.69 cents to make, and its production resulted in a loss of $85 million for the Mint.
“The penny is outdated and inefficient and no longer serves the needs of our economy,” Gillibrand said in a statement. “By suspending its production, we can reduce government spending, streamline transactions, and move toward a more practical financial system. It’s time to invest in a future that works for the 21st century economy, and that starts with suspending production of the penny.”
The rounding for cash transactions would result in totals ending in one, two, six, or seven cents being rounded down to the nearest five-cent mark, while totals ending in three, four, eight, or nine cents would be rounded up to the nearest five-cent mark. The rounding rule for cash transactions would not apply to totals of $0.01 or $0.02, which would be rounded up to $0.05.
TRUMP ORDERS TREASURY TO STOP ‘WASTEFUL’ PRODUCTION OF PENNIES
The legislation comes months after Trump railed against the production of pennies for being “wasteful” as his administration explores cuts to federal waste and fraud.
“For far too long the United States has minted pennies which literally cost us more than 2 cents,” Trump said in a Truth Social post in February. “This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”