US Senate Passes Bill to End Penny Production

The U.S. Senate passed the Common Cents Act on September 28 by unanimous consent, a bipartisan bill that will formally cease the minting of pennies for general circulation. This legislation now proceeds to President Donald Trump's desk for his signature. The bill mandates that the Treasury secretary stop producing one-cent coins, while also establishing new rules for price rounding in transactions where exact change cannot be provided. Under these rules, prices ending in 1, 2, 6, or 7 cents will be rounded down to the nearest nickel, and prices ending in 3, 4, 8, or 9 cents will be rounded up to the nearest nickel. The legislation clarifies that all pennies minted before the Common Cents Act becomes law will remain legal tender. However, it prohibits the U.S. Mint from creating any new pennies for everyday use, with a single significant exception. The bill includes a provision allowing the Treasury secretary to "continue to produce and issue one-cent coins for sale as numismatic items." This means that while the penny will disappear from daily commerce, it can still be produced and sold as a collectible item. The U.S. Mint has not yet commented on whether any specific commemorative pennies are being planned under this new provision. The Trump administration had previously sought to discontinue the penny in the prior year, citing the substantial cost of production, which at the time was nearly four cents per coin. The inclusion of the numismatic sales clause in the Common Cents Act ensures that the penny, in some form, will persist. Beyond the currency intended for general circulation, such as dollar bills and quarters, the U.S. Mint also produces and offers commemorative coins and medals in limited quantities. These commemorative coins, while technically legal tender, are primarily acquired by collectors rather than being used as circulating currency. They are sold with a surcharge, and the funds generated are directed towards various causes, memorials, and museums. The concept of commemorative coins in the United States dates back to at least 1892, with the Columbian Exposition half-dollar, which featured Christopher Columbus and his ship, the Santa Maria.