Full Breakdown
Congress Passes Common Cents Act, Formalizing End of Penny Production
By Drooid · · How we work
Core Event: Senate Approval of the Common Cents Act
In late September 2024, the U.S. Senate gave final approval to H.R. 10167, the Common Cents Act, sending the bill to President Donald Trump for signature. The legislation formally ends the production of the one-cent coin after 234 years of minting and establishes a federal framework that permits retailers to round cash transactions to the nearest five cents when pennies are unavailable.
Background & Context
The United States Mint halted circulation-penny production in 2025 after a decline in cash usage and mounting production costs. The penny, first minted in 1792, now costs almost four cents to produce, far exceeding its face value. Retailers and restaurants have reported “cascading impacts” from the shortage, often rounding change or offering gift-card incentives to avoid legal uncertainty. The Common Cents Act codifies a national rounding rule and clarifies that existing pennies remain legal tender.
Data & Statistics
- Production cost: The Mint reports each penny costs ? $0.04 to make.
- Annual savings: Ceasing penny production would save $56 million per year.
- Recent output: The Mint produced 3.2 billion pennies in 2024.
- Nickel cost: In fiscal year 2025, a nickel cost > $0.13 to produce, slightly down from $0.1378 the prior year.
- Penny stock: Estimates suggest more than 300 billion pennies remain in circulation, equivalent to about $8 per U.S. citizen.
Official Statements & Responses
President Trump, who previously called the penny “wasteful” in a 2023 social-media post, is expected to sign the act in the coming weeks.
Senators Cynthia Lummis (WY) and Kirsten Gillibrand (NY) were praised by industry groups for their bipartisan support.
The Treasury Secretary will be authorized to evaluate alternative metal compositions for the nickel, potentially shifting to a zinc core with a nickel outer layer to lower costs while minimizing impact on vending-machine compatibility.
Verbatim Quotes
- “We appreciate Congress passing the Common Cents Act to address the issues restaurant operators have been working through since the penny shortage started,” — Michelle Korsmo, president and CEO of the National Restaurant Association
- “When it comes to taking on waste and making sure our tax dollars are spent wisely, it’s common sense that we should stop making a coin that costs nearly four times more than it’s worth to produce,” — Robert Garcia
- “We thank Senators Lummis and Gillibrand as well as Representatives McClain and Garcia for their commitment to helping retailers and consumers by getting the Common Cents Act passed,” — Brennan Duckett, director of regulatory and policy at NACS
- “Independent grocers process millions of transactions every day, and the disappearance of the penny created a very practical problem at the checkout counter,” — Stephanie Johnson, National Grocers Association (NGA) senior vice president and head of government affairs
What’s Next
President Trump is slated to sign the Common Cents Act within the next few weeks. Once enacted, businesses may round cash totals to the nearest five cents, with electronic payments remaining calculated to the exact cent. Existing pennies will stay legal tender, and the Treasury will begin testing new nickel compositions under the act’s provisions.