Congress has passed legislation to formally end production of circulating pennies, sending the measure to President Donald Trump. Sen. Kirsten Gillibrand, a New York Democrat who helped sponsor the Common Cents Act, said the vote would cut federal minting costs.
The U.S. Mint says it already suspended production of pennies for circulation in 2025 under existing Treasury authority. The new bill would put that decision into law if signed; it does not mean the coins people already hold suddenly lose their value.
What changes for cash transactions
Existing pennies remain legal tender, according to the Mint. People can continue to use them in stores and for other payments. The bill addresses the growing difficulty of making exact change as the supply of pennies declines, allowing cash totals to be rounded to the nearest 5 cents when needed.
The rounding framework applies to cash transactions, not prices themselves or electronic payments. A shopper paying by card is not in the same position as one receiving physical change. Retailers and banks have sought federal guidance to handle the transition consistently.
The Mint says producing a penny costs about 3.69 cents, more than three times its face value. It estimates suspending circulating production will save roughly $56 million a year. Gillibrand described the expense as an unnecessary use of taxpayer money.
The Common Cents Act also addresses the composition of nickels, which may become more important for cash change without newly minted pennies. A House committee summary says the measure permits a more cost-effective nickel design.
A legal change after production stopped
The Treasury Department had already decided that further circulating penny production was not necessary. The Mint's action left the coin in circulation but stopped making new ones for everyday commerce. Congress' vote would provide a permanent statutory rule rather than relying only on the department's existing authority.
The Mint says it may continue to make limited collector versions of the penny. That is separate from producing coins for circulation. The legislation now awaits presidential action; it is not yet law.
For consumers and businesses nationwide, the immediate practical issue is cash handling as pennies become less available, not an exchange deadline or a requirement to turn in coins. The Mint has not told the public to stop using pennies already in circulation.
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