The U.S. House of Representatives on Monday passed the latest iteration of the Common Cents Act, a bill that would formally end the production of new pennies and modify the composition of the nickel. The legislation, which cleared the chamber by voice vote, now heads to the White House for the President's signature.
The Senate had already approved an identical version of the bill with unanimous consent last month, setting the stage for a swift enactment. The House's action represents a significant step toward what many see as the inevitable demise of the penny, which has not been minted for circulation in nearly a year.
While a previous version of the Common Cents Act passed the House earlier this year, it lacked explicit language about discontinuing a coin. The new version, however, clearly instructs the Treasury Department to stop minting pennies, effectively killing the coin. The bill also addresses the nickel, which currently costs more to produce than its face value due to rising metal prices.
Under the new legislation, the Treasury would be required to transition the nickel to a more cost-effective metal blend, potentially using steel or other cheaper materials. This change aims to reduce the financial burden on taxpayers, as the U.S. Mint has been losing money on both pennies and nickels for years.
The move has drawn mixed reactions from lawmakers and industry stakeholders. Supporters argue that eliminating the penny and modernizing the nickel will save millions of dollars annually and streamline cash transactions. Critics, however, worry about the impact on consumers and businesses that rely on pennies for pricing and charitable donations.
Proponents point to the experience of other countries, such as Canada, which eliminated its penny in 2013 without major disruption. They also note that the U.S. has already reduced penny production significantly, with the Mint halting new pennies for circulation in late 2023.
The bill's passage comes amid broader discussions about the future of U.S. currency and the role of cash in an increasingly digital economy. Some experts argue that the move could accelerate the shift toward cashless payments, while others believe it will have minimal effect on consumer behavior.
If signed into law, the Treasury would have a transition period to implement the changes, likely phasing out penny production over several months. The nickel's composition change would also take time, as the Mint would need to test and certify new metal blends.
The White House has not yet indicated whether President Biden will sign the bill, but given the bipartisan support in both chambers, it is expected to become law. Once enacted, the U.S. would join a growing list of countries that have abandoned their lowest-denomination coins.
For now, the penny remains legal tender, and existing coins will continue to circulate. But the days of the penny are clearly numbered, and the nickel's future is set to change as well.
