Latest news with #MakeSenseNotCentsAct
The Hindu
23-05-2025
- Business
- The Hindu
Stop making cents: U.S. Mint moves forward with plans to kill penny
The Trump administration says making cents doesn't make sense anymore. The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed on Thursday (May 22, 2025). This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorised to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilised, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States'. Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Mr. Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Mr. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise, simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says, 'There has been an evolution over the past six months that inevitably the production of the penny will be halted'. His group advocates for the U.S. to find ways to reduce the cost of producing nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
Express Tribune
23-05-2025
- Business
- Express Tribune
US Treasury to end penny production by early 2026
Listen to article The US Treasury Department has officially confirmed it will end production of the penny coin by early 2026, marking a significant shift in American currency policy after years of debate over the coin's utility and rising production costs. The move follows a directive from President Donald Trump issued in February 2025, and comes amid growing bipartisan support in Congress to phase out the lowest denomination of US currency. The Treasury has reportedly placed its final order for penny blanks, with officials stating that the US Mint will continue to manufacture the coin only while existing materials last. The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 Once the current inventory is exhausted, no new pennies will enter circulation, although existing coins will remain legal tender and can still be used for purchases. The department estimates that halting production will save American taxpayers $56 million annually. President Trump described the penny as "wasteful," noting that each coin now costs over 3.6 cents to produce—more than three times its face value. In a post on social media, he said, 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Let's rip the waste out of our great nation's budget, even if it's a penny at a time.' The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 In Congress, lawmakers introduced two bipartisan bills this year aimed at permanently ending penny production: the Make Sense Not Cents Act and the Common Cents Act. These measures reflect a broader consensus that the coin's continued production no longer makes economic sense. As a result of the change, retailers and other businesses will begin rounding cash transaction totals to the nearest five cents. Electronic payments, however, will remain unchanged and can still reflect exact amounts. The penny, first introduced in 1793 and bearing President Abraham Lincoln's likeness since 1909, has long been a fixture of American life. But critics argue it is increasingly obsolete in a digital economy and often ends up forgotten in jars and drawers. Supporters, including charitable groups and some economists, argue that the coin is still useful for maintaining price accuracy and supporting donation drives. There are currently around 114 billion pennies in circulation. While the US Mint will continue producing nickels, experts warn this could become more costly. Nickels cost nearly 14 cents each to mint, raising concerns that ending penny production might simply shift financial pressure elsewhere in the coinage system. The United States now joins other nations such as Canada, Australia, and New Zealand, which have already phased out their lowest-denomination coins. Analysts say the success of the policy will depend on how the transition is managed and whether the government can also reduce production costs for more expensive coins like the nickel.
New Indian Express
23-05-2025
- Business
- New Indian Express
Stop making cents: US Mint moves forward with plans to kill the penny
WASHINGTON: The Trump administration says making cents doesn't make sense anymore. The US Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilized, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States.' Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says 'there has been an evolution over the past six months that inevitably the production of the penny will be halted.' His group advocates for the U.S. to find ways to reduce the cost of producing the nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
Yahoo
22-05-2025
- Business
- Yahoo
The penny is officially on the way out
The U.S. Treasury has officially made its last order of blank pennies, marking the beginning of the end for the one-cent coin, which has been in circulation for over two centuries. '[T]he United States Mint will continue to manufacture pennies while an inventory of penny blanks exists,' a Treasury Department spokesperson told NBC News on Thursday, with the last of the new pennies set to enter circulation early next year. Last year was the 19th consecutive fiscal year that the cost of producing the coin was above its face value. In 2024, the cost of making the penny increased 20%, according to a report from the U.S. Mint. The one-cent coin currently costs the government 3.69 cents to make. Halting penny production is expected to save taxpayers $56 million annually. Without new pennies entering circulation, the supply of the coin will eventually dry up and force businesses to round prices to the nearest nickel. However, nickels also boast high production costs; each five-cent coin costs the U.S. Mint 13.78 cents to make. Proposals to eliminate the penny have come from both sides of the aisle. Earlier this month, Republican Sen. Mike Lee of Utah and Democratic Sen. Jeff Merkley of Oregon joined forces to introduce the Make Sense Not Cents Act. 'It's the opposite of 'common cents' for taxpayers' dollars to fund wasteful spending like producing pennies,' Merkley said in a statement. '[T]hat is something that both Democrats and Republicans support to seriously take on government waste.' President Donald Trump has also pushed the Treasury Department to stop minting new pennies. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote on Truth Social in February. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' While Congress has the authority over the discontinuation or elimination of coins, the Treasury Department can halt new production. A recent YouGov poll found that 42% of Americans favored eliminating the penny, while 30% opposed. In that same survey, one-third of Americans said they don't use pennies in their daily lives, the highest share for any denomination. The last time a coin denomination was discontinued was in 1857, when Congress eliminated the half-cent coin. This article was originally published on
Yahoo
22-05-2025
- Business
- Yahoo
America is finally killing the penny
The U.S. Mint confirmed on Thursday that the current crop of one-cent coins will be the last ever produced. It's been a long time coming: Two previous bills to cancel the penny had been proposed in 1990 and 2017, both by Arizona Republicans, one of them co-sponsored by the late Senator John McCain. In February, President Donald Trump announced on social media that he had directed the Treasury to cease penny production. He did so on his social media site while watching the Super Bowl, which raised questions about his seriousness on the issue. But this week's announcement also came on the heels of a new bipartisan Senate bill, from Utah Republican Mike Lee and Oregon Democrat Jeff Merkley, called the Make Sense Not Cents Act. The penny is only one year younger than the U.S. Mint itself, dating back to 1793. It initially had an image of Lady Liberty, but since 1909, it has featured the profile of Abraham Lincoln. This year, the penny is on its way to be as much of a relic as the half-cent, abolished in 1857. Or the $10 and $20 coins, which were discontinued in 1933. A Treasury official told the Associated Press that the move is anticipated to save $56 million. The cost of producing each penny increased by just over 20% in 2024, the Mint said in its annual report where 'the unit cost for pennies (3.69 cents) and nickels (13.78 cents) remained above face value for the 19th consecutive fiscal year.' The U.S. is one of the last major economies to have a centesimal coin. Canada phased out its penny in 2012; Australia and New Zealand did so in 1992 and 1990, respectively. Sweden got started back in 1972. Don't worry, though, there will be plenty of little Lincolns floating around for a very long time. A New York Times (NYT) article from September 2024 reported that 'a conservative estimate holds that there are 240 billion pennies lying around the United States — about 724 ($7.24) for every man, woman and child there residing, and enough to hand two pennies to every bewildered human born since the dawn of man.' And look out, nickels, don't think you're safe from the DOGE watchlist: each 5-cent coin costs 14 cents to the latest news, Facebook, Twitter and Instagram.
