The one-cent coin, also called the penny, may soon disappear from wallets and cash registers in the United States. A new bill called the Common Cents Act was introduced on April 30, and if it gets approved, the US Mint will stop producing pennies altogether.
Many people are now asking: why stop making the penny? Here’s what’s happening.
Why End the Penny?
According to US lawmakers Lisa McClain and Robert Garcia, the main reason is simple – it’s too expensive to make. Each penny costs about 3.96 cents to produce, which is almost four times more than its actual value. In 2024 alone, the US Mint lost around $83.5 million just by making 3.2 billion pennies.
That’s not all. More than half of the coins shipped by the Mint last year were pennies. This means that even though they are rarely used, they still take up a lot of effort and cost to produce.
The idea behind the Common Cents Act is to save taxpayer money and stop wasting resources on something that isn’t very useful anymore.
What Will Change?
If the bill is passed, here’s how things will change:
Cash transactions will be rounded to the nearest five cents.
For example, if your bill is $2.03, you’ll pay $2.05. If it’s $2.02, you’ll pay $2.00.
Card, digital, or mobile payments won’t be affected at all. So if you use your phone or card to pay, you’ll still be charged the exact amount.
If approved by Congress, the law would start one year after being signed.
The US Is Not Alone
The US would be joining several other countries that have already removed their lowest-value coins. Canada and Australia have already stopped using the penny and round up cash payments.
This idea is not completely new in US history either. The half-cent coin was officially removed by Congress way back in 1857.
Trump Also Wanted to End the Penny
Former President Donald Trump had previously said he told the Treasury Department to stop making new pennies. However, he did not have the legal power to make it happen, as only Congress can decide on changes to US currency.
Interestingly, the Treasury Department also said that the nickel (5-cent coin) is also expensive to make. Each nickel costs around 14 cents, meaning this coin might also be removed in the future.
Rare Pennies Still Hold Big Value
While most pennies are almost worthless, some rare old pennies are worth a fortune. Collectors look for pennies with printing errors or unique features.
A few examples include:
A 1943 penny worth $840,000
A Lincoln penny that’s valued at $336,000
Three pennies still in circulation today are worth up to $138,000
Some other rare coins can even be worth as much as $3.7 million.
So, before you throw out your old coins, it might be worth checking if you have a hidden treasure!
The plan to stop making the penny could soon become a reality. With the US losing millions every year just to produce a coin worth one cent, the change seems practical. Cash payments will be rounded, digital payments will remain the same, and taxpayers could save big money in the long run. While it may be the end of the penny in daily use, rare coins will always have value for collectors. Keep an eye on your spare change—you might just be holding a piece of history.
