Penny Production Ends for Circulation, Continues as Collectible

The U.S. Senate has unanimously passed the Common Cents Act, a bill that will formally cease the minting of the one-cent coin for general circulation. The legislation now proceeds to the president for signature.

The act prohibits the U.S. Mint from producing new pennies for everyday transactions. However, it includes a specific clause permitting the Treasury Secretary to continue producing and issuing one-cent coins for sale as numismatic items, essentially as collectibles.

This change also introduces new rounding rules for cash transactions. Prices ending in 1, 2, 6, or 7 cents will be rounded down to the nearest nickel, while those ending in 3, 4, 8, or 9 cents will be rounded up. This aims to simplify transactions without the need for pennies.

The U.S. Mint had already stopped producing pennies for circulation last year due to high production costs, reportedly costing nearly four cents to make each one-cent coin. The provision for numismatic sales allows the penny to persist in a different capacity, potentially appealing to collectors of U.S. coinage.