Congress eyes penny ban—but who pays the rounding cost?
H.R. 1270 — To suspend the production of the penny and nickel, to require the Comptroller General of the United States to carry out a study on pennies and nickels, and for other purposes. · Filed by David Schweikert (R-AZ) · Introduced Feb 12, 2025 · Referred to committee
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What it does
This bill suspends U.S. production of pennies and nickels for 10 years, except for collector coins sold to numismatists. Existing pennies and nickels remain legal tender. The bill requires the Government Accountability Office to study the fiscal and practical effects of the suspension—including savings and rounding impacts—and recommend whether to keep the ban, end it permanently, or restart production.
Why we flagged it
The bill is a straightforward cost-control measure targeting the Mint's operating losses on low-denomination coins. It is not a commemorative, tax, or regulatory carve-out—it is a direct operational suspension with a mandated study.
What the text implies
- Rounding cash transactions up or down to the nearest dime may disproportionately affect low-income, unbanked, or elderly populations who rely on cash and lack digital payment access.
- Vending machines, laundromats, and other coin-operated devices may require retrofitting or replacement, imposing costs on small businesses and consumers.
The full analysis lists 4 implications of this text.
Who stands to gain
U.S. Mint (reduced production costs); Numismatic collectors (exclusive access to limited-edition coins); Digital payment processors and fintech companies (accelerated cashless adoption)