The humble penny, a symbol of American commerce for centuries, is finally being put to rest. In a rare display of bipartisan unity, the U.S. House of Representatives has decisively voted to permanently eliminate the 1-cent coin, sending it to the "ash heap of history" and endorsing a move first spearheaded by President Donald Trump's administration.
This unanimous decision marks a victory for fiscal common sense. The bipartisan Common Cents Act ensures that future administrations cannot reverse course on a practical decision already initiated when the U.S. Mint, under President Trump’s direction, halted penny production in November 2025 after 232 years of circulation. Now, Congress is making that wise, cost-saving measure a permanent fixture.
For years, minting pennies has been a financial drain, with production costs soaring to more than three times the coin's actual value. By 2025, this wasteful expenditure was undeniable, leading the Treasury to project an immediate annual savings of $56 million—money that can now be put to better use for American taxpayers.
The new legislation doesn't just block the Treasury from minting new pennies (except for collector coins); it also establishes a straightforward framework for cash transactions to be rounded to the nearest 5 cents. This simple adjustment will effectively eliminate the need for pennies in everyday commerce, streamlining transactions and removing a costly nuisance.
To ensure fairness, the bill includes a sensible exception: cash wages will be rounded upwards if the total isn't divisible by 5 cents. Importantly, existing pennies will remain legal tender, preventing any unnecessary disruption for Americans who still hold them.
Signage at the memorial site of the "funeral for the penny," months after U.S. President Donald Trump's administration ordered the Treasury Department to halt production of the coins, at the Lincoln Memorial in Washington, D.C., U.S., December 20, 2025. (Annabelle Gordon/Reuters)
This crucial legislation was championed by House GOP Conference Chair Lisa McClain, R-Mich., with bipartisan support from Rep. Robert Garcia, D-Calif. McClain previously led a successful bill directing the federal government to stop minting the penny, proving the enduring need for this common-sense reform. This new act expands upon that initial effort, providing a complete solution to the penny problem.
Beyond the penny, the bill also authorizes the U.S. Mint to produce nickels from more cost-effective materials, another step towards fiscal responsibility. Furthermore, Congress has wisely included a provision to monitor the new rule's impact, directing the Treasury to examine its effects on vulnerable groups, including low-income people, older consumers, and the debanked, ensuring a smooth transition for all Americans.
The permanent removal of the penny is more than just a minor currency adjustment; it’s a clear win for common sense, fiscal responsibility, and the America First principle of cutting wasteful government spending. It builds on the groundwork laid by President Trump and signals a collective effort to streamline our economy, save taxpayer dollars, and simplify everyday life for hardworking Americans. Finally, a government action that just makes sense.
