Senate Passes Bill to End Wasteful Penny Production, Modernize Cash Transactions

The U.S. Senate displayed a rare moment of bipartisan cooperation this week, unanimously approving the Common Cents Act.

The practical legislation would officially end production of the money-losing penny while giving the Treasury Department authority to develop a more cost-effective nickel. Supporters say the measure could save taxpayers millions of dollars and make cash transactions simpler for consumers and small businesses.

The bill, which had already passed the House, moved through the Senate by unanimous consent.

The legislation addresses three long-standing issues with U.S. coinage that have quietly consumed public resources while creating unnecessary complications at checkout counters across the country.

First, the bill formally ends the production of circulating pennies.

The U.S. Mint already struck its final one-cent coins for general circulation last year, although special collectible pennies commemorating America’s 250th anniversary were introduced earlier this year.

Under the new legislation, the Federal Reserve would be required to take steps to minimize any disruptions caused by the remaining supply of pennies.