U.S. House Passes Penny Phaseout Bill as 1-Cent Coin Costs Nearly 4 Times Face Value
Updated
Updated · Long Beach Post · Jul 16
U.S. House Passes Penny Phaseout Bill as 1-Cent Coin Costs Nearly 4 Times Face Value
3 articles · Updated · Long Beach Post · Jul 16
Summary
The bipartisan Common Cents Act cleared the House by voice vote on July 14, sending a plan to end new penny minting to the Senate.
Nearly 4 cents to make each 1-cent coin has driven the push, with the U.S. Mint saying penny production has exceeded face value for a 20th straight fiscal year.
Existing pennies would remain legal tender, while businesses could round cash purchases to the nearest 5 cents; card, mobile and check payments would not change.
One year after enactment, the phaseout would take effect, and the bill also lets Treasury test a lower-cost nickel that still works in vending machines.
Canada, Australia and New Zealand have already eliminated their 1-cent coins, a model backers cite as Congress weighs the measure in the Senate.