End of an era in the US: The penny coin is sent to the dustbin of history

The US House of Representatives voted unanimously to eliminate the production of the penny coin and to round cash transactions to the nearest five cents. The move, expected to save $56 million annually, comes amid minting costs three times the coin's value. Existing coins will remain legal tender.

The US House of Representatives voted unanimously in favor of a bill that would eliminate the production of the penny, the smallest coin in circulation, after 232 years of use. The bill, known as the "Common Cents Act," stipulates that the US Treasury will be barred from minting new pennies, except for collector coins. Additionally, it establishes a framework for rounding cash transactions to the nearest five cents, aiming to completely eliminate the need for these coins. An exception will be cash wages, which will be rounded up if the amount is not divisible by five cents. Existing pennies will remain legal tender. The move comes amid the high minting costs of the penny, which in 2025 stood at more than three times its face value. The Treasury Department estimated the move would result in immediate annual savings of $56 million. The bill was led by House Republican Conference Chair Lisa McClain and Congressman Robert Garcia, and also includes a provision allowing the US Mint to produce five-cent coins from cheaper materials. Congress will oversee disruptions the new rule may cause to citizens and will instruct the Treasury to examine its impact on low-income populations, elderly consumers, and unbanked individuals. US President Donald Trump is expected to sign the bill into law.