Change is coming: Congress moves forward to end penny, as a Tennessee town worries about jobs

USA Today

6 days ago

Change is coming, but it won't be in the form of a penny anymore. However, the demise of the penny could mean the loss of jobs in East Tennessee.
After 233 years of production, the U.S. Treasury Department announced in May that the production of the penny will come to an end, and soon, the only ones available will be pennies currently in circulation. On July 23, the House Financial Services Committee, which oversees banking, insurance and other related matters, advanced a bill dubbed the 'Common Cents Act' by a vote of 35-13. Bring us one step closer to the end of penny minting in the United States.
'The Common Cents Act is about fiscal responsibility and good government,' House Republican Conference Chairwoman Rep. Lisa McClain, R-Michigan, said in a statement. 'Taxpayers shouldn't be footing the bill to produce a coin that loses money every time it's made. It's time to modernize our currency policy and bring some common sense — and Common Cents — to Washington.'
The advancement could also mean the end of work at the Greene County, Tennessee factory where penny blanks for the United States are made.
During the July 23 meeting, Tennessee Republican Rep. John Rose, who sits on the House Financial Services Committee, expressed concerns over the 'Common Cents Act," arguing that eliminating the penny 'without a well crafted plan' to phase it out won't accomplish the goal of 'improving the cost and efficiency of US currency.'
'As it stands, there's been no time provided for states, retailers or consumers to prepare for a penniless economy,' he said. 'We need to do that responsibly and thoughtfully.'
The concerns were short-lived, though, Rose stated he would ultimately vote for the act.
Here's a look at when the penny will be phased out and what could happen to the Greene County factory.
Why is penny production being stopped?
President Donald Trump stated in February that production was going to stop in 2025. Trump's February announcement about halting penny production stated that the effort is a cost-saving measure for the budget.
As the penny is phased out, prices will soon reflect the nickel as the smallest denomination. The change will force companies to change pricing .
Trump has previously stated that the coins were 'wasteful,' arguing that it's pricey to produce them.
Nickels are more expensive than pennies to produce, which could cause other losses in the budget.
How much does it cost to make a penny? A nickel?
More than it is worth.
The currency that is only worth 1 cent costs about 3.7 cents to produce in fiscal year 2024, according to the U.S. Mint's annual report. A nickel costs about 13.8 cents to make. The price to make both coins has been on the rise for almost the last decade.
The U.S. Mint reported an $85.3 million loss in the 2024 fiscal year on the nearly 3.2 billion pennies it produced
Are pennies made in Tennessee?
The blanks used for pennies are produced in East Tennessee at Artazn Zinc in Greene County.
'Save the penny. For those that do not know, every penny starts in Greene County. Save jobs in Greene County!' Jeff Taylor, president and CEO of the Greene County Partnership, posted on social media after the announcement.
Penny blanks have been manufactured in East Tennessee for decades at the business, along with coins for countries around the world, with "over 300 billion coin blanks circulating across 20 countries," according to the company's website.
Taylor and Kevin Morrison, the mayor of Greene County, have argued that ending penny production could cost individuals their jobs.
One group is fighting for the penny to stay and states that its phase-out wouldn't mean saving money.
'In fact, such a move would have a significant negative impact on the U.S. Mint's cost structure. Many overhead expenses at the Mint would remain and would need to be absorbed by other coins, increasing their per-unit costs. Additionally, without the penny, the demand for nickels would rise to fill the gap in small-value transactions,' according to a January news release from Americans for Common Cents, a pro-penny group with Artazn among its backers.
'Since each nickel costs nearly 14 cents to produce, this shift would drive up overall production expenses for the government. Rather than saving money, eliminating the penny would increase and redistribute financial burdens,' the news release states.
When does the production of the penny stop?
The last order for pennies has already been taken by U.S. mints and the Treasury told multiple news outlets that pennies will stop being put into circulation early in 2026, according to the Wall Street Journal, CNN, MSN, and Business Insider.
But the decommissioning of the penny now lies in the hands of the House Rules Committee, which sets terms for how a bill will be debated, amended and voted on by members in the lower chamber.
When it will get to that committee is unclear, though, since the House is out on its month-long summer break.
How many pennies are made each year?
In the 2024 fiscal year, around 3.2 billion pennies were manufactured
Are old pennies worth anything more than 1 cent?
Think that old penny you have in the drawer might be worth something? Well, some are, but most aren't worth more than their face value.
"There are million-dollar pennies, but there are no $100 million pennies," said Donn Pearlman, spokesman for the Professional Numismatists Guild (PNG), a nonprofit organization composed of many of the nation's rare coin experts. "Only a few Lincoln cents dated 1909 to 1958 with the wheat stalks design on the back ("wheat pennies") have sold for $1 million or more."
If you find a 1943 copper Lincoln wheat penny, you might have something. These copper 1 cent pieces were produced accidentally as the U.S. mints were supposed to use zinc to save copper for the World War II effort, said John Feigenbaum, publisher of rare coin price guide Greysheet. The penny is worth some money, but only a few have gone for $1 million.
How can I tell if my pennies, coins are worth anything?
A quick Google search can give you an idea if the coin you have is rare or if it could be worth anything. But if you have questions, you can also reach out to the American Numismatic Association. The nonprofit educational organization is dedicated to educating and encouraging people to study and collect coins and other items related to it.
Beyond doing your own research, the easiest way to see if your coin is worth anything is to get it appraised.
Tennessee has multiple coin appraisers across the state who can take a look at any coins that you may have come across and tell you their potential worth. You can find a list of recommended coin appraisers from the American Numismatic Association at coin-dealer-directory.money.org.
Think you may have something of value? Check out some more tips on what to do at usatoday.com.
USA TODAY contributed to this report.