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USA Today
3 days ago
- Business
- USA Today
Change is coming: Congress moves forward to end penny, as a Tennessee town worries about jobs
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 Think you may have something of value? Check out some more tips on what to do at USA TODAY contributed to this report.
USA Today
4 days ago
- Business
- USA Today
What's the latest on Trump's plan to end penny production? What to know
WASHINGTON - Republican lawmakers in Congress are forging ahead with President Donald Trump's plan to end the production of pennies, a move that could potentially cost jobs and affect the way businesses handle cash transactions. 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 on July 23. The bill would formalize Trump's February order directing the Treasury Department to halt penny production, and round cash transactions to the nearest five cents. It was introduced by Rep. Lisa McClain, R-Michigan, Rep. Robert Garcia, D-California, Sen. Cynthia Lummis, R-Wyoming and Sen. Kirsten Gillibrand, D-New York, at the end of April. 'The Common Cents Act is about fiscal responsibility and good government,' McClain, the House Republican Conference chairwoman, 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.' With House lawmakers out for their annual one month summer break, and the Senate soon to go on theirs, there won't be much action taken on the bill until after they return. Trump has previously deemed the one-cent coins as 'wasteful,' arguing that it's pricey to produce them. A 2024 annual report from the United States Mint found that the cost of making a penny was 3.69 cents. Here's the latest on the push to end penny production. GOP lawmaker pushes back, then supports bill Republican Tennessee Rep. John Rose, who sits on the House Financial Services Committee, originally expressed concerns over the 'Common Cents Act," but later supported the initiative. Tennessee is home to the nation's sole manufacturer of penny blanks. Blanks are flat metal discs that eventually become coins, according to the U.S. Morrison, the mayor of Greene County, Tennessee, where the blanks are produced, has argued that ending penny production could cost individuals their jobs. In a House Financial Services Committee markup on July 23, Rose argued that eliminating the penny 'without a well crafted plan' to phase out the one-cent coin 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.' However, Rose ultimately said he would vote in favor of the act, after getting reassurance from his colleague that his concerns would be addressed. What are the bill's next steps in Congress? The influential House Rules Committee, which sets terms for how a bill will be debated on, amended and voted on by members in the lower chamber, must take up the bill next. When the bill will go through the committee is still unclear, as House lawmakers have left Washington, D.C., for summer break. The bill does face an uphill battle in the Senate, however, as seven Democrats will need to join Republicans in breaking a 60-vote threshold and advancing it to a final vote (assuming all Republicans support the bill). Republicans have a 53-seat majority in the upper chamber. Gillibrand said in a statement that she's 'optimistic this bill will be passed swiftly in the Senate.' Lummis told USA TODAY that she looks 'forward to continuing our partnership with Senator Gillibrand and the Trump Administration to move the Common Cents Act towards passage in the Senate.' When will the government stop producing pennies? The government made its final order of penny blanks in May − the first step to end the production of the one-cent coin, a spokesperson for the Treasury Department told USA TODAY that month. "The United States Mint will continue to manufacture pennies while an inventory of penny blanks exists," the spokesperson said at the time. It is unclear when the inventory will run out. However, the Louisville Courier Journal reported that the Treasury Department will phase out the production of pennies beginning in early 2026. Contributing: Melina Khan, USA TODAY
The Hindu
23-05-2025
- Business
- The Hindu
Stop making cents: U.S. Mint moves forward with plans to kill penny
The Trump administration says making cents doesn't make sense anymore. The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed on Thursday (May 22, 2025). This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorised to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilised, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States'. Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Mr. Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Mr. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise, simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says, 'There has been an evolution over the past six months that inevitably the production of the penny will be halted'. His group advocates for the U.S. to find ways to reduce the cost of producing nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
Express Tribune
23-05-2025
- Business
- Express Tribune
US Treasury to end penny production by early 2026
Listen to article The US Treasury Department has officially confirmed it will end production of the penny coin by early 2026, marking a significant shift in American currency policy after years of debate over the coin's utility and rising production costs. The move follows a directive from President Donald Trump issued in February 2025, and comes amid growing bipartisan support in Congress to phase out the lowest denomination of US currency. The Treasury has reportedly placed its final order for penny blanks, with officials stating that the US Mint will continue to manufacture the coin only while existing materials last. The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 Once the current inventory is exhausted, no new pennies will enter circulation, although existing coins will remain legal tender and can still be used for purchases. The department estimates that halting production will save American taxpayers $56 million annually. President Trump described the penny as "wasteful," noting that each coin now costs over 3.6 cents to produce—more than three times its face value. In a post on social media, he said, 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Let's rip the waste out of our great nation's budget, even if it's a penny at a time.' The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 In Congress, lawmakers introduced two bipartisan bills this year aimed at permanently ending penny production: the Make Sense Not Cents Act and the Common Cents Act. These measures reflect a broader consensus that the coin's continued production no longer makes economic sense. As a result of the change, retailers and other businesses will begin rounding cash transaction totals to the nearest five cents. Electronic payments, however, will remain unchanged and can still reflect exact amounts. The penny, first introduced in 1793 and bearing President Abraham Lincoln's likeness since 1909, has long been a fixture of American life. But critics argue it is increasingly obsolete in a digital economy and often ends up forgotten in jars and drawers. Supporters, including charitable groups and some economists, argue that the coin is still useful for maintaining price accuracy and supporting donation drives. There are currently around 114 billion pennies in circulation. While the US Mint will continue producing nickels, experts warn this could become more costly. Nickels cost nearly 14 cents each to mint, raising concerns that ending penny production might simply shift financial pressure elsewhere in the coinage system. The United States now joins other nations such as Canada, Australia, and New Zealand, which have already phased out their lowest-denomination coins. Analysts say the success of the policy will depend on how the transition is managed and whether the government can also reduce production costs for more expensive coins like the nickel.
New Indian Express
23-05-2025
- Business
- New Indian Express
Stop making cents: US Mint moves forward with plans to kill the penny
WASHINGTON: The Trump administration says making cents doesn't make sense anymore. The US Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilized, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States.' Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says 'there has been an evolution over the past six months that inevitably the production of the penny will be halted.' His group advocates for the U.S. to find ways to reduce the cost of producing the nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
