This bill suspends the production of pennies and nickels for 10 years, requires a study on the effects of this suspension, and ensures these coins remain legal tender.
David Schweikert
Representative
AZ-1
This bill suspends the production of pennies and nickels for 10 years, while allowing the Treasury Secretary to continue making them for coin collectors under specific guidelines. It also requires the Comptroller General to study the effects of this suspension, including potential savings and the impact of rounding cash transactions, and report findings to Congress within three years to determine if the suspension should continue, become permanent, or be reversed. Pennies and nickels will remain legal tender during this time.
Penny and Nickel Production Paused for 10 Years: GAO to Study Impact on Taxpayers and Cash Transactions
This bill hits pause on minting new pennies and nickels for the next decade. While it won't affect the coins already in your wallet, it does aim to save taxpayer money and sets up a deep dive into how this change might ripple through everyday transactions.
Cents and Sensibility: What's Changing?
For the next 10 years, the U.S. Mint won't be producing pennies and nickels for general circulation (SEC. 1). Think of it like a temporary retirement for these coins. But, this doesn't mean they're disappearing entirely. Pennies and nickels will remain legal tender. You can still use them for all debts, taxes, and dues (SEC. 1). The bill is clear that it impacts production, not usage.
- Collector's Corner: If you're into coin collecting, don't worry. The Treasury will still make special pennies and nickels just for you. However, these will be sold under specific rules to ensure they cover all production costs, so no taxpayer subsidies for these collector editions (SEC. 1).
The Real-World Rundown
So, how might this play out in your daily life? Imagine buying a coffee and a snack. If the total is $5.53, you'd likely hand over $5.50 in cash, and the remaining amount is not paid. If the total is $5.57, you will likely pay $5.60. This rounding to the nearest ten cents is a key part of the study the Government Accountability Office (GAO) will undertake (SEC. 2).
- The GAO's Deep Dive: Within three years, the GAO will deliver a report to Congress on the effects of this production halt (SEC. 2). They'll look at the actual cost savings and how rounding cash transactions to the nearest dime impacts things. They'll consult with the Treasury, the Mint, and even the IRS to get the full picture (SEC. 2).
The Bigger Picture: Challenges and Considerations
One of the main challenges will be tracking the real impact of rounding on everyday purchases. It will be important to see how it affects different people. The GAO study is crucial here. It's not just about whether the suspension should continue or become permanent; it's about understanding the practical effects on consumers and businesses. The bill is trying to balance cost savings with the potential inconvenience (or even benefit) of simplified cash transactions.