To save taxpayers money by improving the manufacturing and distribution of coins, and for other purposes.

Bill Number

H.R. 1401

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-02-18: Referred to the House Committee on Financial Services.

Last Updated

2025-03-12T08:06:43Z

AI-Generated Summary

Purpose

The Currency Optimization, Innovation, and National Savings Act of 2025 aims to reduce taxpayer costs by suspending the production of one-cent coins (pennies) for a 10-year period, while ensuring existing pennies remain valid currency. It reflects a congressional view that penny production is unprofitable and unnecessary given current supplies.

Key Provisions

• Sense of Congress: Declares that enough pennies have been minted to meet demand, their production results in net losses for taxpayers, and no further production is needed for the next decade.
• Suspension of Production: The Secretary of the Treasury must stop minting new pennies for 10 years starting from the date of enactment, except in limited cases.
• Exception for Collectors: Production continues solely for numismatic (coin-collecting) purposes, with these pennies sold under standard rules for collector items. Sales must generate enough revenue to fully cover production costs, including variable and fixed expenses.
• Legal Tender Status: Existing and previously minted pennies remain valid for all payments, debts, taxes, and duties, regardless of age.

Significant Changes to Existing Law

• Introduces a temporary halt to routine penny minting, overriding ongoing production mandates under current U.S. coinage laws (e.g., those authorizing the U.S. Mint to produce coins as needed for circulation).
• Limits new production to collector items only, with a cost-recovery requirement for those sales, which is a new fiscal constraint not previously specified for pennies.

Potential Impacts

• Government Agencies: The U.S. Treasury and Mint could save significant costs (estimated losses from penny production have historically exceeded $100 million annually due to material expenses like zinc and copper), freeing resources for other priorities.
• Citizens: Everyday cash users may face gradual penny shortages over time, potentially leading to more rounding in transactions (though the bill does not mandate this). Collectors benefit from continued access to new pennies via sales.
• Businesses and Economy: Retailers and banks might adjust handling of small change, possibly reducing administrative burdens but requiring adaptation to lower penny circulation.
• International Relations: No direct impacts, as the bill focuses on domestic coin production.

Main Stakeholders Affected

• Taxpayers and General Public: Benefit from reduced government spending but may experience minor inconveniences in cash-based transactions.
• U.S. Treasury and Mint: Directly responsible for implementing the suspension, with potential operational shifts in manufacturing.
• Numismatic Collectors: Gain exclusive access to newly produced pennies through sales.
• Businesses Handling Cash: Such as retailers and financial institutions, who rely on pennies for exact change.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces the legal tender status of pennies under Article I, Section 8 of the U.S. Constitution (Congress's power to coin money), ensuring no disruption to payment obligations while allowing supply management.
• Constitutional: Aligns with congressional authority over currency without infringing on states' rights or private contracts, as existing coins retain full value.
• Political: Could spark debate on fiscal efficiency versus tradition, with potential for future extensions or eliminations of the penny; it promotes cost-saving measures amid broader budget concerns but leaves open questions about transaction rounding practices not addressed in the bill.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Biggs, Andy [R-AZ-5]

Cosponsors (5)

Rep. Ciscomani, Juan [R-AZ-6], Rep. Moore, Barry [R-AL-1], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Boebert, Lauren [R-CO-4], Rep. Biggs, Sheri [R-SC-3]

Recent Actions

• 2025-02-18: Referred to the House Committee on Financial Services.
• 2025-02-18: Introduced in House
• 2025-02-18: Introduced in House

Bill Versions

• Currency Optimization, Innovation, and National Savings Act of 2025 — issued 2025-02-18 — PDF (3 pages)