Make Sense Not Cents Act
- Bill Number
- S. 1554
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-05-01: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-05-21T12:02:59Z
AI-Generated Summary
Purpose of the Legislation
The "Make Sense Not Cents Act" aims to end the production of new 1-cent coins (commonly known as pennies) by prohibiting the U.S. Department of the Treasury from minting or issuing them. It reflects Congress's view that it alone has the authority to create and regulate money, seeking to modernize U.S. currency by eliminating the least valuable denomination.
Key Provisions
- Prohibition on Minting: The Secretary of the Treasury is barred from producing or distributing any new 1-cent coins.
- Sense of Congress: Affirms that Congress holds exclusive constitutional power over coining money and managing currency.
- Legal Tender Status: Existing 1-cent coins remain valid as legal tender (meaning they can be used to pay debts, taxes, and other obligations) regardless of their minting date.
- Technical Amendments: Updates various sections of U.S. law to remove references to 1-cent coins, including:
- Revisions to Title 31 of the U.S. Code (which governs money and finance), such as striking out descriptions of the penny in coin specifications and adjusting related subsections.
- Changes to the Internal Revenue Code to align tax-related provisions with the new coin lineup.
Significant Changes to Existing Law
- Removes the 1-cent coin from the list of coins the U.S. Mint is authorized to produce under current statutes (e.g., eliminating paragraph (6) in Section 5112(a) of Title 31, which describes the penny's composition and design).
- Eliminates procedural language in laws about minting, issuing, and valuing pennies, while preserving their status as legal tender.
- These changes streamline federal coinage laws but do not affect the circulation or acceptance of pennies already in use.
Potential Impacts
- On Government Agencies: The U.S. Mint and Treasury could save significant costs (estimated in billions over time) by halting penny production, which has been more expensive to make than their face value due to metal costs. This might redirect resources to other coin denominations.
- On Citizens and Businesses: Everyday transactions could shift toward rounding to the nearest 5 cents at checkout (though not mandated), potentially simplifying cash handling for retailers and reducing small change accumulation for consumers. No immediate impact on existing pennies in circulation.
- On International Relations: Minimal direct effects, though it could subtly influence U.S. currency's global perception as more efficient.
Main Stakeholders Affected
- U.S. Treasury and Mint: Directly responsible for implementation; benefits from cost savings but must manage the transition.
- Businesses and Retailers: Affected by changes in handling cash transactions; may need to adjust point-of-sale systems.
- Consumers: Everyday users of cash who deal with pennies; could see less clutter from low-value coins but might face minor inconveniences in exact change scenarios.
- Coin Collectors and Numismatists: Last minted pennies could become collectibles, potentially increasing their value.
- Congress and Taxpayers: Gains oversight reinforcement and fiscal efficiency.
Notable Legal, Constitutional, or Political Implications
- Constitutional: Reinforces Article I, Section 8 of the U.S. Constitution, which grants Congress exclusive power "to coin Money [and] regulate the Value thereof," by explicitly curbing executive branch actions on currency.
- Legal: Maintains continuity by not devaluing or demonetizing existing pennies, avoiding potential challenges under laws requiring legal tender to be accepted. Amendments ensure no disruptions in tax or financial reporting tied to coins.
- Political: Bipartisan sponsorship (by Senators Merkley, a Democrat, and Lee, a Republican) highlights rare consensus on fiscal reform; could set precedent for reviewing other low-value or costly currency elements, though it might spark debates on government overreach in everyday economics.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-05-01: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-05-01: Introduced in Senate
Bill Versions
- Make Sense Not Cents Act — issued 2025-05-01 — PDF (3 pages)