ABA Backs Bill to End Penny Production
Commentary by Steven Lofchie
The American Bankers Association urged Congress to pass a bill that would stop new penny production and round cash payments to the nearest nickel.
The ABA wrote to House Speaker Mike Johnson and Minority Leader Hakeem Jeffries in support of H.R. 3074, the Common Cents Act. (Representatives Lisa McClain and Robert Garcia lead the bill.)
The bill would: (i) direct the Treasury to stop making new pennies, (ii) round cash payments (but not credit cards or automated payments) to the nearest nickel, and (iii) direct the Federal Reserve to produce a report on how it will handle pennies that banks still hold on deposit.
In support of the bill the ABA pointed out that pennies cost more to make and handle than they are worth.
Commentary
This is so overdue. While we are on the topic, it's time to get rid of nickels and dimes. According to Google, a penny in 1800 is the equivalent of more than a quarter today.