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HR 1401119th CongressIn Committee

Currency Optimization, Innovation, and National Savings Act of 2025

Introduced: Feb 18, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Currency Optimization, Innovation, and National Savings Act of 2025 (H.R. 1401) would save taxpayer money by suspending the production of the one-cent coin (the penny) for 10 years after enactment. The bill allows the U.S. Treasury to continue producing pennies only to satisfy the needs of coin collectors (numismatic purposes), with such coins sold under existing rules for collector coins. Revenue from selling these collector pennies would be restricted to cover production costs, ensuring no net profit or loss to the government from these sales. Importantly, the penny would remain legal tender for all debts and obligations regardless of minting status. The bill includes a sense-of-the-Congress statement that current penny demand is already met and further production would be financially wasteful.

Key Points

  • 1Sense of Congress: Acknowledges that enough one-cent coins exist to meet demand and that producing more pennies costs taxpayers money.
  • 2Temporary Suspension: Requires the Secretary of the Treasury to stop producing new one-cent coins for 10 years from enactment, with limited exceptions.
  • 3Numismatic Exception: Penny production can continue solely to meet needs of coin collectors, not general circulation.
  • 4Sale and Accounting: Collector pennies produced under the exception must be sold under existing collector-coin rules; net receipts must equal total production costs (including variable costs and a share of fixed costs).
  • 5Legal Tender Status: Despite suspension of general production, one-cent coins remain legal tender for all debts, taxes, charges, and duties, regardless of when minted.

Impact Areas

Primary group/area affected- U.S. Mint operations and Treasury spending: potential savings from reduced production costs; shifts in manufacturing planning and distribution of coin supply.- Taxpayers and the federal budget: potential reduction in annual costs associated with penny production.- Coin-collecting community: continued creation of pennies for numismatic purposes, with market dynamics governed by collector coin rules.Secondary group/area affected- Businesses, banks, and cash handlers: adjustments in cash handling and pricing practices if the penny is less used in general circulation, though pennies would still be legal tender.- Consumers: potential changes in rounding debates and pricing strategies if pennies become less common in everyday transactions; however, legal tender status would still apply.Additional impacts- Market dynamics for pennies: collector coin sales to cover production costs could influence minting schedules and numismatic market activity.- Broader monetary policy signaling: reinforces a move toward cost-saving measures in coin production without altering legal tender or the basic currency framework.- Implementation risk: effectiveness depends on enactment and Treasury implementation of the suspension, collector coin sales, and accounting for production costs.
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