H.R.1270 - To suspend the production of the penny and nickel, to require the Comptroller General of the United States to carry out a study on pennies and nickels, and for other purposes. (119th Congress)
Summary
H.R.1270 proposes to temporarily suspend the production of pennies and nickels for a 10-year period, with an exception for numismatic collectors. It also mandates a study by the Comptroller General on the effects of this suspension. The study will assess whether the suspension should remain, be made permanent, or be reversed, considering net savings and the impact of rounding cash purchases.
Expected Effects
The bill aims to save taxpayer money by halting the production of low-value coins. The study will provide data to inform future decisions about the production of pennies and nickels. The practical effect would be a reduction in the number of pennies and nickels entering circulation, potentially leading to more rounding of cash transactions.
Potential Benefits
- Potential cost savings for the government due to reduced production.
- A comprehensive study to inform future policy decisions regarding coin production.
- Continued availability of pennies and nickels for collectors.
- Simplification of cash transactions through increased rounding.
- Reduced demand for raw materials used in coin production.
Most Benefited Areas:
Potential Disadvantages
- Potential inconvenience for consumers who prefer exact change.
- Possible negative impact on businesses that rely on pennies and nickels for pricing.
- The study itself will incur costs.
- Psychological resistance to the disappearance of familiar currency.
- Potential for unintended consequences related to rounding practices.
Constitutional Alignment
The bill appears to align with the constitutional power of Congress to coin money and regulate its value (Article I, Section 8, Clause 5). The temporary suspension of production and the study do not seem to infringe on any specific constitutional rights. The bill explicitly states that pennies and nickels remain legal tender, which maintains their constitutional status as currency.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).