H.R.1401 - Currency Optimization, Innovation, and National Savings Act of 2025 (119th Congress)
Summary
H.R.1401, the "Currency Optimization, Innovation, and National Savings Act of 2025," proposes to temporarily suspend the production of one-cent coins for a 10-year period. This suspension aims to save taxpayer money, as the cost of producing pennies often exceeds their face value. The bill includes an exception for numismatic collectors, ensuring that pennies will still be produced to meet their demand.
Expected Effects
The primary effect of this bill would be a reduction in government spending related to coin production. It would also likely lead to a decrease in the number of pennies in circulation over time, though existing pennies would remain legal tender. The impact on consumers and businesses is expected to be minimal, as rounding practices would likely adjust to the absence of new pennies.
Potential Benefits
- Potential savings for taxpayers due to reduced coin production costs.
- Streamlining of cash transactions by reducing the need for pennies.
- Focus on producing other denominations of coins that are more frequently used.
- Reduced demand for the raw materials used in penny production.
- Potential for increased efficiency in the financial system.
Potential Disadvantages
- Possible inconvenience for some consumers who prefer to receive exact change.
- Potential for businesses to round prices up, leading to slight price increases.
- Psychological impact of removing a long-standing symbol of currency.
- Potential impact on the zinc and copper mining industries.
- Concerns about the long-term implications of altering the nation's currency system.
Constitutional Alignment
The bill appears to align with the constitutional power granted to Congress in Article I, Section 8, Clause 5, which gives Congress the power to "coin Money, regulate the Value thereof, and of foreign Coin." The bill does not infringe upon any specific constitutional rights or limitations. The decision to suspend production of a particular coin denomination falls within the scope of Congress's authority over monetary policy.
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).