S.1554 - Make Sense Not Cents Act (119th Congress)
Summary
The "Make Sense Not Cents Act" (S.1554) proposes to amend Title 31 of the United States Code to prohibit the Secretary of the Treasury from minting or issuing 1-cent coins. The bill asserts Congress's sole authority to coin money and regulate its value. It includes technical amendments to the US Code and the Internal Revenue Code to reflect the discontinuation of the penny.
Despite the cessation of minting, the bill explicitly states that existing 1-cent coins will remain legal tender for all debts, taxes, and duties. This ensures a smooth transition without invalidating the existing currency.
The bill was introduced in the Senate on May 1, 2025, by Mr. Merkley and Mr. Lee and referred to the Committee on Banking, Housing, and Urban Affairs.
Expected Effects
If enacted, the primary effect of this bill would be the elimination of the penny from US coinage. This would likely lead to changes in how transactions are rounded, potentially benefiting consumers and businesses.
It would also reduce the cost to the government associated with minting pennies, which currently costs more than their face value. The bill also updates relevant sections of the US Code to reflect the absence of the 1-cent coin.
Potential Benefits
- Cost Savings: Eliminating penny production could save the government money, as the cost to mint pennies often exceeds their face value.
- Transaction Efficiency: Rounding transactions could simplify purchases and potentially save consumers time.
- Resource Conservation: Discontinuing penny production could reduce the demand for the metals used in their production.
- Reduced Clutter: Consumers and businesses would have fewer pennies to handle and store.
- Modernization: Removing an outdated denomination could modernize the US currency system.
Potential Disadvantages
- Psychological Pricing Effects: The elimination of the penny could lead to the end of psychological pricing strategies (e.g., pricing items at $9.99 instead of $10.00), potentially increasing prices.
- Inconvenience for Some: Some consumers may find rounding transactions inconvenient, especially those who prefer to pay with exact change.
- Hoarding Concerns: Some individuals may hoard pennies, believing they will become valuable collectibles.
- Potential for Price Increases: Businesses might round up prices more often than down, leading to a slight increase in overall prices.
- Nostalgia and Tradition: Some may oppose the elimination of the penny due to its historical significance and sentimental value.
Constitutional Alignment
The bill aligns with Article I, Section 8 of the US Constitution, which grants Congress the power to coin money and regulate its value. The discontinuation of a particular denomination falls within this enumerated power.
The bill does not appear to infringe upon any other constitutional provisions or amendments. The provision ensuring existing pennies remain legal tender mitigates potential concerns about impairing contractual obligations.
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).