Why this question matters and who actually acts on coinage
The question who decided to stop making pennies usually arises from the cost of producing the one-cent coin, which has exceeded one cent for many years. The short answer is that no one has decided to stop making pennies yet; the United States continues to produce them, but ongoing debates involve legal authority, executive leadership, and legislative options. This guide explains the roles of the U.S. Mint, the Treasury, and Congress, and how decisions about the penny are made in practice.
The legal authority for coinage
Under U.S. law, the power to mint coins rests with the federal government and is executed by specific agencies. Key points include:
- The Coinage Act of 1792, as amended, grants authority to produce U.S. coinage.
- The Secretary of the Treasury delegates production to the U.S. Mint, an bureau within the Department of the Treasury.
- Congress sets the denominations and specifications of coins through legislation.
Because Congress determines what coins exist and how they are made, any decision to stop producing the penny would ultimately require legislative action, even if the Mint or the Treasury recommends changes.
Mint’s operational role
The U.S. Mint manufactures coins according to law and demand from Federal Reserve Banks. It does not unilaterally decide to discontinue denominations; it follows statutory instructions and Treasury policy.
The role of the Department of the Treasury
The Secretary of the Treasury oversees the Mint and can influence coinage policy through regulations and executive direction. However, the Treasury cannot change coin denominations on its own; it must act within the framework set by Congress. In practice, the administration and relevant departments may advocate for or against changes, but formal changes to coinage require legislation.
Congress sets the rules
Because only Congress can amend laws governing U.S. coinage, proposals to discontinue the penny must be introduced as legislation. Historical attempts include bills to phase out the penny or make it opt-out rather than opt-in. These efforts have not succeeded, and the penny remains legal tender for all debts, public charges, taxes, and dues. No current law has passed to eliminate the one-cent coin.
Key actors in congressional action
- Members of the House and Senate who sponsor relevant bills.
- Committees with jurisdiction over financial matters.
- The administration, which may support or oppose legislative proposals.
Arguments for and against the penny
Debates about the penny often focus on economics, symbolism, and logistics. Understanding these perspectives helps clarify why the question of stopping the penny recurs.
| Perspective | Key points | Source context |
|---|---|---|
| Cost of production | Mint’s unit cost exceeds face value; taxpayer subsidies for seigniorage loss. | U.S. Mint annual reports and GAO summaries. |
| Economic impact | Small price rounding effects; minimal impact on most transactions in studies. | Academic analyses and Federal Reserve research. |
| Consumer familiarity | Cash users and cash-dependent populations may rely on pennies. | Surveys from retailers and advocacy groups. |
| Vending and machines | Older machines may require pennies; transition costs exist for changes. | Industry reports and manufacturer guidance. |
Status of the penny today
As of now, the U.S. Mint continues to produce pennies, and the Treasury maintains that the coin remains legal tender. No executive order or Treasury directive has halted production. The question is not who decided to stop making pennies, because no such final decision has been implemented, but rather whether future legislation could change that. If a halt were to occur, it would require an act of Congress and corresponding Treasury rules.
Addressing common confusion
Several points generate confusion, including rumors of imminent elimination, misunderstanding of Treasury authority, or conflation with other countries’ decisions. It is important to distinguish between proposals, recommendations, and law. Rumors that the Mint or Treasury has independently ended production are inaccurate; current policy keeps the penny in circulation unless lawmakers change it.
- The Mint produces pennies under legal mandate, not executive caprice.
- Treasury leadership can recommend changes but cannot abolish a denomination alone.
- Congress must act to alter the legal status of the penny.
What would it take to stop the penny
For the United States to stop minting pennies, several steps would typically align: a clear policy goal, legislative passage, budget processes to manage seigniorage and public handling, and operational guidance for banks and retailers. The timeline and specifics would depend on the chosen approach, whether immediate abolition or a phase-out. Until such measures are enacted, the status quo remains unchanged.
Pathways often discussed
- A bill to eliminate the penny and codify rounding rules.
- A transition period to allow adaptation by consumers and businesses.
- Measures to address the fiscal effects of lost seigniorage.
The bigger picture for U.S. coinage
Decisions about the penny sit within broader questions about cash, digital payments, and currency efficiency. The United States retains small denominations while many other economies have reduced or eliminated low-value coins. Observers weigh tradition, cost, convenience, and equity when discussing the future of the penny.
Bottom line: who is in charge of the decision
To directly answer who decided to stop making pennies: as of this writing, no such decision has been finalized. The U.S. Mint produces pennies under law; the Treasury oversees coinage implementation; and Congress holds the power to change the legal framework. Anyone claiming a single person or entity unilaterally stopped production is not reflecting current legal and institutional reality. Any future change would result from a deliberate legislative process, not an executive or operational decision alone.