GOP Lawmakers Tell Fed: Don’t Mint New Pennies, But Keep Them Circulating / Fresh Today / CUToday.info

WASHINGTON—A group of senior House Republicans has urged Federal Reserve Chair Jerome Powell to reconsider recent steps limiting penny circulation, even as they voiced support for President Trump’s decision to halt the production of new pennies.

In a Dec. 22 letter, the lawmakers said stopping penny minting would save taxpayer money and reduce inefficiencies in cash transactions, noting that each penny cost nearly four cents to produce in 2024, resulting in tens of millions of dollars in losses for the Treasury.

The lawmakers pointed to bipartisan momentum in Congress to address the issue legislatively. They highlighted the Common Cents Act (H.R. 3074), which cleared the House Financial Services Committee earlier this year, as a way to provide clear national guidance on rounding rules for cash transactions. Such clarity, they argued, would help retailers and banks apply consistent practices, reduce legal uncertainty, and preserve consumer confidence in cash payments..

At the same time, the letter raised concerns about Federal Reserve actions that have reduced the number of coin terminal locations accepting penny deposits and orders. While acknowledging that private armored carriers can still process pennies from banks’ own inventories, the lawmakers said this is not a practical solution, as financial institutions are increasingly reluctant to part with their limited penny supplies amid uncertainty about future access..

The lawmakers warned that restricting penny deposits could unnecessarily disrupt coin circulation, even though nearly 300 billion pennies remain in circulation nationwide. They urged the Fed to pause further terminal closures and consider reopening more locations to allow pennies to re-enter the system, arguing that current shortages are imposing costs on retailers, financial institutions, and families and could undermine the continued viability of cash as a payment option.