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.
Summary
HB1270 would direct the Secretary of the Treasury to stop producing circulating one-cent and five-cent coins for a 10-year period after enactment, while preserving production of those denominations for numismatic collectors. The bill specifies that collector coins must be sold under existing rules for numismatic coins and that their sale must cover the full cost of production, including an allocated share of fixed costs.
The measure also states that pennies and nickels would remain legal tender for all debts, taxes, public charges, and duties, even if production is suspended. In addition, the bill requires the Comptroller General, in consultation with Treasury, the Mint, and the IRS, to study the effects of the suspension and report to congressional budget and financial committees within three years, including whether production should remain suspended, be permanently ended, or be resumed, and the fiscal effects of rounding cash transactions to the nearest ten cents.
Impact
If enacted, the bill would temporarily change federal coinage policy by halting the minting of circulating pennies and nickels, while leaving their legal-tender status unchanged. It would affect the Department of the Treasury and the U.S. Mint directly, and would require the Government Accountability Office to evaluate cost savings and consumer effects, especially rounding practices in cash purchases. The bill does not repeal any existing legal-tender laws, but it would suspend production authority for these denominations for the covered period.
Sentiment
There is no recorded committee transcript or vote history in the provided materials, so no formal legislative sentiment can be inferred from debate or roll call. Based on the bill text, the measure appears framed as a cost-saving and efficiency proposal, with an emphasis on reducing production expenses and studying whether the suspension should become permanent. The absence of recorded opposition or support in the provided context means the overall sentiment is best characterized as unknown from the available record.
Contention
The main policy questions raised by the bill are whether eliminating circulating pennies and nickels would actually save money, how consumers and businesses would handle cash rounding, and whether the suspension should later become permanent. Potential points of contention include the impact on low-value cash transactions, the continued legal-tender status of the coins despite halted production, and whether collector-only production is an appropriate exception. Because no committee discussion or votes are provided, it is not possible to identify specific lawmakers or groups taking positions on these issues from the supplied record.