In a previous article, we talked about how the United States half cent was eliminated and why the nation’s large cent was reduced in size and weight to a smaller coin that was more stable and profitable to produce. As we approach the end of the one-cent coin in the United States, we will look upon other times where the cent almost met its end but changes saved it.
A coin of legend in American numismatics is the 1974 aluminum cent. This prototype wasn’t produced without a reason – it was born because it was believed it would be a necessity. In 1972, the cent cost about half a cent in metal and had production costs amounting to about 0.65 cents per coin. The year 1973 saw a perfect economic storm that caused a sharp increase in copper; many factors included the 1973 oil crisis (cost for mining and refining increased); a global industrial boom with manufacturing and home building needs for copper increasing; mining distributions in Chile, Zambia, and the United States causing a reduced output; the devaluation of the United States dollar; and commodity speculation all hitting in 1973. These combined factors caused the price of copper to go from $0.50 per pound in early 1973 to a peak of $1.40 per pound in April 1974 – a 180% price increase. This caused the cent production cost to rise as high as 1.40 cents per coin. By 1975, the price of copper receded down to $0.58 cents per pound, ending the experiment of the aluminium cent. But the United States was once again aware of the commodity volatility in its cents production cost.
This volatility again returned in 1980, with the cost per cent rising to 0.95 cents per coin to produce. Once again, the United States looked for a solution to the cent-cost problem and found one in Germany. West Germany had produced a copper-plated steel coin for their pfenning since 1949, proving the coins were both durable and cheap to produce. While the United States Mint experimented with zinc in 1974, it was found to be problematic for coinage. Copper plating solved these issues making it appear bronze, while saving 80% on the cost of metal. The Coinage Act of 1981, Public Law 97-104 on December 23, 1981, authorized the Treasury to “Change the composition of the one-cent coin to reduce costs.” With no public debate, the law passed quietly and went into effect in July 1982. This would reduce the production cost of the cent from 1.05 cents per coin to 0.60 cents per coin. This resulted in a $50 million dollar annual savings.
The first official attempt to end the United States cent came in 1989, when a bill was introduced to phase out the cent and round to the nearest five cents. However, this bill failed due to an onslaught of zinc and copper industry lobbyists. The next bill would be introduced by Representative Jim Kolbe of Arizona in 2002, but it died in committee. The year 2006 once again saw production and metal costs rise above the face value of the cent, which then cost 1.23 cents apiece to produce. Kolbe once again introduced a bill, H.R. 2528 (Legal Tender Modernization Act), to suspend the production of the cent. Once again, it failed.
In 2010, with the cent now costing over 1.66 cents to produce, Steve Austria of Ohio introduced H.R. 5818 to eliminate the cent and study the cost of producing five-cent coins. No hearings were held, and the bill never went anywhere. In 2013, President Barack Obama publicly supported the ending of the cent but took no action. In 2017, Senators John McCain of Arizona and Mike Enzi introduced S.759 (C.O.I.N.S. Act) to suspend the production of the cent for 10 years and study alternatives, however the bill expired with no hearings. By 2024, the cent cost 2.40 cents per coin just in metal, combined with other manufacturing and distribution costs to bring the cost per unit to about 3.69 cents per coin.
In February 2025, President Donald Trump posted on Truth Social that he was ordering Treasury Secretary Scott Bessent to halt production of the “wasteful” cent. H.R. 3074 The Common Cents Act was introduced by Lisa McClain of Michigan and Robert Garica of California. The act proposes formally ending the production of cents, mandates rounding to the nearest five cents, and explores a zinc-based nickel. The act finds bipartisan political support, something rare in today's politics, with polls reporting between 77% to 84% support in favor of ending the cent among those polled. By 2026, it is expected no production of cents will occur except for numismatic programs.
Currently there are an estimated 114 billion cents in circulation. The coin has virtually no individual purchasing power. The elimination of the cent will save the Treasury about $56 million a year. Since 2006, an estimated $1.1 billion has been lost in production of the cent. With cent production halting, the shift is now leaning toward making five-cent coins, which may see a production increase. However, the debate over the cost of producing coins is also focusing more on the nickel, because that coin also costs more to produce than its face value. In 2024, the five-cent coin saw a unit cost of 13.78 cents per nickel produced. Currently producing the five cent coin is costing a loss of $70 to $90 million per year. Since 2006, the loss since has amounted to $25.4 billion with producing five-cent coins. In the Common Cents Act (H.R. 3074), the nation could see reforms of the five-cent coin or even its phase out by 2027 or 2028.
Whether it be Norway, Australia, New Zealand, Canada, or the United States, history repeats or rhymes. The end of the one-cent coin in the United States is unlikely to play out much differently from how elimination of small-denomination coinage played out in other countries. In fact the silverlining is potentially more collector interest from people nostalgic over the loss of the cent and wanting to preserve the coins for their and future generations to appreciate.