Republican leaders of the U.S. House Committee on Financial Services sent a letter to Federal Reserve Chair Jerome Powell urging a cautious approach to the Federal Reserve’s role in recirculating existing pennies following the administration’s decision to halt penny production. The lawmakers asked the Federal Reserve to assess whether reopening more locations for penny deposits and orders would help alleviate current shortages and support continued cash usage. The letter supports President Trump’s direction to the U.S. Mint to stop producing pennies, citing a 2024 unit cost of 3.68 cents and an estimated USD 85 million loss to the U.S. Department of the Treasury. It points to H.R. 3074, the Common Cents Act, which passed out of the committee on July 23, 2025 on a bipartisan basis, as a way to provide clear rounding guidance for retailers and banks and reduce penny demand. The members also criticise the Federal Reserve’s recent decisions to cease accepting penny deposits or orders at a substantial majority of coin terminal locations, arguing this has impeded circulation despite estimates that nearly 300 billion pennies already in circulation should be sufficient for commerce and has increased costs and operational frictions for retailers, financial institutions, and consumers.
U.S. Financial Services Committee 2025-12-22
U.S. House Committee on Financial Services Republicans urge the Federal Reserve to reopen coin terminals to recirculate existing pennies
Republican leaders of the U.S. House Committee on Financial Services urged Federal Reserve Chair Jerome Powell to reconsider the Federal Reserve's role in penny recirculation after halting penny production. They highlighted financial losses and supported the Common Cents Act for rounding guidance to reduce demand. The letter criticized the Federal Reserve's decision to stop accepting penny deposits at most locations, citing increased costs and operational challenges despite nearly 300 billion pennies in circulation.