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yesterday

U.S. Treasury Takes Final Steps to End Penny Production

The Treasury Department has placed its last order for penny blanks, halting new production by early 2026 to save $56 million annually.

One-cent U.S. coins known as the penny are shown in this illustration picture, after U.S. President Trump informed on his Truth Social media account that he instructed the Secretary of the US Treasury to stop producing new pennies, February 11, 2025. REUTERS/Mike Blake/File Photo
FILE - Freshly-made pennies sit in a bin at the U.S. Mint in Denver on Aug. 15, 2007. (AP Photo/David Zalubowski, File)
The US Treasury Department plans to discontinue production of new pennies starting early in 2026.

Overview

  • President Trump directed the Treasury in February 2025 to end penny production due to its high cost, which has risen to 3.69 cents per coin.
  • The U.S. Mint will cease producing pennies once its current supply of blanks is exhausted, with new pennies expected to leave circulation by early next year.
  • Businesses will need to round cash transactions to the nearest nickel as the penny is phased out, though existing pennies will remain legal tender.
  • The Treasury estimates annual savings of $56 million from reduced material costs, with additional savings anticipated from operational efficiencies.
  • While the move has bipartisan support, critics argue it could increase nickel production costs and disproportionately impact cash-reliant consumers.