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6d ago

U.S. Treasury to End Penny Production After 230 Years

The decision, initiated by President Trump, will save $56 million annually as the cost of minting each penny rose to 3.69 cents.

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

  • The U.S. Treasury has placed its final order for penny blanks, with production expected to cease by early 2026 once current inventory is depleted.
  • President Trump directed the halt in February 2025, citing the penny's high production cost and inefficiency as wasteful spending.
  • The phase-out will save taxpayers $56 million annually in material costs, with additional savings anticipated from reduced facility usage.
  • Cash transactions will shift to rounding prices to the nearest nickel, following international models like Canada’s penny elimination in 2012.
  • While the penny remains legal tender, its discontinuation revives debates over the cost of other coins, such as the nickel, which costs 13.8 cents to produce.