Treasury to Phase Out Production of Pennies

     The U.S. Treasury Department announced Thursday that it will begin phasing out production of the penny, marking the end of an era for a coin that has been in circulation since the 1790s. The decision comes after years of debate over the rising costs of minting the one-cent coin, which now far exceed its face value.

     The Treasury has placed its final order for penny blanks—the metal discs used to produce the coins—and expects the U.S. Mint to continue manufacturing pennies only until the current supply runs out. Officials anticipate that the last new pennies will enter circulation by early 2026. Once the remaining blanks are used, the Mint will halt production, and no new pennies will be issued.

     The move is expected to save the federal government approximately $56 million annually in material and manufacturing costs. According to the U.S. Mint, the cost of producing a single penny reached 3.7 cents in 2024, driven largely by the rising price of zinc, the primary metal in modern pennies. This means the government has been spending nearly four times the coin’s value to keep it in circulation.

     President Donald Trump, who directed the Treasury to end penny production earlier this year, described the coin as wasteful, noting that “for far too long the United States has minted pennies which literally cost us more than 2 cents.” The administration’s decision follows similar calls from lawmakers across party lines, who have introduced legislation to formally discontinue the penny.

     As the supply of pennies dwindles, businesses are expected to begin rounding cash transactions to the nearest nickel, a practice already common in countries that have eliminated their lowest-denomination coins. Consumers will still be able to use existing pennies for purchases, but no new coins will be added to the economy.

     The penny’s retirement closes a chapter in American monetary history that began with the first U.S. Mint in 1792. While the coin’s coppery appearance has long been a fixture in pockets and cash registers, its continued production had become a symbol of government inefficiency in the face of changing economic realities. With the phase-out now underway, the penny will soon join other discontinued denominations as a relic of the nation’s financial past.