U.S. Mint to Stop Producing the Penny: Here's What You Need to Know

 U.S. Mint to Stop Producing the Penny: Here's What You Need to Know

The U.S. Mint is preparing to halt production of the penny, marking the end of an era for America’s smallest coin. The decision, initiated under a directive from the U.S. Treasury Department, aims to cut costs and improve currency efficiency. Once the Mint's final order for penny blanks is fulfilled, no new pennies will be manufactured.

This move comes after years of debate over the penny’s relevance. Despite its nostalgic and symbolic value, producing a single penny now costs nearly four cents. In the 2024 fiscal year alone, this added up to a staggering $85.3 million loss on the 3.2 billion pennies minted. Eliminating the coin is expected to save taxpayers around $56 million annually.

Supporters of the phase-out argue that the penny no longer serves a functional role in the economy. Digital payments have surged, and inflation has significantly reduced the coin’s purchasing power. Still, critics point out that nickels cost even more to produce—nearly 14 cents each—and worry that removing the penny could disrupt pricing or disproportionately affect lower-income communities that rely on cash transactions.

Two bipartisan bills—the “Make Sense Not Cents Act” and the “Common Cents Act”—have been introduced in Congress to formalize the end of penny production. Experts say legislation around price rounding will be critical to ensure a smooth transition.

The penny, first minted in 1792, will remain legal tender even after production ends. With an estimated 114 billion still in circulation, the copper-colored coin will continue to pass through hands for years to come—just not fresh off the Mint’s presses.

Key Takeaways:

• Penny production will officially end once current blank orders are used up

• It costs nearly 4 cents to produce a 1-cent coin

• Estimated taxpayer savings: $56 million per year

• Over 114 billion pennies remain in circulation

• Bills in Congress seek to manage the phase-out responsibly

Is it time to say goodbye to the penny—or should tradition still carry weight in our wallets?