U.S. News
Say Goodbye to the Penny
By Jake Beardslee · May 23, 2025
Treasury Confirms Final Penny Minting as Costs Rise
The U.S. Treasury has confirmed that it has ordered its final batch of coin blanks used to mint the one-cent piece, marking the beginning of the end for the American penny. The decision, first reported by The Wall Street Journal, comes amid rising production costs and renewed efforts by the Trump administration to curb what it deems unnecessary government spending. Adam Nir / Unsplash
Penny Phase-Out Expected to Save $85 Million
The Treasury estimates that eliminating penny production will save taxpayers approximately $85 million annually — a small fraction of the federal government’s $6.8 trillion in 2024 expenditures, but still a symbolic step in ongoing fiscal tightening. Carol M. Highsmit / Wikimedia
Final Pennies Set to Enter Circulation in 2026
According to The Wall Street Journal, the last new pennies will enter circulation in early 2026. Businesses will likely begin rounding prices to the nearest nickel after that. Todd Trapani / Pexels
Senator Calls Penny a Waste of Taxpayer Dollars
“Minting pennies costs the American taxpayer millions every year – nearly four times more than the pennies are worth,” said Sen. Mike Lee (R-Utah), who introduced the "Make Sense Not Cents Act" to formally authorize the halt. “No private business would produce something at a 4x loss. It's time to stop wasting Americans' hard-earned tax dollars making overpriced pennies.” U.S. Senate / Wikimedia
Production Costs for Each Penny Now 3.69 Cents
Currently, each penny costs 3.69 cents to produce — up 20% just in the last year — due to inflation in material and operational costs. While pennies once consisted primarily of copper, they have been made mostly of zinc with copper plating since 1982. cpastrick / Pixabay
Mint Expects Big Savings from Halting Penny Output
According to the U.S. Mint, roughly $56 million of the savings will come from reduced material expenses, with additional savings from facility and labor efficiencies. The Mint has historically devoted a large share of its output to pennies; as recently as 2021, more than half of all U.S. coin production focused on the one-cent coin. United States Mint and Siegel + Gale / Wikimedia
Fed Study Warned Against Sudden Penny Withdrawal
A 2022 Federal Reserve study recommended a gradual phase-out to avoid a sudden rush from the public to redeem the estimated 114 billion pennies currently in circulation. The study forecasted potential long-term savings of up to $100 million. Adam Nir / Unsplash