US Treasury Confirms End of Penny Production, Citing Rising Costs

The United States Treasury Department officially announced Thursday that production of one-cent pennies, will end next year. This decision brings to a close the long history of the penny, which has been in use for over two centuries.

President Donald Trump instructed Treasury Secretary Scott Bessent in February to halt penny production, calling the coin “wasteful.” For years, Americans have debated whether the penny remains a practical part of the nation’s currency, with opinions divided on its usefulness and cost.

In January, Elon Musk’s informal Department of Government Efficiency, known as DOGE, spotlighted the cost of penny production in a post on X. First minted in 1793, the penny was among the original coins produced by the US Mint. Over the last decade, however, the cost to make one has nearly tripled, rising from 1.3 cents to 3.69 cents. According to the Treasury, ceasing penny production will immediately save an estimated $56 million annually due to lower material expenses.

Critics argue that producing the zinc and copper coin wastes money and materials. Supporters, however, claim that pennies help keep prices low and are useful for charitable fundraising. With the phase-out, businesses will need to round prices either up or down, a shift first reported by the Wall Street Journal (WSJ). “Confirming the WSJ story, the Treasury has made its final order of penny blanks this month and the United States Mint will continue to manufacture pennies while an inventory of penny blanks exists,” a Treasury spokesperson said.

Countries like Canada eliminated their one-cent coin in 2012, citing rising costs and diminished buying power due to inflation. In the UK, no new coins were minted in 2024, as the decline in cash use has left a sufficient supply in circulation. While the UK government says 1p and 2p coins aren’t being eliminated, several years have passed without the production of new 2p coins.