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Date: 24-may-2025 | By: Nuztrend Team
The U.S. Treasury Department has officially announced the cessation of penny production, placing its final order for penny blanks this month. The U.S. Mint will continue to produce pennies until the current supply of blanks is exhausted, which is anticipated to occur by early 2026. This decision marks the end of the one-cent coin's production, a move that has been in discussion for years due to the rising costs associated with minting the coin.
Each penny currently costs approximately 3.7 cents to produce, nearly four times its face value. In 2024, the U.S. Mint spent over $85 million to produce approximately 3.17 billion pennies. The escalating costs, driven by increased prices of raw materials like zinc and copper, have made the penny economically unfeasible to continue producing. The decision to halt production is expected to save taxpayers about $56 million annually.
President Donald Trump initiated the move to end penny production, citing the coin's costliness and limited utility. The administration's directive aligns with bipartisan legislative efforts, including the introduction of bills such as the "Common Cents Act," which aims to eliminate the penny and round cash transactions to the nearest five cents. Public opinion has largely favored discontinuing the penny, with surveys indicating broad support for phasing out the coin.
Despite the cessation of new penny production, existing pennies will remain legal tender and can continue to be used in transactions. However, businesses may begin rounding cash transactions to the nearest five cents, similar to practices in countries like Canada. This change is expected to streamline transactions and reduce the accumulation of low-value coins. State and local governments are anticipated to provide guidance on implementing these changes to ensure consistent practices across the country.
The United States is following a global trend, as several countries have previously discontinued their lowest-denomination coins. Canada ceased production of its penny in 2012, citing similar economic reasons. The U.S. penny, first minted in 1793 and featuring President Abraham Lincoln since 1909, has been a staple of American currency for over two centuries. Its retirement signifies a significant shift in the nation's approach to coinage and currency efficiency.
With the penny's retirement, discussions are now turning to the future of other coins, particularly the nickel, which also incurs production costs exceeding its face value. The U.S. Treasury Department is exploring options to reduce the cost of producing the nickel, including potential changes to its composition. As the nation moves towards a more efficient and modern currency system, the elimination of the penny represents a significant step in that direction.
“The end of penny production reflects a broader effort to modernize the U.S. currency system and eliminate inefficiencies,” said a spokesperson for the U.S. Treasury Department.
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