The federal government has officially made the first step to end the production of pennies.

The end of penny production marks a change in a 233 year tradition, as the penny was one of the first coins made after the U.S. Mint was established in 1792

The federal government has officially taken the first step to end the production of pennies.

A spokesperson for the Treasury Department confirmed to USA TODAY that the government recently made its final order of penny blanks, flat metal discs that become coins. The United States Mint will continue to produce coins while the inventory lasts, but after the supply runs out of blanks, the production of United States pennies will end.

Here's what to know about using pennies moving forward.

Why is the government discontinuing pennies?

Back in February, President Donald Trump ordered the Treasury to stop minting pennies because their production cost exceeds their value.

"For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" Trump wrote in a February post on Truth Social. "I have instructed my Secretary of the US Treasury to stop producing new pennies."

Elon Musk, head of Trump's Department of Government Efficiency, said on X in January that penny production in fiscal year 2023 cost taxpayers more than $179 million.

According to the 2024 U.S. Mint report, it took 3.7 cents to produce and distribute one penny in fiscal year 2024 - meaning the government loses nearly three cents on every penny it mints. The 2024 cost was up by 20% from the previous year, partly due to rising costs of metals like zinc and copper.

Can you still use pennies?

Yes. Even after the government stops producing pennies, existing ones will remain legal tender.

However, retailers may choose to round cash transactions to the nearest five cents as the penny supply dwindles, as eventually, stores would not be able to get new rolls of pennies from their banks. While a bipartisan group of lawmakers formally introduced the rounding idea under The Common Cents Act on April 30, the decision of if and when to round transactions currently rests with the specific retailer rather than government policy.

Those who do not want to use their existing pennies can exchange coins for cash at a bank, credit union or coin-exchange kiosk.

When will pennies be out of circulation?

It is unclear how much longer the government will mint pennies before they run out of blanks. Additionally, there is an estimated 114 billion pennies currently in circulation, meaning that it will take a while before pennies are phased out of everyday use.

What should I do if I have pennies I think are valuable?

While it is unlikely for a penny to be worth millions of dollars, some pennies are more valuable than others.

The most valuable pennies are "wheat pennies," pennies from 1909-1958 with stalks of wheat encircling the "One Cent" text on the back of the coin. Most wheat pennies are worth a few cents, but depending on the condition and year of minting, they may be worth thousands. 1943 copper Lincoln wheat pennies, specifically, are heating up in value and can go for $100k-250k, according to rare coin expert John Feigenbaum.

If you think your pennies may be worth something, you can assess potential value through various apps or books like "The 2026 Red Book: A Guide Book of United States Coins". Coins can also be authenticated at their value, just as jewelry is, from several services, including CAC, Numismatic Guaranty Company and Professional Coin Grading Service.

Daniel de Visé, Melina Khan and Mike Snider of USA TODAY contributed to this report.