US Mint Will Stop Producing New Pennies Once Current Stock of Blank Coin Discs Runs Out

In a historic shift that could mark the end of a centuries-old staple of American pocket change, the US Mint will stop producing new pennies

The US Mint will halt production of new pennies once its current stock of blank coin discs runs out, a Treasury Department official told the Associated Press.

The move follows a sharp spike in production costs. The Treasury says it now costs nearly 4 cents to make a single penny, with total annual savings from halting production expected to hit $56 million.

First minted in 1793, the penny has been part of American history for over 230 years.

The decision, while long discussed, gained momentum after President Donald Trump announced his intention to eliminate the coin earlier this year.

“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump posted on Truth Social in February.

“I have instructed my Secretary of the U.S. Treasury to stop producing new pennies. The mint will continue to use up the existing penny blank inventory, and the changeover will be seamless.”

There are still an estimated 114 billion pennies in circulation - worth $1.14 billion - but Treasury officials say they are vastly underutilized and rarely used in daily transactions.

Despite being the most produced coin in the US Mint’s inventory - accounting for over 3.2 billion units minted last year - the penny has faced growing scrutiny over its poor return on investment and limited usefulness. By comparison, even the nickel, which costs nearly 14 cents to mint, has drawn criticism for its inefficiency.

However, the penny has its defenders. Supporters argue it’s still useful in charity drives, price rounding, and holds a certain nostalgic value. They also note that it represents a more modest production loss than higher-value coins.

Congress, which controls the specifications of US coinage, has not yet passed legislation to permanently kill the penny. But two bipartisan bills to do so were introduced earlier this year.

One bill, named the "Pennies for Paychecks Act," was filed in March by Sens. Bill Hagerty, R-Tenn., and Mark Warner, D-Va., while the other, named the "Coin Production Enhancement Act," was filed in January by Reps. Steve Scalise, R-La., and Jim Cooper, D-Tenn.

The legislation would also require the Federal Reserve to remove any unusable or damaged pennies from circulation.

The legislation comes as the US is facing a severe coin shortage, with many bank branches and businesses running out of common coins for customer transactions.

According to the American Bankers Association, nearly 80 percent of bank branches reported having no more nickels in March, while over 70 percent had no more dimes or quarters.

The coin shortage is being attributed to the closure of schools and businesses during the COVID-19 pandemic, which disrupted the normal flow of coins in small-value transactions.

Under US law, the Treasury Secretary is empowered to mint and issue coins “in amounts the secretary decides are necessary” to meet the country’s needs - a clause now being used to phase out the penny.