US Mint Will Stop Producing Pennies

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 cease production of new pennies once its current stock of blank coin discs runs out, a Treasury Department official has 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, and its potential demise comes 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. They are largely useless, people don’t want them, and we can save a lot of money by eliminating the penny.”

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

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

But 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.