The U.S. Treasury Department announces it will begin winding down production of the penny

The penny will remain legal tender and will still be accepted at retailers nationwide, but its long-term phaseout marks the end of an era

The U.S. Treasury Department has begun winding down production of the penny, bringing to an end more than 230 years of minting the 1-cent coin, officials announced Wednesday.

The penny will remain legal tender and will still be accepted at retailers. But its long-term phaseout marks the end of an era for the copper-colored coin amid growing concerns over the cost of production and declining consumer use.

There are an estimated 114 billion pennies currently in circulation, many of which are being stored away in coin jars, junk drawers or forgotten containers, according to the Treasury. Despite the vast supply, the coins are "severely underutilized," officials said.

President Donald Trump has ordered a halt in production of the penny, citing the coin's inefficiency. It costs nearly 3 cents to produce each penny, well above its face value. The government is also losing nearly 9 cents for every nickel minted, raising concerns that eliminating the penny may inadvertently increase losses by pushing more nickel usage.

Though once a staple of everyday transactions, pennies have become a nuisance to many Americans. A 2023 Federal Reserve study found that just 16% of consumer payments were made in cash, while a 2022 Pew Research Center survey reported that 40% of Americans never use cash at all.

The average household is estimated to be sitting on $60 to $90 in coins, which are often discarded or left unused. Americans reportedly throw away millions of dollars in change each year.

Still, some groups are encouraging Americans to take a closer look at their coins. Coin collectors and experts recommend using resources like "The 2026 Red Book: A Guide Book of United States Coins" to assess potential value. Coins can also be authenticated and graded through services such as the Numismatic Guaranty Company and the Professional Coin Grading Service.

Beyond monetary value, pennies may still have practical uses. According to Farmers Bank, older copper pennies can act as natural fungicides to keep flowers fresh or serve as makeshift tools and household fixes, such as weighing down curtains or creating cold packs using an old sock filled with frozen pennies.

While the humble penny may soon stop rolling off the mint's machines, its impact—and utility—could endure long after its final press.

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