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3d ago

U.S. Treasury Finalizes Plans to End Penny Production by Early 2026

The decision, driven by rising costs and low utility, is expected to save $56 million annually and require businesses to round cash transactions to the nearest nickel.

One-cent U.S. coins known as the penny are shown in this illustration picture, after U.S. President Trump informed on his Truth Social media account that he instructed the Secretary of the US Treasury to stop producing new pennies, February 11, 2025. REUTERS/Mike Blake/File Photo
FILE - Freshly-made pennies sit in a bin at the U.S. Mint in Denver on Aug. 15, 2007. (AP Photo/David Zalubowski, File)
The US Treasury Department plans to discontinue production of new pennies starting early in 2026.

Overview

  • The U.S. Treasury Department has placed its last order for penny blanks, with production set to cease once supplies are depleted by early 2026.
  • The move follows President Trump's February directive to halt penny production, citing inefficiency as the coin costs 3.69 cents to produce.
  • Ending penny production is projected to save $56 million annually in material costs, with additional savings expected from operational adjustments.
  • Around 114 billion pennies remain in circulation, but their usage has significantly declined as digital payments dominate transactions.
  • Businesses will transition to rounding cash transactions to the nearest five cents, mirroring practices in countries like Canada that have phased out similar coins.