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7h ago

U.S. Treasury to End Penny Production After Final Order of Blanks

The phase-out, initiated by President Trump's directive, is expected to save $56 million annually and will require cash transactions to round 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 Treasury Department confirmed it placed its final order for penny blanks in May 2025, with production set to cease by early 2026.
  • The penny, which costs 3.69 cents to produce, has become inefficient, prompting bipartisan support for its discontinuation.
  • Businesses will begin rounding cash transactions to the nearest nickel as pennies are phased out, though existing pennies will remain legal tender.
  • The move is projected to save taxpayers $56 million annually in material costs, according to Treasury estimates.
  • The penny, first minted in 1793 and featuring Lincoln since 1909, joins other countries like Canada in eliminating its lowest-denomination coin.