Penny dropped: US Mint to end one-cent coin production after 231 years

UPDATED: May 23, 2025 03:23 IST

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 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 under President Donald Trump, who 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.”

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.

Yet the penny has its defenders. Supporters argue it's still useful in charity drives, price rounding, and nostalgic value, and 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.

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.

(With inputs from Associated Press)