The U.S. Mint ended production of the penny, a change made to save money.
“Today the Mint celebrates 232 years of penny manufacturing,” said Kristie McNally, Acting Mint Director. “While general production concludes today, the penny’s legacy lives on. As its usage in commerce continues to evolve, its significance in America’s story will endure.”
The penny was first authorized by the Coinage Act of 1792. Due to economic and production factors, combined with “evolving consumer behavior, have made its continued production unsustainable,” the Mint explained. “Over the past decade, the cost of producing each penny has risen from 1.42 cents to 3.69 cents per penny.”
While production has concluded, the penny will remain legal tender. There are an estimated 300 billion pennies in circulation.
President Trump called for the change in a February statement on Truth Social, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”
In the 2024 fiscal year, the government spent approximately $85.3 million to produce nearly 3.2 billion pennies.
The American Bankers Association sent an October letter to Federal Reserve Chairman Jerome Powell and Treasury Secretary Scott Bessent, urging them to “take coordinated steps to smooth the operational challenges associated with the decision to discontinue minting the penny, including by educating the public, giving guidance on rounding transactions, and ensuring the existing penny supply continues to circulate during the transition.”
