After more than 230 years in circulation, the humble penny is on its way out.
In 2025, the U.S. Treasury, under direction from President Trump, announced plans to discontinue production of the one-cent coin. This decision follows nearly two decades of debate and mounting evidence that the penny costs more to make than it's worth. In 2024 alone, it cost the U.S. Mint approximately 3.7 cents to produce each penny, totaling $117 million in production costs for a coin worth just one cent. [congress.gov]
Why Is the Penny Being Discontinued?
The penny’s production has long been a financial drain. Made of copper-plated zinc, its manufacturing involves materials, labor and distribution costs that far exceed its face value. As electronic payments become more common and cash usage declines, now accounting for only about 16% of transactions, the penny’s role in everyday commerce has diminished. [congress.gov]
What Happens Next?
Legislation introduced in the 119th Congress aims to formally eliminate the penny. While the coin will no longer be produced, it will likely remain legal tender for the foreseeable future. That means you can still use pennies you have, but they just won’t be minted anymore.
This isn’t the first time the U.S. has retired a coin. The half-cent was discontinued in 1857, and the $2.50 gold coin (known as the quarter-eagle) was phased out in 1930. [congress.gov]
What Does This Mean for You?
For most consumers, the impact will be minimal. Retailers may round prices to the nearest nickel, and digital transactions won’t be affected at all. However, industries that rely heavily on coin-based transactions like vending machines and laundromats may need to adjust.
And for collectors? The penny’s long history, from its first issue in 1793 to its iconic Lincoln design, ensures it will remain a treasured piece of Americana.