US Treasury to end penny production by early 2026

The US Treasury Department has officially confirmed it will end production of the penny coin by early 2026, marking a significant shift in American currency policy after years of debate over the coin’s utility and rising production costs.

The move follows a directive from President Donald Trump issued in February 2025, and comes amid growing bipartisan support in Congress to phase out the lowest denomination of US currency.

The Treasury has reportedly placed its final order for penny blanks, with officials stating that the US Mint will continue to manufacture the coin only while existing materials last.

The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on Thursday.https://t.co/kNY1IwyhHG

— 7News DC (@7NewsDC) May 23, 2025

Once the current inventory is exhausted, no new pennies will enter circulation, although existing coins will remain legal tender and can still be used for purchases.

The department estimates that halting production will save American taxpayers $56 million annually.

President Trump described the penny as "wasteful," noting that each coin now costs over 3.6 cents to produce—more than three times its face value.

In a post on social media, he said, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on Thursday.https://t.co/kNY1IwyhHG

— 7News DC (@7NewsDC) May 23, 2025

In Congress, lawmakers introduced two bipartisan bills this year aimed at permanently ending penny production: the Make Sense Not Cents Act and the Common Cents Act.

These measures reflect a broader consensus that the coin’s continued production no longer makes economic sense.

As a result of the change, retailers and other businesses will begin rounding cash transaction totals to the nearest five cents. Electronic payments, however, will remain unchanged and can still reflect exact amounts.

The penny, first introduced in 1793 and bearing President Abraham Lincoln’s likeness since 1909, has long been a fixture of American life.

But critics argue it is increasingly obsolete in a digital economy and often ends up forgotten in jars and drawers.

Supporters, including charitable groups and some economists, argue that the coin is still useful for maintaining price accuracy and supporting donation drives.

There are currently around 114 billion pennies in circulation.

While the US Mint will continue producing nickels, experts warn this could become more costly.

Nickels cost nearly 14 cents each to mint, raising concerns that ending penny production might simply shift financial pressure elsewhere in the coinage system.

The United States now joins other nations such as Canada, Australia, and New Zealand, which have already phased out their lowest-denomination coins.

Analysts say the success of the policy will depend on how the transition is managed and whether the government can also reduce production costs for more expensive coins like the nickel.