BREAKING NEWS: The US Treasury is set to mint the final circulating one-cent coin, or penny, marking the end of an era in American currency. US Treasury Secretary Scott Bessent and Treasurer Brandon Beach will oversee production at the Philadelphia Mint later today, as the government responds to escalating production costs and changing consumer habits.
The decision comes after President Donald Trump announced in February that he would halt what he termed the “wasteful” minting of pennies. Each penny now costs taxpayers nearly 4 cents to produce, up from 1.42 cents a decade ago. This move is expected to save the US Mint approximately $56 million annually, a significant financial relief for the agency.
Officials from the Treasury stated that rising production costs have rendered the penny “financially untenable.” With an estimated 300 billion pennies currently in circulation, the need for additional pennies has diminished. “Far exceeding the amount needed for commerce,” the Treasury confirmed that while pennies will remain legal tender, their production will cease.
The penny, first issued by the US government in 1793, has long been a staple of American culture. Its design featuring President Abraham Lincoln has adorned the coin since 1909. American University professor Gabriel Mathy expressed nostalgia over the decision, stating, “Sad to see the penny go but it was inevitable given rising costs.” He added that many may begin hoarding pennies, which have increasingly become a novelty rather than a necessity.
The US joins other countries like Canada, Australia, Ireland, and New Zealand that have phased out their lowest-value coins, opting instead for rounding cash transactions to the nearest five cents. However, electronic payments will continue to be processed with exact amounts.
In fiscal year 2024, pennies accounted for an astonishing 57 percent—or 3.2 billion—of the Mint’s total production of 5.61 billion circulating coins. While the Mint will cease the production of circulating pennies, it will still create limited quantities of collector versions to honor this iconic coin’s legacy.
As the US Treasury prepares for this monumental change, consumers and businesses alike are already adapting to the new reality. Service stations, fast-food chains, and major retailers are adjusting prices, and cash transactions are being rounded as the final pennies roll out.
This significant shift not only addresses economic concerns but also reflects the evolving landscape of currency usage in America. With the penny’s fate now sealed, many Americans are left to ponder the future of cash transactions and the role of coins in everyday commerce.
Stay tuned for more updates as this story develops.
