Treasury Department set to phase out the penny

The decision to stop manufacturing the penny marks the end of an era for one of the oldest coins minted by the U.S. government. The Treasury Department recently announced that it placed its final order for penny blanks, with the United States Mint expected to cease production of the penny once the current supply runs out in early 2026.

Originally minted in the early days of the U.S. Mint after its establishment in 1792, the penny now costs more to manufacture than its actual value. According to the U.S. Mint’s 2024 annual report, the 1-cent coin cost approximately 3.7 cents to produce and distribute in 2024. As a result, ending production of the penny is projected to save the Mint around $56 million annually.

Despite their copper appearance, pennies are primarily composed of zinc, with a copper overlay giving them their distinctive look. The rising cost of zinc, which has more than doubled since 2000, has contributed to the decision to discontinue the penny.

The Trump administration had previously signaled its intention to halt production of the penny, citing the escalating production costs. In a social media post, former President Trump expressed frustration over the wastefulness of minting pennies that cost more than their face value. This sentiment was echoed by previous administrations, with former Treasury Secretary Jacob Lew advocating for the discontinuation of the penny in 2015.

The decision to stop manufacturing the penny reflects a broader trend towards efficiency and cost-saving measures within the government. By ceasing production of the penny, the Mint aims to streamline its operations and allocate resources more effectively.

As the penny fades into obsolescence, it serves as a reminder of the changing landscape of currency and the need to adapt to evolving economic realities. While some may mourn the loss of this iconic coin, the decision to retire the penny reflects a pragmatic approach to managing the nation’s currency system.