End of Penny Production Confirmed – At Last

After years of debate about the future of the US one cent coin (penny), the US Treasury has now confirmed that its production will stop once stocks of blanks, the last order for which was placed this month, are used up.

The announcement follows President Trump’s order to the Treasury Secretary in February to stop producing pennies as part of the drive to reduce waste and government costs.

The penny was one of the first coins made by the US Mint, entering circulation in 1793. But over the past 10 years the cost of producing it has risen from 1.3 cents to 3.69 cents, jumping up from 2.7 since 2022 alone. The Mint estimates that stopping production will result in an immediate annual saving of $56 million in material costs.

What next?

Speculation now turns to whether the US will introduce some form of cash rounding, and drop the one cent from circulation altogether. Complete withdrawal will need to involve the US legislature as Congress determines currency specifications, including metal composition, denomination and sizing, and so any amendment to the currency structure will require its approval.