Federal Reserve Reports Suspended Cent Orders

Earlier this year, as part of a package of sweeping cuts under the DOGE (Department of Government Efficiency) initiative to eliminate waste, President Trump directed the US Treasury Secretary to cease production of the country’s lowest denomination coin (each of which costs 3.7 times its face value to produce), reigniting a decade-long debate about the future of the coin (see CN February 2025).

The President’s directive only referred to stopping the production of new pennies; he does not have the authority to order the withdrawal of the coin, which will require legislation.

Even so, the effects are already being felt, with the Federal Reserve reporting that 28 armoured carrier locations across the United States – contracted to distribute coins and paper money across the 12 Federal Reserve Bank districts – have suspended orders and deposits involving the Lincoln one cent coins.

More recently, banks and retailers have noted a shortage in these coins, despite initial confidence that stocks were sufficiently high to mitigate any short-term impact of the end of penny production. Industry groups suggest that penny production ceased earlier than expected – albeit 1.3 billion cent coins have been produced so far this year, compared to 33.2 billion in 2024 – and access to existing pennies has become more difficult.