The U.S. Treasury Department announced it will stop producing pennies beginning in 2026, ending more than two centuries of minting the 1-cent coin.
Despite roughly 114 billion pennies in circulation, most are unused, collecting dust in drawers or lost on the streets. The decision follows a 2025 directive from President Donald Trump, who cited the high production cost, nearly 4 cents per penny. In 2024 alone, the government lost over $85 million by producing about 3 billion pennies.
Once the current supply of penny blanks runs out, the U.S. Mint will cease production. The Treasury plans to roll out the change gradually, allowing businesses and consumers to adjust.
With the coin’s phaseout, cash transactions will round to the nearest nickel. This system is already in use in countries like Canada, which eliminated its penny in 2013. Under the model, totals ending in 1 or 2 cents round down, while those ending in 3 or 4 cents round up.
Though some fear rounding could lead to higher prices, economists predict the overall impact would be negligible. The move has received bipartisan backing, with past presidents, including Barack Obama, favoring the change.
As the nation prepares to bid farewell to the penny, the public is encouraged to use or donate spare change. Collectors may see increased interest in rare or historical 1-cent coins. The penny has been in continuous production since 1793, making this shift a historic moment in U.S. currency policy.