The US Mint has announced it will place its final order for Penny Blanks, signaling a complete halt to penny production by early next year.
This decision follows remarks made by President Donald Trump in February, where he directed the Mint to stop producing pennies due to their rising production costs. He stated, “Let’s tear waste from the budgets of our great nation, even if it’s a penny at once.”
In the past ten years, the cost to produce pennies has jumped significantly, from 1.3 cents per coin to a staggering 3.69 cents, with a notable 20% increase just in 2024.
Halting penny production is expected to save the economy approximately $56 million immediately, with more savings anticipated from reduced facility use and related changes.
As there aren’t enough pennies circulating, businesses will have to adjust prices in increments of five cents, according to reports. Although the penny appears to be losing its practical use, the Mint still produced 3.2 billion pennies last year, making it the most printed coin in the US. This amount constitutes over half of all new coins made.
Currently, a remarkable 114 billion pennies are estimated to be in circulation across the country.
This year, two bipartisan bills have been introduced in Congress aiming to put an end to penny production. On May 1st, Senators Mike Lee (R-Utah) and Jeff Merkley (D-Ore.) presented the “Cense Not Cents Act.” Just a day ago, the “Common Sense Act” was submitted with contributions from Lisa McClain (R-Mich.), Robert Garcia (D-Calif.), Senator Cynthia Lummis (R-Wyo.), and Kirsten Gillibrand (D-N.Y.).
The penny was among the first coins minted after the establishment of the US Mint in 1792. Since then, its design, signature, and metal composition have undergone several changes. Initially made of copper, it was later revised to a mixture of zinc and copper. Abraham Lincoln’s image first appeared on the penny in 1909 to commemorate the 100th birthday of the 16th President.
