U.S. Mint to Cease Penny Production
Washington – The U.S. Mint has issued a final order for penny blanks and will stop coin production once they are depleted, Treasury officials confirmed on Thursday. This decision is influenced by the rising costs of penny production projected for 2024.
Halting penny production is expected to save the Treasury Department about $56 million in material costs, as shared by a source who spoke anonymously regarding the matter.
Earlier this year, President Donald Trump announced plans to cease the minting of one-cent coins. In a post on his social media platform, he expressed frustration, saying, “For too long, the US has been making pennies that literally cost more than two cents. This is a waste!”
Currently, there are approximately 114 billion pennies in circulation in the U.S., valued at around $1.14 billion, but they are seldom used, according to the Treasury. The penny was among the first coins minted in the U.S. after the establishment of the Mint in 1792.
Philadelphia Mint is one of two facilities in the country that produces pennies for circulation, with the other located in Denver. The San Francisco Mint is responsible for proof coins, which are not intended for circulation.
The national Treasury Secretary can create and issue coins as deemed necessary for the country’s needs. Advocates for eliminating the penny highlight that the production cost has risen to about 4 cents each, while its practical use is declining. On the other hand, penny supporters point out that pennies can still be beneficial for certain transactions, particularly in charitable donations, especially considering the minting cost of nickels is around 14 cents.
The Wall Street Journal first reported this development.
Pennies have been the most widely produced coins by the U.S. Mint, with production at about 3.2 billion last year, representing more than half of all newly minted coins.
Congress has the power to set specifications for currency, including coin size and metal composition, which could formalize Trump’s initiative through legislation. However, past attempts to eliminate pennies have not succeeded.
This year, two bipartisan bills aimed at abolishing the penny have been introduced concurrently. Senator Mike Lee and Representative Jeff Merkley proposed the Make Sense Not Cents Act, while Rep. Lisa McClain, Senator Cynthia Lummis, and others introduced the Common Cents Act.
Jay Zagorsky, a professor at Boston University, supports ending penny production but suggests that proposed legislation should include measures for rounding prices to lessen the need for pennies. He cautioned that simply eliminating the penny could lead to an increased reliance on nickels, which are even more costly to produce.
“If you’re increasing the demand for nickels by removing the penny, then you’re likely going to lose more money in the long run,” Zagorsky stated.
Mark Weller, executive director of the Common Cent Group, conducts research on penny valuation and its implications. He noted that the movement to stop penny production has gained momentum over recent months.
His group is focused on finding ways to reduce nickel production costs, especially as its demand may surge once the penny is completely phased out. “The Treasury must identify more cost-effective methods for minting nickels,” Weller advised. “It’s about keeping the coinage minimal and ensuring cash remains an option for transactions.”
