Pennies No Longer Minted in the U.S.
The final penny was minted at the U.S. Mint in Philadelphia, marking the end of a coin production that began in 1793. It’s already starting to feel a bit strange not having them around.
Reports indicate that some stores are running low on pennies, which means customers now have to round their cash transactions to the nearest 5 cents if they can’t find the exact change.
In February, President Donald Trump directed the Treasury Department to halt penny production as part of a budget-reduction initiative. However, this could lead to higher costs when it shifts to producing nickels, which are more expensive to make, contributing to further financial losses.
“For too long, the U.S. has been minting pennies that cost more than 2 cents. That’s just wasteful!” Trump remarked on his social media platform, indicating he had told the Secretary of the Treasury to cease new penny production.
The classic Abraham Lincoln penny now costs around 3.7 cents to produce. On the other hand, producing a nickel comes to about 13.8 cents.
Cost of Production for Pennies and Nickels
What’s interesting—if you check the right sources—there are graphics showing the costs. The penny was one of the earliest coins from the U.S. Mint, which has been around for over 230 years.
Production costs for both coins have risen over the past two decades, influenced partly by increased prices of raw materials like copper, nickel, and zinc.
When metal prices soar, production costs follow suit. If these costs get too high, the actual value of the coins can become lower than what it costs to make them. That’s a bit ironic, isn’t it?
Penny Production Statistics
In 2024, approximately 3.2 billion pennies were produced, a decrease from the previous year. Yet, the costs of making and distributing them have surged by about 20% in the same timeframe.
Coins stay in circulation unless they get damaged, but a lot end up lost or thrown away by accident. The COVID-19 pandemic in 2020 caused a notable dip in inventories, prompting the Federal Reserve to ask the Mint to boost the supply.
Legal Status of the Penny
The Finance Ministry’s final order for penny blanks was made in May, as stated by the Federal Reserve Bank of Richmond.
According to the Treasury Department, while pennies will remain legal tender, they won’t be minted anymore. It’s estimated there are around 300 billion pennies in circulation, which is more than enough for day-to-day commerce.
Some political figures and economists have long pushed for eliminating the penny altogether. For instance, former President Barack Obama mentioned in a 2013 interview that getting rid of the penny could be a good metaphor for the challenges lawmakers face.
Looking globally, countries like Canada, the U.K., and Australia have either stopped or completely phased out production of low-denomination coins. Canada abolished the penny in 2012, transitioning to rounding financial transactions to the nearest 5 cents.
