The Treasury announced on Thursday its intention to cease penny production, effectively phasing out one of the oldest forms of currency in the country.
The US Mint has issued a final order for penny blanks and will halt coin production, as stated by Treasury officials.
While only Congress has the authority to completely eliminate or suspend the coin, the Treasury can decide to end new production.
Reports indicate that each penny costs around four cents to make. By stopping penny production, the Mint anticipates saving approximately $56 million annually by cutting material expenses.
For quite some time, lawmakers and leaders have debated the necessity of the cent coin, and some have introduced legislation to push for its discontinuation.
“For years now, the US has been minting pennies that cost more than two cents to produce—what a waste! I’ve instructed the US Treasury secretary to put an end to the creation of new pennies,” a statement remarked.
Colorado Governor Jared Polis described the decision as a “significant step.” He emphasized, “Not only will this save taxpayers hundreds of millions of dollars, but it will also have major environmental benefits,” he shared online.
Former President Obama has voiced his support for this initiative as well. The Treasury has not yet responded to requests for comments regarding this matter.
