Treasury to End Production of One-Cent Coin

Starting next year, the Treasury will cease production of the one-cent coin, commonly referred to as the penny. This marks the decline of a coin that has been in circulation for more than two hundred years.

Earlier this year, President Donald Trump directed the Treasury Department to halt coin production, calling the pennies “waste.”

There’s been an ongoing debate about the cost versus the utility of the US penny.

In January, Elon Musk’s Unofficial Government Efficiency group took a closer look at the expenses involved in producing a mint penny.

The penny was actually the first coin minted by the US Mint, entering circulation in 1793. However, over the last decade, the cost to produce each penny has surged from 1.3 cents to 3.69 cents, according to Treasury reports.

The Mint estimates that stopping penny production could save approximately $56 million annually in material costs.

Critics argue that penny production squanders money and resources, while supporters believe it helps keep prices low and can benefit charitable contributions.

Citing a report from the Wall Street Journal, it appears that discontinuing the penny will contribute to fluctuations in pricing.

A Treasury spokesman mentioned that following the WSJ report, a final order for penny blanks was issued, although the production of pennies will continue until the existing inventory is depleted.

Other nations have already eliminated similar coins; Canada, for instance, stopped minting one-cent coins in 2012, pointing to rising minting costs and diminishing purchasing power.

The trend of reduced cash usage recently led to the UK choosing not to reinstate new coins in 2024, as officials believe there are sufficient coins in circulation already.

Interestingly, the UK Treasury noted that there have been years where 2p coins weren’t produced at all, reflecting a shift toward cashless transactions among more consumers.