US Mint Ditches Pennies: Say Goodbye to Cents!
WASHINGTON (AP) — The Trump administration states that producing pennies no longer makes sense.
The U.S. Mint has placed its last order.
penny
Gaps and intentions to halt production of the penny once those gaps occur have been verified by an official from the Treasury Department on Thursday. The decision follows a significant rise in the expense of minting pennies—by more than 20% in 2024, as reported by the Treasury.
By halting the production of pennies, the Treasury anticipates saving approximately $56 million annually from decreased materials expenses, as stated by an official who declined to be identified for public comment but provided background information ahead of time.
In February, President Donald Trump did so.
announced
He instructed his administration to stop producing the 1-cent coin.
For far too long, the United States has been manufacturing pennies that actually cost over two cents each. This is incredibly inefficient!” Trump stated in a posting on his Truth Social platform at that time. “I’ve directed my U.S. Treasury Secretary to cease the production of additional pennies.
There are approximately 114 billion pennies circulating in the United States today, which equates to $1.14 billion; however, these coins are significantly underused according to the Treasury. The penny remains one of the
first coins made
by the U.S. Mint following its founding in 1792.
The country’s treasurer has the power to produce and distribute coins “in quantities they deem essential to fulfill the requirements of the nation.”
Proponents of eliminating the penny point out its high production cost, which currently stands at nearly 4 cents per penny, as stated.
the U.S. Mint
—and restricted functionality. Enthusiasts of the penny appreciate its role in charitable collections and its relatively low production expense when contrasted with the nickel, which has a strikingly high cost of nearly 14 cents to produce.
The Wall Street Journal was the first to report this information.
Pennies are the most favored coins produced by the U.S. Mint, with reports indicating they manufactured 3.2 billion of these coins last year. This figure represents over fifty percent of all newly minted coins for the year.
The congress, responsible for determining currency specifications like the dimensions and metallic composition of coins, has the power to enact President Trump’s directive into law permanently. However, previous attempts by Congress to eliminate the penny have been unsuccessful.
This year saw the introduction of two cross-party bills aimed at eliminating the penny for good.
Senators Mike Lee from Utah, who represents the Republican party, and Jeff Merkley from Oregon, representing the Democratic party, have introduced the legislation.
Sense Over Nonsense Act
This month. In April, Representatives Lisa McClain from Michigan for the Republican Party and Robert Garcia from California representing the Democratic Party, alongside Senators Cynthia Lummis of Wyoming as a Republican and Kirsten Gillibrand of New York affiliated with the Democrats, presented the Common Cents Act.
Jay Zagorsky, a professor specializing in markets, public policy, and law at Boston University, expressed his support for ceasing the production of pennies. However, he emphasized that Congress should incorporate specific wording into potential legislative proposals mandating price rounding upwards, thereby reducing the necessity for using pennies altogether.
Zagorsky, whose recent publication titled “The Power of Cash: Why Using Paper Money is Beneficial for You and Society” was released, pointed out that merely eliminating the penny would lead to an increased reliance on nickels instead. This shift could be problematic since each nickel costs 14 cents to manufacture, making them even pricier than pennies.
“Should we abruptly need to mint many more nickels—and end up losing more funds with each coin produced—phasing out the penny would not be logical.”
Mark Weller, the executive director of the Americans for Common Cents organization—which focuses on researching and informing Congress and the Executive Branch about the significance and advantages of the penny—states that “over the last six months, there has been a shift suggesting that the production of the penny will eventually cease.”
His organization pushes for the U.S. to explore methods to lower the production costs of nickels, particularly because these coins will become even more necessary when pennies are completely removed from circulation.
“It’s essential for the Treasury to find a more cost-effective method of producing nickels,” Weller stated. “We should ensure that our coin production remains as inexpensive as possible and keep the choice available to utilize cash in transactions.”
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Suderman reported from Richmond, Virginia.
Alan Suderman and Fatima Hussein, The Associated Press