The U.S. Treasury announced it would halt the production of the nation’s circulating one-cent coin this week, citing escalating manufacturing costs and deeming the currency unnecessary for modern commerce, USA Today reported Wednesday (Nov. 12).
According to the report, U.S. Treasury Secretary Scott Bessent and U.S. Treasurer Brandon Beach were scheduled to mark the striking of the “final circulating penny” that day, formally concluding the production run for a coin that has been in use since the 1790s. The officials were scheduled to gather at the United States Mint in Philadelphia for the event, which was set for Wednesday afternoon around 2 p.m.
The primary driver of the retirement is economic inefficiency. The rising cost to produce the coin has reached 3.69 cents for every one-cent piece. By ceasing production, the U.S. Mint is expected to generate $56 million in annual savings. The Treasury Department confirmed in a news release that the penny “is no longer necessary to meet the needs of the United States,” according to the USA Today report. President Donald Trump initiated the halt in February, instructing the Treasury Department to stop production due to the practice of minting pennies that cost more than they are worth.
Despite the cessation of production, the Treasury Department confirmed that the penny “remains legal tender and will retain its value indefinitely.” There are currently an estimated 300 billion pennies already in circulation, which the department stated is “far exceeding the amount needed for commerce.” Nevertheless, the decision has already created operational challenges within the retail sector. The report noted that since the retirement was announced months ago, businesses including Kroger, Home Depot, Walmart and McDonald’s have reported shortages of pennies, complicating their cash-based transactions. PYMNTS also reported in October on the difficulties the coin’s wind-down is causing for banks and retailers.
The scale of the shift is significant, given the previous reliance on the coin: In the 2024 fiscal year, the Mint produced 5.61 billion coins in total, with pennies accounting for 57% of that production, resulting in 3.2 billion pennies minted in 2024. Pennies meant for circulation are typically minted only in Philadelphia and Denver. Coin collectors will see limited impact, however, as numismatic editions of the penny will continue to be produced in limited numbers. The effort to retire the coin follows decades of failed legislative proposals, including the 1989 Price Rounding Act, which sought to require prices to be rounded to the nearest nickel.
