The US Treasury announced plans to end one-cent coin production after bipartisan legislative moves (S. 1525 and H.R. 3074) and a directive from President Trump. Pennies cost more than triple their face value to produce; their elimination is projected to save millions annually, with existing pennies remaining legal tender.
The U.S. Treasury Department has announced a plan to cease production of the one-cent coin, following bipartisan legislative efforts (S. 1525 and H.R. 3074) and a directive from President Trump, who called the coin's production "wasteful." The department placed its final order for blank pennies from the United States Mint earlier this month, as first reported by The Wall Street Journal, and cent circulation is expected to end once those inventories are exhausted.
Rising Production Costs
Each penny now costs 3.69 cents to produce—more than triple its face value and up 20.2% from 2023 alone—while the nickel costs even more at 9.63 cents apiece, according to the Mint's fiscal year 2024 annual report. Combined, the two lowest denominations drained $103 million last year—$85.3 million for the penny and $17.7 million for the nickel. It marked the nineteenth consecutive year that the cost of producing both coins exceeded their face values. Ending penny production is projected to save tens of millions annually, though shared minting costs will shift to other denominations, raising their production expenses.
Current Circulation and Legal Status
In calendar year 2024, the U.S. Mint produced approximately 3.23 billion pennies, representing about 57.5% of the year's total coin output of 5.61 billion. An estimated 114 billion one-cent coins remain in circulation, though many see little active use. They will continue to be accepted as legal tender even after production ends. Over time, cash transactions are expected to round to the nearest nickel—a system already adopted by countries like Canada, which phased out its penny in 2012.
Future of Coin Production
The U.S. Mint has been exploring more cost-effective ways to produce the five-cent coin and other denominations, focusing on alternative metal compositions and enhanced manufacturing methods. In its 2022 Biennial Report to Congress, the Mint identified an 80/20 cupronickel alloy—80% copper and 20% nickel—as a viable alternative that could be implemented roughly one year after receiving congressional authorization.
History and Debate
First struck in 1793 and bearing Lincoln's profile since 1909, the penny has long been a subject of debate. Critics argue that eliminating it will streamline cash transactions and reduce waste, while others express concern over rounding impacts and potential effects on charitable giving.