U.S. Treasury Confirms End of Penny Production

We can all say goodbye to digging in our couch cushions for loose change. It’s official: the U.S. penny is being discontinued. 

The U.S. Treasury has announced that, by early 2026, the humble one-cent coin will no longer be produced, marking the end of a 230-year era. The decision comes down to a surprisingly simple reason: the penny simply costs too much to make.

U.S. Treasury Ends Penny Production

It might seem odd to end production on the smallest coin in the country, but the cost of penny production has steadily increased over the past decade. 

According to the Treasury, it now takes $3.69 cents to make a single penny, more than three times its face value. Multiply that by the millions of pennies produced each year, and you’re looking at an estimated $56 million annual loss.

In fact, the U.S. Mint penny phase-out has been a topic of debate for years. While some people see the coin as a nostalgic staple or a helpful tool for charities, others argue it's long overdue for retirement. 

President Trump reportedly told Treasury Secretary Scott Bessent earlier this year to pull the plug on penny production, calling the coin wasteful.

Rounding Cash Transactions: What Changes?

As the penny circulation ends, everyday transactions will look a little different, but not dramatically so. The plan is to round cash transactions to the nearest five cents. That means if your total comes to $10.02, you’ll likely pay $10.00. If it’s $10.03, you’d round up to $10.05.

Card payments? No change there. Digital transactions will still be processed down to the cent. But, for in-person, cash-based purchases, the idea is to simplify both the checkout process and the national coin supply chain.

A Trend That’s Already Gained Ground

The United States isn’t exactly a trailblazer here. Canada stopped producing its penny in 2012, and countries like Australia and New Zealand made similar moves years ago. 

Even in the UK, the Mint hasn’t made any new 1p or 2p coins in recent years, citing declining demand as more people go cashless.

Here in the U.S., the shift reflects broader trends. With fewer people using physical cash, the need for low-denomination coins isn’t what it used to be. And, while the penny has a long and storied history (it was one of the very first coins minted in 1793), its practical value has steadily declined.

The Final Countdown: U.S. Penny Discontinued for Good

So, what’s next? The Treasury confirmed that its final order of penny blanks has been placed. That means the U.S. Mint will continue producing pennies only as long as those blanks last, which is expected to carry into early 2026. After that, it’s lights out for the penny.

Seeing the U.S. penny discontinued marks the end of a small but iconic part of American life. While some may miss the jingle of copper in their pockets, others are already cheering the move as a long-overdue step toward modernizing U.S. currency.

Whether you’re sad to see it go or relieved to never count out 99 pennies again, the penny’s days are officially numbered.