U.S. Mint Halts Penny Production as Costs Soar, President Trump Cites Waste
The U.S. Mint in Philadelphia has pressed its final penny, ending production of the 1-cent coin in 2025 due to rising costs and President Trump's order, saving $56 million annually.
U.S. Mint presses last pennies
Chicago Sun-Times
Overview
- President Donald Trump ordered the discontinuation of the U.S. penny, citing its production cost of 3.7 cents in 2024 far exceeded its face value, deeming it wasteful.
- The U.S. Mint in Philadelphia, which has produced pennies since 1792, pressed its final 1-cent coin, officially ending production in 2025 to save an estimated $56 million annually.
- Despite the halt, billions of pennies remain legal tender and will retain their value indefinitely, though they are expected to become increasingly scarce and less frequently used in transactions.
- Retailers are already experiencing penny shortages, leading to requests for exact change or rounding cash transactions, while some banks have begun rationing their dwindling supplies.
- The decision to cease penny production follows a historical precedent, as the U.S. Mint previously discontinued the half-cent in 1857, reflecting the coin's diminishing relevance and buying power.
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Analysis
Center-leaning sources frame the penny's discontinuation by acknowledging cost-saving measures while emphasizing its complexities and sentimental value. They highlight potential financial drawbacks, such as the higher cost of nickels, and underscore the coin's cultural significance and practical uses. This approach creates a nuanced narrative that balances economic rationale with broader societal impacts.
"The familiar Abraham Lincoln penny cost about 3.7 cents to produce in fiscal year 2024, according to the U.S. Mint's annual report."
USA TODAY"It made sense to stop production of the penny, but just about everyone agrees that Trump went about it the wrong way."
Gizmodo"The U.S. Mint ended production of the penny, citing cost savings and the coin’s fading relevance as its buying power—once enough for a snack or candy—has all but disappeared."
Fortune"Pennies remain legal tender, but new ones will no longer be made."
Chicago Sun-Times"The U.S. Mint in Philadelphia on Wednesday pressed its last penny, marking the latest step in the 1-cent coin's demise."
ABC News"The phase-out of the penny has been abrupt, impacting retailers who rely on price tags ending in $.99 to attract customers."
Associated Press"The U.S. Mint says it has stopped producing pennies, a historic shift in currency two centuries after the one-cent coin entered circulation."
USA TODAY"But their luck is about to run out."
ABC News"The penny "is no longer necessary to meet the needs of the United States," the Treasury Department said in a news release."
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FAQ
The U.S. Mint stopped producing the penny because its production cost 3.7 cents in 2024, which significantly exceeded its one-cent face value, leading President Trump to order its discontinuation to prevent wasteful spending and save $56 million annually.
The U.S. Mint in Philadelphia pressed its final penny in 2025, officially ending production of the one-cent coin that year.
Billions of pennies will remain legal tender and retain their value indefinitely, although they are expected to become increasingly scarce and less commonly used in transactions.
Retailers are reporting penny shortages, leading them to request exact change or round cash transactions, and some banks have begun rationing their limited penny supplies.
Yes, the U.S. Mint previously discontinued the half-cent coin in 1857 due to its diminishing relevance and buying power, which parallels the decision to halt penny production.
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