US Mint Strikes Final Penny After More Than 230 Years

US Ends Penny Production After 230+ Years, Saving $56 Million Annually

The Philadelphia Mint will strike its final batch of one-cent coins on Wednesday, marking the end of a production run that began in 1793.

Though pennies will remain in circulation, the phase-out has prompted businesses to adjust prices, as coins become increasingly scarce.

Why the Penny Is Being Retired

Pennies, made of copper-plated zinc and honoring President Abraham Lincoln, now cost nearly four cents each to produce, more than double the cost a decade ago, according to the Treasury Department.

The government estimates that ending penny production will save about $56 million per year. President Donald Trump, when announcing the plan in February, said it would “rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

The move reflects the rise of electronic payments, which has made the penny increasingly irrelevant. The Treasury estimates about 300 billion pennies remain in circulation, far exceeding commercial demand.

Impact on Consumers

While many pennies remain unused in piggy banks—around 60% of coins in circulation—businesses may begin rounding prices, potentially increasing costs for shoppers. A Richmond Federal Reserve study estimated this could cost consumers $6 million annually.

Global Context

Other countries have already phased out low-value coins:

• Canada: Last one-cent coins produced in 2012

• Australia & New Zealand: Retired one- and two-cent coins in the 1990s

• New Zealand: Stopped production of five-cent coins in 2006

• UK: Planned 1p coin removal in 2018, later withdrawn; production halted in 2024 due to sufficient circulation

Next Target: The Nickel

Attention in the US is now on the nickel, which costs nearly 14 cents to produce. Retiring it could save far more, but would impact consumers more heavily, with a Richmond Fed study estimating a $55 million annual cost increase.