Summary (tl;dr)

The U.S. Mint has officially ceased production of the penny, effective November 13, 2025, primarily due to the rising cost of manufacturing the coin, which far exceeds its face value. Existing pennies will remain legal tender, but no new one-cent coins will be minted.

Essential Background

The one-cent coin has been a part of U.S. currency for over 230 years, first authorized by the Coinage Act of 1792. For nearly two decades, the cost to produce a penny has exceeded its worth, leading to ongoing debates about its necessity and calls for its discontinuation. The half-cent was the last U.S. coin to be discontinued, in 1857. Other countries, such as Canada, have also phased out their lowest-denomination coins in recent years.

The Full Story

On Wednesday, November 13, 2025, the U.S. Mint officially struck its final penny at the Philadelphia Mint, marking the end of its regular circulation production. This decision follows a directive issued by President Donald Trump in February 2025, who deemed the production of pennies "wasteful". Each penny currently costs approximately 3.69 cents to produce, nearly four times its face value, leading to an estimated annual loss of about $56 million to $85.3 million for taxpayers. While billions of pennies are still in circulation and will continue to be legal tender, the cessation of new production aims to reduce government spending. The Mint will, however, continue to produce limited quantities of numismatic (collector) versions of the penny.

Why It Matters

The discontinuation of the penny is expected to have several implications. Most notably, cash transactions will likely see rounding to the nearest five cents (nickel) as the supply of pennies gradually diminishes. This change could save the Treasury millions of dollars annually but has also raised concerns among some, including retailers and economists, about a potential "rounding tax" that could disproportionately affect low-income consumers who rely more heavily on cash transactions. Despite arguments against its elimination, the move reflects evolving consumer habits, with a growing preference for digital payments over cash. The decision also highlights the ongoing evaluation of coin production costs and their economic viability in a modern economy.