Press Release: U.S. Mint to Halt Penny Production Amid Rising Costs
WASHINGTON — The U.S. Mint has announced its final order of penny blanks, signaling the end of penny production as the costs escalate beyond 20% in 2024. This decision, confirmed by a Treasury Department official on Thursday, is projected to save the government approximately $56 million annually in material costs.
In February, President Trump directed the cessation of penny minting, emphasizing the financial inefficiency: “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Approximately 114 billion pennies—valued at $1.14 billion—currently circulate in the U.S., yet they are underutilized according to Treasury assessments.
Advocates for eliminating the penny highlight its production cost, which nearly reaches 4 cents, alongside its limited practical use. However, proponents of the penny point to its role in charity drives and assert that the production cost of a nickel, nearly 14 cents, could exacerbate fiscal issues if the penny is discarded.
The discussion around the penny isn’t new; there have been past legislative attempts to abolish it, although none have succeeded. This year, bipartisan bills, including the Make Sense Not Cents Act from Senators Mike Lee and Jeff Merkley, and the Common Cents Act by Representatives McClain and Garcia alongside Senators Lummis and Gillibrand, have reinvigorated the debate.
Experts, like Boston University’s Jay Zagorsky, suggest that any legislation to phase out the penny must include measures to mitigate demand for nickels, to prevent escalating production costs.
Mark Weller of Americans for Common Cents asserts that if the penny disappears, discussions should also focus on reducing nickel production costs to ensure a sustainable cash economy.
As the U.S. grapples with currency efficiency, significant changes may be on the horizon in America’s coinage.
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