After over 230 years of jingling in our pockets, the penny’s time is finally up.
The U.S. Treasury has officially announced plans to stop producing the iconic one-cent coin by early 2026. The move, driven by bipartisan support and concerns over rising production costs, could save the government an estimated $56 million each year.
The decision comes just months after former President Donald Trump shared on Truth Social that he had directed Treasury Secretary Scott Bessent to phase out the penny, calling it a “wasteful expense.”
Why the Penny Had to Go
According to the Treasury Department, the cost of minting a single penny has ballooned to nearly four cents — about 3.69 cents per coin — in recent years. In contrast, each coin’s face value remains just one cent. Multiply that over billions of coins, and it’s clear why policymakers are ready to pull the plug.
This financial imbalance has long fueled debates among economists and lawmakers, with many labeling the penny an outdated relic. And now, with bills introduced in both the House and Senate to officially end its production, the penny’s fate is sealed.
What It Means for You
So, how will this affect everyday consumers?
Starting in 2026, businesses will begin rounding cash transactions to the nearest five cents. That means if your total bill comes to $10.02, you may pay $10.00 or $10.05 depending on store policies. Digital and card payments will still be charged to the exact amount.
While some fear this could lead to minor price hikes, studies in other countries that have eliminated low-denomination coins suggest that consumers likely won’t feel much of a difference.
A Bit of Penny History
The penny has been part of American life since 1793. President Abraham Lincoln’s face has graced the coin since 1909, and despite its low value, the penny holds significant nostalgic and symbolic meaning for many Americans.
Supporters argue that the coin supports charitable causes and allows for exact change, especially among lower-income individuals. Critics, however, say pennies often collect dust in jars or car cupholders and no longer serve a practical purpose in today’s economy.
What’s Next?
As of now, there are about 114 billion pennies in circulation across the U.S. They won’t be withdrawn immediately, but no new coins will be minted after 2025. While collectors might hold onto them for sentimental reasons, most will slowly disappear from everyday use.
Whether you love them or lose them in your couch cushions, the penny’s legacy is undeniable. But in an age of digital payments and economic efficiency, it’s time for America to move forward — one nickel at a time.
