WASHINGTON — The U.S. Mint will cease production of the penny once its final order of penny blanks is depleted, a Treasury Department official confirmed on May 22, 2025. The decision, driven by a 20% increase in production costs in 2024, is expected to save $56 million annually in material expenses. The official, not authorized to speak publicly, provided details on condition of anonymity.
In February, President Donald Trump ordered the Treasury to stop minting pennies, citing their inefficiency. “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote on Truth Social. “I have instructed my Secretary of the US Treasury to stop producing new pennies.” The move aligns with the Treasury’s authority to issue coins based on national needs, as outlined by law.
Currently, 114 billion pennies, valued at $1.14 billion, circulate in the United States, but their usage is minimal, according to the Treasury. The penny, one of the first coins produced by the U.S. Mint since its founding in 1792, costs nearly 4 cents to mint, per the Mint’s latest figures. In contrast, nickels cost 14 cents each to produce, raising concerns about future demand shifts.
The decision follows years of debate over the penny’s relevance. Advocates for eliminating the coin highlight its high production cost and limited utility in modern transactions. The U.S. Mint produced 3.2 billion pennies in 2024, over half of its total coin output, yet many remain unused. Conversely, supporters, including the Americans for Common Cents group, emphasize the penny’s role in charity drives and its lower production cost compared to nickels.
Congress has the power to make the cessation permanent through legislation, but past efforts have stalled. In 2025, two bipartisan bills were introduced to end penny production. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., proposed the Make Sense Not Cents Act in May. Earlier, in April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., alongside Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Neither bill has yet passed.
Jay Zagorsky, a professor at Boston University and author of “The Power of Cash: Why Using Paper Money is Good for You and Society,” supports ending penny production but warns of unintended consequences. “If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn’t make any sense,” Zagorsky said. He urges Congress to include pricing rounding provisions in legislation to curb nickel demand.
Mark Weller, executive director of Americans for Common Cents, acknowledges the shift. “There has been an evolution over the past six months that inevitably the production of the penny will be halted,” Weller said. He advocates for cost reductions in nickel production to ensure affordable coinage. “It’s incumbent on Treasury to come up with a cheaper way to make the nickel,” Weller added. “Let’s make sure we’re making our coins as least expensively as possible and maintaining the option to use cash in transactions.”
The Wall Street Journal first reported the development, highlighting the Treasury’s cost-saving rationale. The Mint’s penny production halt marks a historic shift, as the coin has been a staple of American currency for over two centuries. While the Treasury expects immediate savings, the long-term impact on coin circulation and pricing practices remains uncertain. Congressional action will determine whether the penny’s end becomes permanent.
