U.S. Treasury plans to end penny production by 2026
- Production costs for the penny have significantly increased, making it financially unviable.
- The U.S. Treasury plans to stop penny production after exhausting the last batch of blanks, saving taxpayers millions.
- This decision reflects a broader trend towards eliminating low-value coins in circulation.
In a significant shift in currency policy, the U.S. Treasury Department announced it will cease production of new one-cent coins by early 2026. This decision follows a prolonged debate regarding the high manufacturing costs associated with pennies, which have surged from 1.3 cents to 3.69 cents each over the past decade. President Donald Trump, pointing to the wastefulness of spending taxpayer money on producing pennies, directed the Treasury to stop minting this coin. The final batch of blanks needed for penny production has already been ordered. This policy change aligns with moves from other nations like Canada, which eliminated their one-cent coin in 2012. The expected savings from halting penny production are estimated to be around $56 million annually, although it will take time for businesses and consumers to adjust to the anticipated rounding rules they will need to adopt when pennies are no longer produced.