The United States will stop producing new pennies in early next year, according to the U.S. Treasury Department. The decision is expected to impact how businesses and consumers handle prices, particularly those who rely on cash.
Prior to this move, President Trump directed the Treasury to halt penny production in February 2023. The Mint’s last order of blank templates was placed in November, marking the end of penny production.
The cost of producing a penny increased by 20% in the 2024 fiscal year, reaching 3.69 cents per coin. The Mint reported losing $85.3 million on the nearly 3.2 billion pennies produced in the 2024 fiscal year. Stopping production is expected to save the government $56 million annually.
Businesses will need to adjust their pricing methods to round prices to the nearest five cents when necessary, as there won’t be enough pennies available for everyday transactions. Cashless transactions will still be priced at exact change. Retailers and state governments are advised to provide guidance on sales tax collection to minimize any disruption.
The discontinuation of penny production may also impact consumer behavior, particularly among low-income and older Americans who rely heavily on cash. Some experts argue that rounding prices up rather than down could eliminate demand for pennies and reduce the financial burden associated with their production.
Source: https://www.axios.com/2025/05/24/treasury-penny-production-trump-shopping-change