The Trump administration has confirmed that the US Mint will stop producing pennies when its current stock runs out. The decision comes after a sharp increase in production costs for pennies, which have risen by 20% in 2024. By phasing out the penny, the Treasury expects to save $56 million annually on reduced material costs.
President Donald Trump announced the move in February, citing the high production cost of pennies, which now exceed 2 cents per coin. The US Mint currently produces about 114 billion pennies, valued at $1.14 billion, but most are underutilized.
Advocates for abolishing the penny point to its high production cost and limited utility, while fans argue that it remains a useful coin in charity drives and has relatively low production costs compared to other coins. However, experts warn that simply stopping penny production could lead to an increase in demand for more expensive nickels, which are now produced at 14 cents per coin.
Congress can make the move permanent through law, but bills introduced this year aim to do just that. Advocates, such as the Americans for Common Cents group, suggest finding ways to reduce nickel production costs and maintaining affordable cash transactions.
Source: https://apnews.com/article/us-mint-treasury-department-penny-end-production-daf6367d7e8d31d6783720d5d4667115