The U.S. Treasury announced plans to phase out the penny, stopping new production in the near future. The decision comes after years of bipartisan support and growing concerns over rising production costs. According to the Treasury, making a penny now costs 20% more than it did in 2024, with a one-year loss of over $85 million.
The cost increase is attributed to higher production expenses and materials. To save taxpayers $56 million annually, the U.S. Mint will halt penny production once all existing blanks are used up. The move follows similar calls from high-profile figures, including President Donald Trump and Elon Musk, who argued that producing pennies was no longer economically viable.
Although the penny phase-out is expected to take some time, users can still use their remaining coins for now. However, businesses may eventually be forced to round prices up to the nearest nickel due to dwindling stockpiles.
Source: https://www.fastcompany.com/91339708/penny-us-treasury-to-stop-minting-pennies-how-math-adds-up-one-cent-coin