It may seem impossible: a coin that costs nearly four cents to make. In 2024, each U.S. penny cost about 3.69 cents to produce, resulting in a staggering $85 million loss for the Mint. That figure alone would spark debate. So when the Treasury recently confirmed it will stop minting pennies by early 2026, the conversation swiftly shifted from speculation to certainty.
Related Page: Understanding Lender Requirements for Personal Loans
The penny isn’t going anywhere today. But the final order of penny blanks was placed in May 2025, and once those are used up—expected by early 2026—no new pennies will be produced. The implications affect everyday consumers, local businesses, and community banks alike.
Where Things Stand Now
Here’s what has officially been confirmed:
- In May 2025, the Treasury Department placed its final order for penny blanks, signaling the end of penny production.
- No new pennies will be minted once current blank inventory is exhausted—estimated to be early 2026.
- Pennies produced before that will remain legal tender and circulate until worn or retired.
In short: The clock is ticking. The penny isn’t disappearing immediately, but production is winding down—and that’s official.
Why the Phase‑Out Is Happening
Rising Costs
The cost to mint a penny rose from about 1.3¢ in 2015 to 3.69¢ by 2024, making each coin more expensive to produce than its value.
Economic Waste
The Mint reported losses of over $85 million in a single year—prompting President Trump to call the penny “so wasteful,” and direct the Treasury to stop production.
Changing Behavior
Over 60% of coins, valued at around $14 billion, sit unused in homes, jars, or drawers. Fewer people depend on cash, and pennies rarely circulate in daily commerce.
What Happens When Production Stops
Penny Still Legal Tender
Even after production ends in early 2026, existing pennies remain usable. They’ll gradually vanish from circulation over years—not weeks.
Cash Transactions Will Be Rounded
Just like Canada did in 2012, U.S. retailers will round cash totals to the nearest nickel:
- Dollars ending in 1, 2, 6, or 7₵ round down.
- Totals ending in 3, 4, 8, or 9₵ round up.
- Digital payments remain exact to the penny.
Modest Net Cost to Consumers
Rounding practices may generate consumer costs of around $6 million annually, though the impact per shopper will be minimal.
Spotlight: Data & Economics
- 114 billion pennies are currently in circulation—over $1.1 billion in face value.
- Annual savings from ending production estimated at $56 million.
- Similar countries like Canada, Australia, and New Zealand successfully phased out their pennies with no consumer disruption.
What the Change Means for You
Consumers
- Feel free to save or deposit pennies—they’ll still work in transactions for years.
- Watch how your favorite retailers round totals once penny stock declines.
- Rare pennies (like the 1943 steel or 1909 wheat cent) may hold collector value—but most pennies remain valuable only at face value.
Businesses
- Ensure your POS systems support cash rounding.
- Train staff to explain rounding to customers—clear communication fosters trust.
- Post signage indicating policies for penny handling and rounding.
Talking Points:
Key Arguments For and Against
Reasons supporting the phase‑out
- Saves the federal government $56 million per year.
- Reduces labor and handling costs for businesses and banks.
- Reflects a modern shift to digital payments.
- Environmentally smart—fewer coins means fewer raw‑material impacts.
Points raised by opponents
- Potential consumer cost bias if rounding trends upward.
- Rounding may disproportionately affect cash-dependent, low-income consumers.
- Some value the penny’s historical and symbolic significance, or its role in charity and psychology.
- Nickel production—also costly—may face scrutiny next.
Your Next Steps as the Change Approaches
- Stay informed. Policy updates and state‑level guidance on rounding rules are expected over time.
- Update systems. POS and accounting processes should be ready for rounding policies.
- Educate customers and staff. Help everyone understand the change before it happens.
- Manage coin inventory in branches and ATMs—start tapering orders of pennies now.
The Penny Going Away
Yes. It’s no longer hypothetical: the U.S. Treasury has officially determined that penny production will end in early 2026. While the coin won't disappear fast, the shift is real—and manageable.
For individuals and businesses, the takeaway is clear: be ready, be proactive, and communicate clearly. The penny may seem small, but this phase‑out is a change worth planning for.
If you'd like a shorter summary for newsletters, a FAQ packet for customer-facing use, or suggested signage language for branches, I’m happy to help.