U.S. Treasury to End Production of Pennies Amid Rising Costs

NEW YORK, New York – May 22, 2025 – The U.S. Treasury announced it will stop minting new pennies, citing rising production costs that have exceeded the coin’s face value. This decision marks a significant change in U.S. currency circulation.

The Treasury confirmed that it made its final order of penny blanks earlier this month. Going forward, pennies will only be produced until the existing inventory of blanks is exhausted. Consumers can still use pennies for transactions, but cash purchases will be rounded to the nearest nickel without new coins entering circulation.

President Donald Trump revealed his directive to end penny production earlier this year, highlighting that the cost to produce a penny now stands at approximately 3.7 cents—significantly higher than its one-cent value. Trump stated, “This is so wasteful! Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

Despite Trump’s push to eliminate the penny, some analysts indicated the impact may be less significant than projected. While the minting of pennies has cost taxpayers, producing nickels is even more expensive; it costs over 11 cents to make a nickel. Last fiscal year, the Mint reduced nickel production significantly, minting only 202 million, a major drop from previous years.

Supporters of eliminating the penny argue it would streamline cash transactions. The National Association of Convenience Stores has previously indicated support for getting rid of the penny, stating that such a measure could improve customer service times. Retailers see pennies as cumbersome in busy transactions.

Other countries, like Canada, have already eliminated their lowest denomination coin, discontinuing pennies altogether in 2013. The U.S. government reportedly produces numerous pennies that do not remain in circulation, as many are stored away or lost.

Mark Weller, executive director of Americans for Common Cents, stated, “In most countries, the lowest denomination coin becomes the most minted coin. The potential end of the penny could complicate cash transactions.” This bold step by treasury officials could signify a shift in how the public engages with cash transactions moving forward.