The U.S. Is Saying Goodbye to the Penny

The U.S. Treasury Department has confirmed it will phase out the penny coin, officially ending the production of the one-cent piece in 2026. The decision follows years of public and political debate over the coin’s relevance and cost, as production expenses have steadily climbed to 3.69 cents per penny, nearly four times its face value.

The U.S. Mint currently holds enough penny blanks to continue manufacturing temporarily, but no new orders will be made.

Originally minted in 1793 and featuring President Abraham Lincoln since 1909, the penny has long been a symbol of American currency, but its usefulness has sharply declined. Critics cite environmental waste and inefficiency, while supporters argue the coin helps control prices and supports charitable fundraising.

The final decision came after President Donald Trump instructed the Treasury earlier this year to stop producing the coins, calling them “wasteful.” The move is expected to save the federal government roughly $56 million annually.

Businesses will begin rounding cash transactions to the nearest five cents, similar to systems in Canada and other countries that have already retired low-denomination coins. With 114 billion pennies still in circulation, Americans are being urged to deposit or donate them before they lose legal tender status.