Are Pennies Still Being Made by the U.S. Mint?

The U.S. penny, a familiar part of American currency, often sparks public curiosity about its continued existence and production. This small denomination coin holds a unique place in daily transactions and discussions about economic efficiency. As the financial landscape evolves, questions frequently arise regarding the penny’s role and future.

Current Status of Penny Production

The U.S. Mint continues to produce pennies, though a significant shift is underway regarding their future. In May 2025, the U.S. Treasury Department announced plans to halt penny production, with the U.S. Mint placing its final order for penny blanks. Production is slated to cease once these blanks are exhausted, likely in early 2026. Existing pennies will remain legal tender and continue to circulate.

Approximately 3.2 billion pennies were produced in 2024. These coins are primarily composed of 97.5% zinc, with a thin coating of 2.5% copper, giving them their characteristic reddish appearance. This composition has been in place since 1982 to manage production costs.

Economic Realities of Penny Production

The financial considerations surrounding penny production have long been a subject of debate. In 2024, it cost the U.S. Mint approximately 3.69 cents to produce a single penny, which is significantly more than its one-cent face value. This marks the nineteenth consecutive year that the cost of producing a penny has exceeded its worth.

This situation is known as “negative seigniorage,” meaning the government incurs a financial loss on each coin produced. In 2024, the U.S. Mint reported an estimated loss of $85.3 million from the production of pennies. The primary drivers of this cost include raw material expenses, particularly the price of zinc, which has more than doubled since 2000. Manufacturing expenses, including labor, administration, overhead, and distribution through the Federal Reserve, also contribute to the overall cost.

Historical Discussions Regarding the Penny

Discussions about the penny’s utility and potential elimination have a long history in the United States. Arguments for discontinuing the coin often cite its diminished purchasing power due to inflation. Between 1900 and 2022, the penny’s purchasing power decreased by more than thirtyfold.

Legislators have introduced various bills over the decades aimed at phasing out the penny. For instance, Representative Jim Kolbe introduced several proposals, including the Price Rounding Act of 1989 and the Legal Tender Modernization Act of 2001. More recently, Senators John McCain and Mike Enzi introduced the C.O.I.N.S. Act of 2017, which sought to halt penny minting for a decade and study its permanent cessation. These efforts reflect recurring concerns about the coin’s economic inefficiency and the resources expended on its production.