Are They Stopping U.S. Penny Production?

The U.S. penny, a familiar part of American commerce, has been a constant presence in daily transactions for generations. Despite its small denomination, this one-cent coin often sparks public discussion and curiosity regarding its continued place in the nation’s currency system. Its widespread presence highlights its enduring, yet sometimes debated, role. Recurring questions about its future reflect a broader interest in the practicalities and economics of coinage.

Current Status of Penny Production

The U.S. Treasury Department announced in May 2025 a plan to halt the manufacturing of new pennies. Production is slated to cease once the existing supply of penny blanks is exhausted, anticipated by early 2026. This decision follows President Donald Trump’s directive in February 2025 to stop minting the one-cent coin, citing its high production costs. Despite the cessation of new production, pennies will remain legal tender and continue to circulate, as only Congress holds the authority to formally eliminate a denomination from U.S. currency.

In fiscal year 2024, the U.S. Mint produced approximately 3.2 billion pennies for circulation. This volume represented a significant portion of the total coins minted annually. An estimated 240 billion to 250 billion pennies are currently in circulation across the United States. The decision to end production addresses the financial inefficiency of minting the coin.

The Cost of Producing Pennies

The economic viability of the penny has been a subject of concern, due to its production cost consistently exceeding its face value. In fiscal year 2024, the U.S. Mint incurred an average cost of 3.69 cents to produce each one-cent coin. This marks the nineteenth consecutive year the cost to make a penny has been higher than one cent. This discrepancy results in the government losing money on every penny manufactured, a situation known as negative seigniorage.

The composition of the modern penny contributes to rising costs. Since 1982, pennies have been made primarily of zinc (97.5%) with a thin plating of copper (2.5%). Fluctuations in the price of these raw materials, particularly zinc, have driven up manufacturing expenses. In fiscal year 2024, the U.S. Mint reported a loss of over $85 million from penny production.

Past Discussions on Eliminating the Penny

Discussions surrounding the elimination of the U.S. penny are not new, reflecting a debate spanning several decades. Concerns about the coin’s production cost and diminishing purchasing power have frequently prompted legislative proposals. For example, in 1990, Representative Jim Kolbe introduced the Price Rounding Act, aiming to eliminate the penny for cash transactions. He continued these efforts with subsequent bills, including the Legal Tender Modernization Act in 2001 and the COIN Act in 2006, though none were enacted.

More recently, in 2017, Senators John McCain and Mike Enzi introduced the Currency Optimization, Innovation, and National Savings (COINS) Act, which proposed a ten-year suspension of penny minting to allow for further study. Various bills introduced in 2025, such as the Common Cents Act and the Make Sense Not Cents Act, also sought to formally end or suspend penny production. Historically, the U.S. has eliminated other low-denomination coins, such as the half-cent coin in 1857, when its purchasing power was significantly higher than that of a modern penny. These discussions highlight a consistent interest in optimizing the nation’s coinage system.