The U.S. Treasury is set to retire the penny by early 2026. Minting each coin now costs roughly 3.7 cents, and in 2024 alone the Mint lost about $85 million producing some three billion pennies.
By ending production of these low-value coins, taxpayers could see immediate savings of around $56 million a year. It’s a move that turns loose change into serious budget sense and slashes a drain on public funds.
President Trump has been vocal about the penny’s price tag. “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” he wrote.
He added, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.” Bipartisan champions—from Trump to former President Obama—have long argued that scrapping the penny makes economic sense. Congress even saw competing bills aimed at rounding off the one-cent coin.
Pennies have jangled in American pockets since 1793, and Abraham Lincoln’s portrait first appeared in 1909. Today there are about 114 billion pennies circulating, yet millions languish in jars or get tossed aside.
With no new blanks on order after May 2025, the existing stock will simply run its course. Over the next several years, pennies will gradually vanish from cash drawers and coin machines alike.
Most shoppers won’t feel a pinch. Digital payments dominate retail, and cash purchases are rare. For the occasional cent-based total, prices will round to the nearest nickel, just as Canada did when it retired its penny in 2012. That means no more awkward penny hunts at the checkout and a faster, smoother experience for everyone handing over cash.
State and local authorities will issue guidance on sales-tax calculations and rounding practices to ensure a seamless transition.
Meanwhile, your collection of well-worn pennies still holds face value, even if it won’t last forever. Explore the full article to learn more about how the phase-out will work and what it means for your pocket change.
