The U.S. Mint halted penny production to cut costs and address the declining relevance of the one-cent coin, which previously held value for small purchases. The final pennies were minted in Philadelphia, where the production of the nation’s lowest denomination coins has occurred since 1793, following the Coinage Act passage a year earlier. U.S. Treasurer Brandon Beach emphasized savings to taxpayers of $56 million before striking the last penny.
Although pennies remain legal tender, no new ones will be minted. This move by the U.S. follows Canada’s decision to cease penny production 13 years ago. The U.S. had not discontinued a coin since the half-cent in 1857, according to Beach.
President Donald Trump mandated the end of penny production due to rising costs nearing four cents per penny and the diminishing practicality of the one-cent value. Despite billions of pennies in circulation, they play a minor role in 21st-century transactions.
While some Americans cherish pennies for their sentimental or collectible value, retailers faced challenges as production neared its end. Concerns were raised over the abrupt phase-out and lack of government guidance on transaction handling. Some retailers adjusted prices to avoid rounding up, while others encouraged customers to provide exact change or offered incentives like free items for penny piles.
Banks started rationing penny supplies, highlighting the irony of addressing a perceived oversupply issue. Despite concerns, pennies still hold a favorable production cost-to-value ratio compared to nickels, which cost nearly 14 cents to produce. Dimes cost under six cents, and quarters almost 15 cents to mint.
In 1793, a penny could purchase basic items like biscuits or candles. Today, many pennies are stored away, serving as collectibles or historical artifacts tracing back over two centuries. Historians view them as essential records reflecting societal values, beliefs, and commemorations of significant figures.
