WASHINGTON – May 24,2024 –
The U.S. Treasury Department is ceasing penny production, marking the end of an era for the one-cent coin. This decision,impacting the American monetary system,follows the final order of penny blanks by the U.S. mint. Cost factors contributed to the demise of the penny, however consumers can still use the coin. Authorities forecast a gradual disuse of the penny, and further information will be revealed in due course.
penny Pinching No More: Us Treasury Halts Production
Table of Contents
the era of the penny is drawing to a close. the u.s. treasury department has announced it will cease production of the one-cent coin, signaling a significant shift in american currency [[2]].
key takeaways
- the u.s. mint has made its final order of penny blanks [[2]].
- the u.s. treasury department confirmed plans to stop producing the coin once the current supply of blanks is exhausted [[2]].
- consumers can still use pennies until they gradually disappear from circulation.
- businesses may need to round transactions to the nearest five cents.
the final countdown
the u.s. government made its final order of penny blanks this month, marking the first step to end production of the one-cent coin [[3]]. the united states mint will cease manufacturing the coins once the final inventory of penny blanks is depleted.
a costly endeavor
president donald trump initially ordered the u.s. mint to halt penny production, citing its high production cost. according to the u.s. mint, it costs up to 4 cents to make just one penny.
it costs up to 4 cents to make just one penny.
u.s. mint
this economic reality has fueled the decision to discontinue the coin’s production [[1]].
a historical viewpoint
the penny has been a part of the u.s.currency landscape for approximately 233 years, first introduced in 1792. the last pennies to enter circulation are expected to do so in early 2026.
impact on businesses and consumers
the treasury department assures that consumers can continue using pennies for purchases until the existing supply diminishes. however, with about 114 billion pennies currently in circulation, the transition will be gradual.
consumers will continue to be able to use pennies to pay for purchases… that is, until the copper-plated coins run out.
u.s. treasury department
the department anticipates that making exact change may become challenging as the number of pennies decreases.businesses will be instructed to start rounding up or down to the nearest 5 cents
when this occurs.
faq: the end of the penny
- can i still use pennies?
- yes, you can use pennies until they are no longer in circulation.
- what will happen to prices?
- businesses may round prices to the nearest five cents.
- when will pennies disappear entirely?
- the last pennies are expected to enter circulation in early 2026, but it will take time for them to disappear entirely.
- why is the penny being discontinued?
- the cost to produce a penny is higher than its face value.
