Treasury Makes Final Penny Order
“Grab your coin purse: The U.S. may be on the verge of ditching its penny.” According to The Wall Street Journal, the U.S. Treasury has placed its final order of penny blanks, signaling that the Mint will continue producing one-cent coins only until those blanks run out.
Once that happens, “businesses will have to round up or down prices to the nearest five cents,” a Treasury spokesperson explained.
The Treasury and the U.S. Mint “did not immediately respond to Nexstar’s requests for comment.”
Trump and Lawmakers Pushed for the Change
The move follows earlier efforts from both the executive branch and Congress. The Department of Government Efficiency (DOGE) had previously “set its sights on the penny,” and former President Donald Trump had called the coins “wasteful.”
Senators Jeff Merkley (D-Ore.) and Mike Lee (R-Utah) introduced a bipartisan bill aiming to halt penny production.
“I’m pleased to see the Treasury Department taking a page from my ‘Make Sense, Not Cents Act,’” Lee said. “Each penny costs four cents to make, so cutting this waste will save the American taxpayer over $85 million every year.”
Merkley added: “If President Trump is serious about ending this wasteful spending… he should work with Congress to take up necessary legislation, like my bipartisan bill.”
Why Is the Penny So Costly?
Per U.S. Mint data, “it costs roughly 3.69 cents to make one penny.” Last year marked the 19th consecutive year that both the penny and the nickel “remained above face value” in terms of production cost.
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Looking North: Canada’s Example
Canada eliminated its penny in the early 2010s. At the time, it cost Canada 1.6 cents to produce each coin. Alex Reeves, a Royal Canadian Mint spokesperson, explained that the Mint “worked with financial institutions and charities to begin collecting the nation’s pennies,” which were then melted down to reclaim metals.
After the phase-out, cash purchases were rounded: “a $19.82 purchase becomes $19.80 while $19.83 becomes $19.85.” The U.S. “appears likely to do the same,” per the Treasury.
Are Pennies Now Worth More?
Probably not. “Even someone who brought in a jar of pennies to sell would ‘get about a penny and a half for them,’” said Todd Sandham, a coin dealer in Ontario.
Casey Hackford-Peer of All About Coins in Salt Lake City agreed: “Maybe in 200, 300 years, but not in my lifetime.”
Still, the penny “will also remain legal tender.”
What Happens When You Pay in Cash?
Critics of the change argue there may be consequences. Without pennies, “it would be difficult to, say, give you change on a $19.87 purchase if you pay with a $20.” This could especially affect people who rely on cash.
The Federal Reserve warned in 2022 that ending the penny could trigger “a significant flowback of coin from consumers and businesses seeking to turn in their pennies.” Still, the move could save the Mint “up to $100 million annually.”
What About Nickels?
The situation with nickels is even worse. “In fiscal year 2024, it cost nearly 14 cents to make the five-cent piece.”
Meanwhile, “it costs less than six cents to make a dime,” and “about 15 cents for a quarter,” while a half-dollar costs “nearly 34 cents.”
In Summary:
The U.S. is officially preparing to say goodbye to the penny. Whether this signals broader changes in coinage remains to be seen, but one thing is certain: the cents no longer make sense.
