US Treasury Plans Halt Penny Production Early 2026

The U.S. Treasury Department has announced plans to cease production of the penny, with the U.S. Mint placing its final order for penny blanks that are expected to run out by early 2026. The penny, costing about 3.7 cents to produce in 2024—nearly four times its face value—is deemed economically inefficient, prompting savings of approximately $56 million annually by ending its manufacture. President Donald Trump directed the Treasury to stop minting pennies, citing the coin's rising production costs and wastefulness. The penny, originally made mostly of copper, is now primarily zinc with a copper coating, and the rising cost of zinc has contributed to increased production expenses. While some defend the penny's utility in charity and small transactions, advocates for eliminating it highlight the financial inefficiency and support legislative moves to end its production. This decision aligns with previous administrations' concerns over the penny's cost-effectiveness and reflects a broader effort toward fiscal prudence.