US Treasury Plans Penny Production Phase-Out Starting 2026

The U.S. Treasury Department, under President Donald Trump's directive, will end the production of pennies by early 2026 due to the coin costing more to make than its face value, with each penny costing about 3.69 cents to produce. This decision follows a trend of declining cash usage in the U.S., as more Americans prefer electronic payments. The U.S. Mint has placed its final order of penny blanks and expects to save $56 million annually by halting penny production. While the penny is the most produced coin, with 114 billion in circulation, advocates note its continued use in charity and coin collections, though some experts warn that eliminating the penny could increase costs due to reliance on the more expensive nickel. The phase-out reflects broader historical shifts in U.S. coinage and economic changes, including inflation and evolving payment habits. The move is seen as a cost-saving measure but also marks the end of an era for a coin that has been part of American currency since the 18th century.