Penny No More: U.S. Pulls the Plug on Copper Coin
The U.S. is halting penny production by early 2026 due to high costs, with bipartisan support. The transition means prices will round to the nearest nickel. The move will save $56 million annually, although debates continue over the penny's value in commerce and charity.
The federal government, prompted by bipartisan support, is set to halt the production of the penny, the lowest-denomination U.S. currency, mainly due to cost concerns. This initiative was outlined by the Treasury Department recently.
Reports confirm that the Treasury has placed its final order for blank pennies and expects to cease their distribution by 2026. The directive came after President Donald Trump instructed Treasury Secretary Scott Bessent to end the coin's production, deeming it "wasteful".
With the elimination of the penny, businesses will need to round cash transactions to the nearest nickel. Recent assessments by the Treasury highlight a cost increase for minting pennies, leading to anticipated savings of $56 million annually.
(With inputs from agencies.)
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