Why the US Mint’s Penny Phase-Out Could Change Your Change: What You Need to Know!

WASHINGTON (AP) — The U.S. Mint is wrapping up penny production. They’ve placed their final order for penny blanks and will cease making the coin once those run out, a Treasury official confirmed. This decision is projected to save taxpayers around $56 million each year by cutting down material costs.

Back in February, former President Donald Trump announced plans to stop penny production. He highlighted that it costs more than 2 cents to make each penny, calling it wasteful. He instructed his Treasury Secretary to halt their creation.

Supporters of ending the penny point to its production cost, which has climbed to nearly 4 cents per penny, according to the U.S. Mint. They argue that the penny has limited practical use in daily transactions. However, some still value it for small charity donations and note that it’s cheaper to produce than a nickel, which costs around 14 cents to mint.

The Wall Street Journal first broke this story. Interestingly, pennies are the most minted U.S. coins, with the Mint producing 3.2 billion of them last year, accounting for more than half of all newly minted coins.

While Congress holds the power to finalize this change legally, past attempts to abolish the penny haven’t succeeded. This year, two bipartisan bills aimed at ending penny production were introduced. Senators Mike Lee (R-Utah) and Jeff Merkley (D-Ore.) proposed the Make Sense Not Cents Act, while Representatives Lisa McClain (R-Mich.) and Robert Garcia (D-Calif.) joined Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) to introduce the Common Cents Act in April.

This shift reflects growing sentiment against low-denomination currency, mirroring trends in countries like Canada and Australia, which have eliminated their equivalent coins. Many citizens are adapting to a cashless world, suggesting that the penny may soon be just a memory, rather than a necessity.

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