Over the past decade, the cost of producing a penny has risen from 1.3 cents to 3.69 cents. Rising costs revealed the problem.
U.S. Mint presses final cent after more than 200 years
America’s last penny was minted at the United States Mint in Philadelphia, ending coin production that began in 1793 and ended on November 12.
For more than two centuries, Americans have trusted the penny as part of their everyday currency. However, once President Donald Trump took office, he noticed a problem: demand for pennies was decreasing while production costs were rising. This placed an increasingly unnecessary financial burden on American families.
To save American taxpayers hundreds of millions of dollars, President Trump, along with Treasury Secretary Scott Bessent, made the decision to end production of the penny.
A historic decision for American consumers
Now, the historic American penny will no longer be produced.
To be clear, the penny remains legal tender. If you have a dime in your pocket, I recommend using it.
So why make this decision now?
Over the past decade, the cost of producing a penny has risen from 1.3 cents to 3.69 cents. This rising cost, along with the modernization of the market and the decline in demand for its currency units, revealed the problem.
Americans simply weren’t getting their money’s worth.
By ceasing American Penny production, taxpayers will save approximately $56 million annually in materials costs alone, not to mention savings in facility usage and energy consumption.
As stewards of Americans’ money, the federal government has a duty to manage its resources responsibly. Here at Treasury, we take that responsibility seriously.
It no longer makes economic sense to continue minting pennies, and ending their production reflects the sound, common sense fiscal management that continues to be a hallmark of President Trump’s administration.
Stopping Penny Production Puts Taxpayers First
As a public servant, it is my responsibility to manage public resources carefully and transparently. Every time we save money on production, less money is taken out of the budget and ultimately benefits taxpayers.
Ending the production of the penny will require making difficult decisions to avoid increasingly unnecessary spending and modernizing the monetary system to reflect current economic realities.
At Treasury, we respect tradition. But tradition in itself is not enough to justify the ongoing losses.
Government must evolve when costs and technology require it. President Trump and his administration are working day and night to put American taxpayers first and ensure that America remains the world’s predominant superpower.
To achieve this, it is necessary to improve the fiscal system, including currency production.
How will everyday financial transactions be affected?
Some business owners say fewer pennies in circulation are creating new problems. For example, some fast food chains have already started rounding cash payments to the nearest 5 cents. These developments reflect the healthy adaptation of the market and the evolution of payment habits.
Our approach predicts that as the number of pennies minted decreases, the coin will gradually be withdrawn from circulation. In the meantime, we remain in close contact with the Federal Reserve, commercial banks, retailers and the public to ease the transition.
We expect companies to apply rounding practices in a fair, consistent and transparent manner. To support this transition, Treasury is working closely with POS system providers to ensure they are equipped with systems that accurately handle rounding and correctly calculate sales tax.
In the meantime, please consult your state’s tax authorities for specific guidelines and updates, and contact your state and local representatives for further action.
Canada, Australia and New Zealand have already successfully phased out the penny, demonstrating that businesses and consumers value fair and transparent rounding practices.
These international examples give us confidence that our country too will succeed.
worth the last two cents
Dear American Citizen: Your penny remains valid, your change remains safe, and your Treasury will act in the best interest of the country. Once essential, pennies have become more of a cost burden than a cost-effective tool.
By taking this step, we will protect taxpayer money, streamline operations, and align our currency with the way Americans use it today. The Treasury Department remains committed to maintaining confidence in our currency and building a financial system that puts Americans first.
Brandon Beach is a United States Treasurer.
