The era of penny production in the United States is slowly coming to an end, but Americans will still be seeing one-cent coins in their change for the foreseeable future.
The U.S. Treasury Department announced on May 22 that it will begin phasing out the minting of pennies after more than two centuries of production.
Despite this change, the penny will remain legal tender, and retailers will continue to use them in cash transactions until supplies run low.
- CNN: US to Discontinue Penny Production
- WSJ: Treasury to End Penny Minting by 2026
- CNN: Trump-Era Policy to Halt Penny Production
Why the Penny Is Being Phased Out
According to the Treasury Department, the decision to wind down penny production is driven by economics. The department stated that pennies are “severely underutilized,” with an estimated 114 billions of them sitting idle in jars, drawers, or forgotten containers across the country.
That stockpile could theoretically form a 13-story-high cube of copper and zinc.
“There’s a saying in retail, ‘Never lose a customer over a penny,’” said Jeff Lenard, spokesperson for the National Association of Convenience Stores. “I never really thought of it in these terms, but it applies even more here.”
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