Citing high production costs and inefficiency, President Trump and the Treasury move to end the penny’s 237-year run, with final batches already in motion and full phase-out planned by 2026.
The United States is officially preparing to phase out the penny. Earlier this month, the U.S. Treasury Department placed its final order for penny blanks, marking a decisive step toward ending production of the one-cent coin that has been in use since 1787.
This action follows a directive issued by President Donald Trump on February 9, instructing Treasury Secretary Scott Bessent to halt the minting of new pennies. Trump announced the decision on Truth Social, saying, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
Despite often being seen as a political lightning rod, the move to eliminate the penny has enjoyed rare bipartisan support. Both President Trump and former President Barack Obama have previously advocated for its removal, citing inefficiency and unnecessary federal spending. Multiple congressional efforts have also called for the coin’s retirement.
In fact, Trump may have understated the cost. Over the past decade, the cost of producing a single penny has climbed from 1.3 cents to 3.7 cents. The U.S. Mint estimates it lost around $85 million minting 3 billion pennies in 2024 alone.
Public behavior also supports the move. A 2024 Wall Street Journal report found Americans discard or forget about as much as $68 million in coins annually, often left in jars, cars, and drawers instead of re-entering circulation.
Under the current plan, new pennies will cease entering circulation in early 2026 once the final batch of blanks has been used. While it may take years for the penny to vanish completely from public use, its absence is unlikely to cause significant disruption. With digital payments dominating retail and consumer activity, the coin’s disappearance will be largely symbolic.
For the occasional cash transaction, experts expect the U.S. to follow Canada’s lead. After Canada eliminated its penny in 2012, transactions were simply rounded to the nearest five cents. The U.S. Treasury has stated that local and state governments will guide retailers on sales tax collection protocols.
The penny has a long legacy. First minted in 1787, the early coin featured the image of the goddess Liberty. In 1909, it adopted the now-iconic profile of President Abraham Lincoln to commemorate the 100th anniversary of his birth. While originally made of solid copper, today’s pennies are composed of 97.5% zinc and just 2.5% copper.
According to the Treasury, approximately 114 billion pennies are currently in circulation across the U.S. Even as production ends, it will likely take years before they truly disappear from everyday life.