The End of the Penny: US Mint to Cease Production by 2026
Posted By RichC on May 24, 2025
The U.S. penny, a staple of American currency since 1787, will no longer be minted after 2026, as announced by the Treasury Department. The decision comes as the cost of producing a penny has soared to 3.7 cents, far exceeding its face value. With 114 billion pennies in circulation, the move aims to cut losses for the U.S. Mint, which reported an $85 million deficit on penny production last year.
The phase-out, backed by President Trump and the Department of Government Efficiency, reflects the penny’s diminishing relevance. Inflation has eroded its purchasing power, and many businesses already round transactions to the nearest nickel. However, the transition may pose challenges, as businesses will need to adjust pricing and cash-handling practices, potentially rounding transactions up or down.
The decision has sparked mixed reactions. Some see it as a practical step to eliminate an inefficient coin, while others, including collectors and small businesses, worry about the economic and cultural impact. The U.S. Mint is preparing for the change by planning commemorative coin designs for the 2026 Semiquincentennial, marking 250 years since the Declaration of Independence.
As the penny fades, its legacy as a symbol of American commerce endures, but its practical use in modern transactions appears to have reached its end.
Source: Wall Street Journal
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