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After more than 230 years in circulation, the U.S. Treasury Department is officially ending the production of the penny, marking the end of an era for America's smallest denomination coin.
The decision follows years of debate over the penny's value in a modern economy, with the final batch of blanks expected to run out by early 2026. Although the coin will no longer be minted, it will remain legal tender, meaning Americans can still use, save, or deposit their pennies.
Here's what will happen to the 114 billion pennies in circulation
One of the primary reasons for ending production is cost.
It currently takes nearly four cents to produce a single penny, due in part to rising metal prices, especially zinc, the coin's main ingredient.
In 2024 alone, the government lost over $85 million minting roughly 3 billion pennies.
Critics, including former President Donald Trump, have called the practice wasteful, with the U.S. Mint estimating savings of around $56 million annually once production ceases.
So what happens to the estimated 114 billion pennies already in circulation? In short-nothing drastic.
Pennies will still be accepted at retailers and banks across the country, even as they become increasingly scarce.
Just like in Canada, where the penny was phased out in 2012, the U.S. will likely see a slow, natural disappearance of the coin as people continue to stash them in jars, drawers, or forget about them entirely.
For the foreseeable future, retailers will decide on their own when to stop using pennies in cash transactions.
Once banks stop supplying new rolls, many businesses are expected to begin rounding prices to the nearest nickel for cash payments.
However, debit and credit card purchases will still be charged to the exact cent.
According to industry representatives, most retailers will prioritize customer experience during the transition and avoid making a fuss over exact change.
As one retail saying goes, "Never lose a customer over a penny."
Meanwhile, state and local governments will be responsible for offering guidance on how sales taxes should be rounded.
And although some argue that eliminating the penny could affect pricing or impact charitable donations, the shift away from cash in general may soften those concerns.
One thing is clear: while the penny's days of being minted are numbered, its presence in American pockets, purses, and piggy banks isn't going anywhere just yet.