In a historic move marking the end of an era, the United States Mint has officially ceased production of the penny, with the final batch struck on Wednesday. This decision concludes the 230-year-long run of the one-cent coin, a staple of American currency since 1793.
Why Did the Penny Get Discontinued?
The primary driver behind this monumental decision is simple economics. According to the Associated Press, the cost of producing a single penny has skyrocketed to approximately four cents—four times its face value. Rising commodity prices have eroded the coin's utility, making its production a financially unsustainable endeavour for the US government.
The US Mint reported a staggering loss of $85.3 million in the 2024 fiscal year alone, attributed to producing 3.2 billion pennies. This significant financial drain ultimately led to the verdict to halt production permanently.
A Ceremonial Farewell and a Look Back
Treasurer Brandon Beach presided over the ceremonial striking of the last penny at the US Mint in Philadelphia. “God bless America, and we’re going to save the taxpayers $56 million,” he declared. The final coins from this batch are slated for auction and are expected to fetch high prices from eager collectors.
The penny's rich history is filled with fascinating details. Its official name is the “one-cent piece,” though Americans habitually called it a penny. The original design, known as the Fugio cent, was created by Benjamin Franklin and featured a sun and a sundial with the motto “Mind Your Business.” It was one of the very first coins produced by the US Mint after its establishment in 1792.
Other interesting facts include its composition change to zinc-coated steel during World War II and the fact that US military bases overseas stopped using it in the 1980s, rounding transactions to the nearest five cents instead.
What Happens to Existing Pennies Now?
While production has stopped, the billions of pennies already in circulation will remain legal tender. However, their practical use has diminished greatly. As President Donald Trump noted in an online post earlier this year, “For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!”
With no new pennies entering the economy, these coins are set to transform from everyday currency into nostalgic relics of a bygone age. The last time a US coin denomination was discontinued was the half-cent coin in 1857, making this a truly historic event for American numismatics and public finance.
