US Stops Minting Pennies: What Happens To Yours Now?

The U.S. Mint has halted production of the circulating penny after the Treasury Department concluded new one-cent coins are no longer needed, even as existing pennies remain legal tender and will stay in use for years.

Rising Production Costs Push Penny Off Line

"The Secretary of the Treasury has decided to suspend production of the one-cent coin (penny) upon determining that it is no longer necessary to meet the needs of the United States. The decision was influenced by the rising cost of producing the penny, which has increased from 1.42 cents to 3.69 cents per penny," the Mint says in a penny fact sheet on its public website.

For years, the Mint has reported that it costs more than one cent to strike and distribute each penny, leaving the government with a loss on every new coin.

Treasury Uses Legal Authority To Halt Minting

Officials stress the coin is not being canceled as money. "Yes. The penny remains legal tender and may still be used for transactions," the Mint says. The bureau adds that it expects to save "approximately $56 million per year in production savings" from the suspension.

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Under federal law, the Secretary of the Treasury has the authority to decide how many coins to mint. The Mint explains that, under 31 U.S. Code 5111 and 5112, the Secretary may suspend penny production after finding that new coins "are no longer needed."

Existing Pennies Stay Spendable As Supply Shrinks

Pennies already in circulation will gradually decline in number as they wear out or are misplaced. In fiscal 2024, the Mint says, the penny accounted for 57% of its circulating coin output, or about 3.2 billion coins, before the order took effect.

Consumers can continue spending pennies or depositing them at banks. The Federal Reserve notes there is "no federal statute mandating that a private business, a person, or an organization must accept currency or coins," so individual retailers may decide whether to keep using pennies in cash transactions.

While circulating production is ending, the Mint says it will keep issuing limited commemorative versions of the penny for collectors.

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