In what will mark the end of an era, a historic U.S. coin is about to be phased out as the Treasury Department will cease production of the penny, a decision set in motion by President Donald Trump to curb government waste.
See the tweet below!
The move comes as part of a larger effort to cut unnecessary expenses.
Rising production costs have plagued the penny, with each one costing 3.69 cents to produce.
This inefficiency prompted President Trump to halt new penny production back in February.
“Rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump said, advocating for greater fiscal responsibility.
With over 114 billion pennies in circulation, the halt will save an estimated $56 million annually.
The demand for pennies has decreased dramatically with the rise of digital payments.
Less than 20% of transactions are cash-based, as more Americans favor cards and apps over pocket change.
This shift to a digital economy has made the penny even less relevant.
Despite this phase-out, pennies will remain legal tender.
Shoppers may see stores rounding prices to the nearest nickel, but with more people using cards, the impact is expected to be minimal.
Treasury Secretary Scott Bessent has suggested altering the nickel’s composition to cut costs and break even.
The United States is not alone in its decision to scrap its one-cent coin. Countries like Canada, New Zealand, and Australia have already done the same.
These nations have adapted to doing away with the tiniest denomination with little disruption.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump expressed.
Economic experts like Rep. John Rose have pointed out that without pennies, the demand for nickels could increase.
While nickels also cost more to produce than their face value, Treasury Secretary Bessent remains optimistic about potential savings with composition changes.
The end of penny production underscores America’s move towards a streamlined, cost-effective currency system.
While pennies may soon become a relic of the past, the decision sets a precedent for future cost-saving measures in U.S. coin production.
It’s a shift that many fiscal conservatives will likely welcome as a step towards eliminating unnecessary government expenses.
Goodbye to the Penny! Treasury Department announces plan to phase out the coin https://t.co/0O3emvzWki pic.twitter.com/Oe5ix2mKvN
— The Independent (@Independent) May 23, 2025
