The U.S. Mint struck its final circulating penny on Wednesday afternoon, ending production of a coin that cost nearly four cents to make despite its one-cent value.
Treasury Secretary Scott Bessent and Treasurer Brandon Beach oversaw the last minting in Philadelphia, where pennies have been produced since 1793. President Donald Trump directed the phaseout in February via social media, calling the expense wasteful.
“For far too long the United States has minted pennies which literally cost us more than 2 cents,” he wrote. “This is so wasteful!”
According to the U.S. Treasury, the cost to produce each penny rose nearly 20% in fiscal year 2024 to 3.69 cents per coin. The department projects annual savings of $56 million from halting production, which reached 3.2 billion pennies last fiscal year. Pennies will remain legal tender, with an estimated 300 billion still in circulation.
The U.S. Mint began winding down production of the penny in February, and by Labor Day, penny shortages were becoming a problem, prompting varied responses from retailers. Kwik Trip, a Midwest convenience store chain, rounds cash purchases down where pennies are unavailable.
“There’s no way that we wanted to charge (customers) an extra 2 cents because we just didn’t think that was fair,” spokesperson John McHugh said, CNN reported. “I mean, it’s not their fault that there’s a penny shortage.”
The policy will cost the chain millions annually.
A Federal Reserve Bank of Richmond study estimates rounding up to the nearest nickel would cost consumers $6 million yearly, or about five cents per household.
Four states — Delaware, Connecticut, Michigan, and Oregon — plus cities including New York and Philadelphia, require exact change. The SNAP program mandates recipients pay no more than cash customers, complicating discounts for rounding down.
“We desperately need legislation that allows rounding so retailers can make change for these customers,” said Jeff Lenard, spokesperson for the National Association of Convenience Stores, per CNN, “Rounding down on all transactions presents several challenges beyond the loss of an average of 2 cents per transaction.”
Trade groups have urged Congress to adopt a national rounding standard to avoid lawsuits. A bipartisan bill passed a House committee in July but awaits floor action.
Mark Weller, executive director of Americans for Common Cents, described the phasing out of the penny as “a bit chaotic.”
“We had a social media post (by Trump) during Super Bowl Sunday, but no real plan for what retailers would have to do,” he told CNN.
First minted in 1787 and featuring Abraham Lincoln since 1909, the penny once bought candy or paid for parking meters, but now it lingers mostly in coin jars and junk drawers.
Joe Ditler, a 74-year-old writer from Colorado, keeps childhood pennies in a cigar box as souvenirs.
“They bring back memories that have stayed with me all my life,” he said, per CNN. “The penny has had a wonderful life. But it’s probably time for it to go away.”
The U.S. Mint has plans to produce limited quantities of ‘collector-version’ pennies in the future, according to Politico.
