The US Treasury has confirmed plans to phase out the penny, with one-cent coins set to cease production starting next year.
This decision follows remarks made by President Donald Trump on social media three months earlier, where he expressed concerns over budget waste, stating, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.” He emphasized that the penny was “so wasteful.”
Currently, there are about 114 billion pennies in circulation, with 3.2 billion minted just last year. However, the US Mint’s annual report indicates that the cost of producing and distributing a one-cent coin was 3.69 cents in 2024, marking a significant increase from the previous year. The Treasury anticipates immediate annual savings of $56 million in material costs by eliminating the penny.
The US is not alone in this move; Canada discontinued its penny in 2012 due to similar concerns regarding costs and declining usage. Additionally, Trump has also directed the federal government to phase out the use of paper cheques.