The Mint announces: Production of these coins has been halted

A 232-year production era has come to an end for the U.S. 1-cent coin, known as the penny. The U.S. Mint has ceased the production of 1-cent coins because the cost of production and distribution has far exceeded the coin's nominal value.

According to the U.S. Mint's annual report, the cost to produce and distribute a single penny rose to 3.69 cents in 2024. This figure represents a 20.2 percent increase compared to the 3.07-cent cost recorded the previous year. It was stated that the Treasury Department incurred a loss of 85.3 million dollars in 2024 alone due to penny production.

THE LAST PENNY MINTED WITH A CEREMONY

As part of the official end of production, a symbolic ceremony was held at the U.S. Mint in Philadelphia on November 12, 2025. Penny production was officially completed when Under Secretary of the Treasury Brandon Beach minted the final 1-cent coin at the ceremony.

The decision does not mean that the 1-cent coin has been completely removed from circulation. According to Treasury Department data, there are still approximately 114 billion pennies in the market. These coins will retain their status as legal tender.

One of the primary concerns raised by those opposing the removal of the penny was the possibility of prices being rounded up in cash transactions. However, research on this subject concluded that rounding up and down in cash payments generally balances out and does not create a significant additional cost for consumers.

With the Treasury halting production, an annual direct savings of approximately 56 million dollars is expected in raw material expenses. On the other hand, the Federal Reserve Bank of Richmond warns that the removal of the 1-cent coin from production could increase demand for the 5-cent coin, or nickel. It is reported that the 2024 production cost for a nickel was 13.8 cents, which indicates a level more than double its nominal value.

News Source: 12punto