When Will Pennies Be Officially Discontinued? Find out All the Details
It’s a sad day for coin collectors who regularly collect pennies as a hobby or as a money saving technique.
Published May 23 2025, 12:36 p.m. ET
They may not get the love that other forms of money do, but there is something to be said for the usefulness of the penny that often comes in hand when you least expect it — unfortunately, its days are numbered, as the penny will officially be a thing of the past when it is discontinued.
It’s a sad day for coin collectors who regularly collect pennies as a hobby or as a money saving technique, as the debate and speculation about the future of the coin has come to an official resolution.
When will pennies be officially discontinued?
On Thursday, May 22, the U.S. Treasury formally announced that as part of its phase-out plan, it would cease production of the penny and now new ones would be made, according to CNN.
Per a Treasury spokesperson, the final order of penny blanks was made this month, and the United States Mint said manufacturing of pennies will continue until inventory runs out.
For now, pennies can still be used for purchases, but once they are completely out of circulation, businesses will be required to round up or down to the nearest nickel for transactions.
What is the reasoning behind the decision?
The decision isn’t shocking as Trump said in February that he had plans to do away with the penny, which has been in use in America for close to 250 years.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation's budget, even if it’s a penny at a time,” he wrote on Truth Social.
According to ABC News, getting rid of the penny is set to save the Treasury Department $56 million in annual reduced material costs. "Additional savings will accrue as facility usage is adjusted and other efficiencies are achieved with the reduced production," the Treasury Department said in a statement, per the outlet.
"Given the cost savings to the taxpayer, this is just another example of our administration cutting waste for the American taxpayer and making the government more efficient for the American people," the organization said.
How much does it cost to make a penny?
The cost of producing a penny has doubled in the past 10 years, from 1.3 cents in 2014 to 3.69 cents in 2024, the Treasury said, according to ABC News. In comparison, the cost of printing a $1 bill is cheaper than the production of a penny.
Additionally, per the Federal Reserve, the Treasury's Bureau of Engraving and Printing shared that it is currently 3.2 cents to print a $1 bill, less than the price of minting a penny. In the fiscal year ending in 2024, the U.S. Mint reported $85.3 million in losses for the production of pennies, according to the Mint's annual report to Congress, ABC News said.