U.S. TO PHASE OUT PENNIES IN 2026, ENDING OVER TWO CENTURIES OF CIRCULATION
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By Aishat Momoh. O.
The U.S. Treasury Department has announced that production of the one-cent coin, commonly known as the penny, will cease in 2026, bringing an end to more than 200 years of its circulation.
The decision follows a directive from former President Donald Trump, who in February instructed Treasury Secretary Scott Bessent to discontinue minting the coin, citing its rising production costs and diminishing usefulness, according to a report by the BBC.
First introduced in 1793, the penny has long been a staple of American currency. However, its future has been the subject of debate for years, with critics arguing that the coin is both economically inefficient and environmentally wasteful.
According to the Treasury, the cost of minting a single penny has increased from 1.3 cents to 3.69 cents over the past decade. Ending production is projected to save the federal government an estimated $56 million annually in material costs alone.
“Confirming the WSJ story, the Treasury has made its final order of penny blanks this month, and the United States Mint will continue to manufacture pennies while an inventory of penny blanks exists,” a Treasury spokesperson told the BBC.
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Supporters of the penny argue that its elimination could contribute to higher prices for consumers and negatively impact charitable fundraising campaigns that rely on small-denomination donations. However, others say the move is long overdue, given the growing use of digital payments and the coin’s declining purchasing power.
In January, Elon Musk’s unofficial Department of Government Efficiency (DOGE) drew attention to the issue in a viral X post, reigniting public interest in the coin’s future.
The United States now joins a growing list of countries eliminating low-denomination coins. Canada scrapped its one-cent coin in 2012, citing similar concerns. In the United Kingdom, the Royal Mint did not produce any new coins in 2024, due to a decline in cash use and an adequate existing supply in circulation.
As the U.S. transitions away from the penny, businesses are expected to adopt rounding practices for cash transactions, as has been done in other nations. The Treasury has assured that the remaining inventory of penny blanks will be used before production officially ends in 2026.
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