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The Trump administration is moving forward with plans to phase out the penny, a decision that could save the U.S. government tens of millions of dollars each year. The Treasury Department has confirmed it has placed its final order for blank pennies, with minting expected to end once that supply is depleted.
The cost of producing a single penny currently hovers around four cents—far exceeding its face value. By eliminating the one-cent coin, officials estimate the government will save approximately $56 million annually. A Treasury spokeswoman acknowledged the cost-saving measure, which was first reported by The Wall Street Journal.
President Trump had signaled support for phasing out the penny as early as February, citing wasteful spending. The U.S. now joins countries like Canada, New Zealand, and Australia, all of which have successfully eliminated their lowest-denomination coins in recent years.
Though the penny will no longer be produced, it will remain legal tender. With over a billion dollars’ worth of pennies still in circulation, many Americans will likely continue to encounter them—in coffee cans, desk drawers, and the forgotten corners of pants pockets.
The phase-out is likely to affect cash transactions more than digital ones. Retailers may begin rounding totals to the nearest nickel, a minor inconvenience in a world where fewer than 20% of payments are made in cash, according to data from the Federal Reserve Bank of Boston.
The penny has a long and storied history. First minted in 1793, it has featured the profile of President Abraham Lincoln since 1909, commemorating the centennial of his birth. At the time, poet Carl Sandburg praised the choice: “The common, homely face of ‘Honest Abe’ will look good on the penny, the coin of the common folk from whom he came and to whom he belongs.”
Notably, Lincoln’s image also appears on the $5 bill—leaving his legacy well-represented in U.S. currency.
Some lawmakers are raising questions about the broader implications of ending the penny. During a recent hearing, Rep. John Rose (R-Tenn.) noted that the phase-out could increase demand for nickels. However, the nickel is also produced at a loss—costing around 14 cents each to mint.
Treasury Secretary Scott Bessent told Congress the administration is exploring cost-cutting solutions for the nickel as well. “We believe we can break even on nickel production by adjusting the metal composition,” Bessent said. He also pointed out a silver lining: “I will point out that the dime is very profitable.”
As the administration presses forward, the end of the penny marks a symbolic yet practical shift—reflecting both evolving consumer behavior and fiscal priorities in a digital-first economy.
