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The Hindu
23-05-2025
- Business
- The Hindu
Stop making cents: U.S. Mint moves forward with plans to kill penny
The Trump administration says making cents doesn't make sense anymore. The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed on Thursday (May 22, 2025). This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorised to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilised, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States'. Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Mr. Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Mr. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise, simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says, 'There has been an evolution over the past six months that inevitably the production of the penny will be halted'. His group advocates for the U.S. to find ways to reduce the cost of producing nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
Express Tribune
23-05-2025
- Business
- Express Tribune
US Treasury to end penny production by early 2026
Listen to article The US Treasury Department has officially confirmed it will end production of the penny coin by early 2026, marking a significant shift in American currency policy after years of debate over the coin's utility and rising production costs. The move follows a directive from President Donald Trump issued in February 2025, and comes amid growing bipartisan support in Congress to phase out the lowest denomination of US currency. The Treasury has reportedly placed its final order for penny blanks, with officials stating that the US Mint will continue to manufacture the coin only while existing materials last. The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 Once the current inventory is exhausted, no new pennies will enter circulation, although existing coins will remain legal tender and can still be used for purchases. The department estimates that halting production will save American taxpayers $56 million annually. President Trump described the penny as "wasteful," noting that each coin now costs over 3.6 cents to produce—more than three times its face value. In a post on social media, he said, 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Let's rip the waste out of our great nation's budget, even if it's a penny at a time.' The Department of the Treasury this month ordered its final shipment of blanks used to make pennies, a spokesperson told The National News Desk on — 7News DC (@7NewsDC) May 23, 2025 In Congress, lawmakers introduced two bipartisan bills this year aimed at permanently ending penny production: the Make Sense Not Cents Act and the Common Cents Act. These measures reflect a broader consensus that the coin's continued production no longer makes economic sense. As a result of the change, retailers and other businesses will begin rounding cash transaction totals to the nearest five cents. Electronic payments, however, will remain unchanged and can still reflect exact amounts. The penny, first introduced in 1793 and bearing President Abraham Lincoln's likeness since 1909, has long been a fixture of American life. But critics argue it is increasingly obsolete in a digital economy and often ends up forgotten in jars and drawers. Supporters, including charitable groups and some economists, argue that the coin is still useful for maintaining price accuracy and supporting donation drives. There are currently around 114 billion pennies in circulation. While the US Mint will continue producing nickels, experts warn this could become more costly. Nickels cost nearly 14 cents each to mint, raising concerns that ending penny production might simply shift financial pressure elsewhere in the coinage system. The United States now joins other nations such as Canada, Australia, and New Zealand, which have already phased out their lowest-denomination coins. Analysts say the success of the policy will depend on how the transition is managed and whether the government can also reduce production costs for more expensive coins like the nickel.
New Indian Express
23-05-2025
- Business
- New Indian Express
Stop making cents: US Mint moves forward with plans to kill the penny
WASHINGTON: The Trump administration says making cents doesn't make sense anymore. The US Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury. By stopping the penny's production, the Treasury expects an immediate annual savings of $56 million in reduced material costs, according to the official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' Trump wrote at that time in a post on his Truth Social site. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' There are about 114 billion pennies currently in circulation in the United States — that's $1.14 billion — but they are greatly underutilized, the Treasury says. The penny was one of the first coins made by the US Mint after its establishment in 1792. The nation's treasury secretary has the authority to mint and issue coins 'in amounts the secretary decides are necessary to meet the needs of the United States.' Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the US Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. The Wall Street Journal first reported the news. Pennies are the most popular coin made by the US Mint, which reported making 3.2 billion of them last year. That's more than half of all the new coins it made last year. Congress, which dictates currency specifications such as the size and metal content of coins, could make Trump's order permanent through law. But past congressional efforts to ditch the penny have failed. Two bipartisan bills to kill the penny permanently were introduced this year. Sens. Mike Lee, R-Utah, and Jeff Merkley, D-Ore., introduced the Make Sense Not Cents Act this month. In April, Reps. Lisa McClain, R-Mich., and Robert Garcia, D-Calif., along with Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., introduced the Common Cents Act. Jay Zagorsky, professor of markets, public policy, and law at Boston University, said that while he supports the move to end penny production, Congress must include language in any proposed legislation to require rounding up in pricing, which will eliminate the demand for pennies. Zagorsky, who recently published a book called 'The Power of Cash: Why Using Paper Money is Good for You and Society,' said otherwise simply ditching the penny will only increase demand for nickels, which are even more expensive, at 14 cents to produce. 'If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn't make any sense.' Mark Weller, executive director of the Americans for Common Cents group — which conducts research and provides information to Congress and the Executive Branch on the value and benefits of the penny — says 'there has been an evolution over the past six months that inevitably the production of the penny will be halted.' His group advocates for the U.S. to find ways to reduce the cost of producing the nickel, especially since it will be more in demand once the penny is totally eliminated from circulation. 'It's incumbent on Treasury to come up with a cheaper way to make the nickel,' Weller said. 'Let's make sure we're making our coins as least expensively as possible and maintaining the option to use cash in transactions.'
Time of India
22-05-2025
- Business
- Time of India
Donald Trump pushes US penny out: Production to end after 230 years
The days of the US penny appear to be numbered. The US Mint has made its final order of penny blanks and will stop producing the coin once supplies run out, a Treasury Department official confirmed on Thursday. The move is part of a cost-cutting plan, as the price of making pennies has risen sharply, by over 20% in 2024 alone. Producing a single penny now costs nearly 4 cents. According to the Treasury, ending penny production will save around $56 million a year in material costs. The decision follows President Donald Trump 's public call in February to stop minting the 1-cent coin. 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' he wrote on his Truth Social platform. 'I have instructed my Secretary of the US Treasury to stop producing new pennies.' Despite 114 billion pennies still in circulation, worth about $1.14 billion, officials say they are rarely used in everyday transactions. Last year alone, 3.2 billion pennies were made, making it the most produced coin in the US. Still, many argue the coin has outlived its usefulness. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo The penny has been part of US currency since 1792, one of the first coins struck by the US Mint. But over 230 years later, it's become a financial burden. While penny production is costly, the nickel is even more expensive, costing nearly 14 cents per coin to produce. Under US law, the Treasury Secretary has the authority to decide how many coins should be minted to meet national needs. However, to eliminate the penny permanently, Congress would need to pass a law, something it has tried and failed to do in the past. This year, two bipartisan efforts have emerged to change that. Senators Mike Lee and Jeff Merkley introduced the Make Sense Not Cents Act, while the Common Cents Act was put forward by Representatives Lisa McClain and Robert Garcia, along with Senators Cynthia Lummis and Kirsten Gillibrand. Critics of the penny point to its high cost and limited function in today's economy. But supporters say it still has value, particularly in charity drives, and argue that eliminating it could lead to increased reliance on the nickel, which is even more costly to produce. Jay Zagorsky, a professor at Boston University specialising in markets, public policy, and law, supports ending the penny but warns of potential side effects. 'If we suddenly have to produce a lot of nickels and we lose more money on producing every nickel, eliminating the penny doesn't make any sense,' he said.
New York Post
22-05-2025
- Business
- New York Post
Non-cents: US Mint moves to kill penny with production ending after final order
Everything is making less cents. The US Mint has placed its final order of penny blanks and will stop producing the coin when those run out by early next year — marking the beginning of the end for one of the oldest continually printed money pieces in America, a Treasury Department spokesperson confirmed Thursday. The decision follows President Trump's announcement in February that he had ordered the department to stop producing metal Lincolns due to their high production cost. 'Let's rip the waste out of our great nation's budget, even if it's a penny at a time,' Trump said at the time. Over the past 10 years, penny production costs have skyrocketed from 1.3 cents per coin to 3.69 cents — jumping 20% in fiscal year 2024 alone, the Mint said. Ending penny production is projected to lead to immediate annual savings of $56 million, with more expected from reduced facility usage and other changes as the coin is phased out. Once there are no longer enough pennies in circulation, businesses will have to start rounding consumer prices up or down to the nearest 5 cents — similar to what Canada did when it stopped producing its one-cent coin, according to the Wall Street Journal, which first reported the Treasury's move. 3 A press operator at the US Mint in Denver pours a load of freshly minted pennies into a container. Bloomberg via Getty Images 3 Pennies will no longer be produced once the Treasury's final order of blanks runs out. AFP via Getty Images 3 The Mint said that there will be $56 million saved immediately once penny production ends. Getty Images Despite the penny's loss in practical value, it remains the most widely printed coin in the US. The Mint reported making 3.2 billion of them just last year — more than half of all new coins produced. There are currently a whopping 114 billion pennies in circulation in the US, according to the agency. Two bipartisan bills to end penny production have been introduced in Congress so far this session. Sens. Mike Lee (R-Utah) and Jeff Merkley (D-Ore.) introduced the 'Make Sense Not Cents Act' on May 1. A day earlier, Reps. Lisa McClain (R-Mich.) and Robert Garcia (D-Calif.), along with Sens. Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-NY), filed the 'Common Cents Act.' The penny was among the first coins produced once the US Mint was established in 1792. Since then, it has undergone several changes in design, sign and metallic composition — going from pure copper to a blend of zinc and copper. Abraham Lincoln's face was first molded onto the coin in 1909 to commemorate the 16th president's 100th birthday. With Post Wires
