In brief
As the U.S. Mint prepares to strike its final penny, nostalgia meets practicality. Rising costs have made pennies more expensive to produce than their worth, prompting President Trump's decision to abolish the coin that has been minted since 1793.
PHILADELPHIA (AP) — What once could buy a biscuit or a piece of candy, today many tangled in drawer clutter or collected as good luck charms. But the penny's days are numbered.
The U.S. Mint in Philadelphia is set to strike its last circulating penny this Wednesday, as President Trump has determined that the cost of making them has surpassed their value. Costing nearly 4 cents to produce, the 1-cent coin has become increasingly obsolete in today's economy.
The U.S. Mint has been producing pennies since 1793, shortly after Congress enacted the Coinage Act. While billions of pennies flood circulation, they seldom play a critical role in modern transactions.
“For too long the United States has minted pennies that literally cost us more than 2 cents,” Trump remarked in a February social media post. “This is so wasteful!”
Despite the decision, many retain a sentimental attachment to the penny, viewing them as lucky or collectible. Retailers have expressed concerns over the abrupt phase-out, struggling to adapt to the end of penny production without government guidance on handling transactions.
Some adjusted prices to prevent shortchanging customers, others urged exact change, while some creatively incentivized customers by offering free drinks in exchange for a handful of pennies.
Organizations like the National Association of Convenience Stores have long advocated for ending penny production, though they didn’t anticipate an abrupt conclusion. Banks have also begun limiting penny supplies in a bid to manage the coin surplus.
On Wednesday afternoon, U.S. Treasury Secretary Scott Bessent and Treasurer Brandon Beach are expected to join for the final production run in Philadelphia, aiming to save $56 million annually by halting penny minting.
Interestingly, while the penny has become costlier to produce, the nickel still presents a larger conundrum, costing nearly 14 cents to produce. In contrast, the dime costs less than 6 cents, while the quarter sits at nearly 15 cents.
