Why Did the U.S. Stop Making Pennies? Here’s What You Need to Know About the End of the 1-Cent Coin

It’s the end of an era for the United States penny.

On Nov. 12, the U.S. Mint in Philadelphia concluded production of the 1-cent coin, which is more than 200 years old, per the Associated Press. The discontinuation of the penny comes nearly nine months after President Donald Trump ordered the Treasury Department to halt production of the coin in February 2025, per USA Today.

“For far too long the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote on social media in February 2025, per NBC News. “This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies.”

Now, U.S. Treasurer Brandon Beach has officially stamped the last penny during an event marking the end of the coin’s production, per USA Today.

So, why did the U.S. stop making pennies? Here’s everything to know about the discontinuation of the coin.

Why did the U.S. stop making pennies?

The U.S. has ended production of the penny as it has become more costly to produce than what the 1-cent coin is worth.

The U.S. Mint’s 2024 report revealed that it was the 19th consecutive fiscal year that the unit cost for the pennies (and nickels!) remained above face value.

Per The New York Times, a conservative estimate says that there are nearly 240 billion pennies lying around the United States — many of which do not get spent at the rate they are demanded. While pennies are often given out as change, they are rarely spent, which creates a continuous demand for replacements, per the outlet.

How much does it cost to make a U.S. penny?

The U.S. Mint reported in 2024 that it cost them approximately 3.69 cents to produce each penny, which amassed a total gross cost of approximately $117 million.

It costs approximately 13.78 cents to make a nickel, 5.80 cents to make a dime and 14.70 cents to make a quarter, per the U.S. Mint.

What will happen to existing pennies?

Although the 1-cent coin will no longer be minted, the penny will “retain its value indefinitely,” per USA Today.

“Although today we say goodbye to the copper 1-cent coin, the penny remains legal tender,” Beach said during the Nov. 12 event. “And we encourage you to use it.”

Was Donald Trump the first person to pitch discontinuing the penny?

Discontinuing the penny has been in discussion for years, long before Trump took office. According to The New York Times, former Treasury secretary William E. Simon begged lawmakers to “give serious consideration” to discontinuing 1-cent coins as soon as possible — nearly half a century ago.

A Treasury report at the time suggested that the coin should be eradicated “no later than 1980,” per the outlet.

According to USA Today, U.S. Rep. for Arizona Jim Kolbe teamed up with Jim Hayes of Louisiana in 1989 to sponsor the Price Rounding Act, which would have required prices to be rounded to the nearest nickel, though the bill didn’t pass.

Former President Barack Obama also acknowledged the waste of the penny during his time in office, calling the coin “a good metaphor for some of the larger problems of the U.S. government,” per the outlet.

“It’s very hard to get rid of things that don’t work,” Obama said, explaining that eliminating the penny is something that a president would “need legislation” for.

Has the U.S. discontinued other coins?

The penny isn’t the first U.S. coin to be discontinued. Per the Library of Congress, historic practices suggest that the U.S. has previously eliminated circulating coins — whether by statutorily removing it from the list of authorized coins or by discontinuing production as a circulating coin.

As for those that were eliminated through statutory changes, Congress ended the production of half cent coins in 1857. In 1930, Congress discontinued the U.S. Mint’s ability to make $2.50 gold coins.

Meanwhile, the Secretary of the Treasury ordered the U.S. Mint to suspend production of circulating $1 coins, though it remains an authorized coin and continues to be produced as numismatic products, per the Library of Congress.

What will change without the penny?

As penny production has decreased over the last few months, several businesses and retailers have found themselves in a bind when customers don’t have exact change for transactions that are not rounded to the nearest nickel, per The New York Times.

Some businesses took it upon themselves to round transactions to the nearest nickel, per the outlet, which will become standard practice if new legislation, including the “Common Cents Act,” is passed.

According to USA Today, the bill would round cash transactions to the nearest five cents if passed.