U.S. Penny production ends: Treasury suspends minting as a cost-saving measure

PHILADELPHIA — The U.S. Mint has suspended production of the one-cent coin, known as the penny, as economic factors and production costs rise.

On Nov. 12, the United States Mint held a ceremony where United States Treasurer Brandon Beach struck the final penny marking the end of its 232-year production run.

“Today the Mint celebrates 232 years of penny manufacturing,” said Kristie McNally, Acting Mint Director. “While general production concludes today, the penny’s legacy lives on. As its usage in commerce continues to evolve, its significance in America’s story will endure.”  

According to the U.S. Mint, the decision stems from the escalating cost of making each penny, which is 3.69 cents. The cost of producing the penny has more than doubled its face value, up from 1.42 cents a decade ago.

This decision is projected to save Americans roughly $56 million every year.

How the halt in penny production will affect families

In the near term, families are not expected to see drastic changes because the penny will continue to be legal tender and will continue to be used for payment. As time passes, pennies may be harder to come by, forcing businesses to round cash transactions to the nearest nickel.  This could affect some families. Families using electronic payment methods are not expected to see this cent rounding.

The U.S. Mint says, "While circulating production has ceased, the penny remains legal tender. There are an estimated 300 billion pennies in circulation—far exceeding the amount needed for commerce. Retailers and other businesses can continue to price goods and services in one-cent increments."

The stop in production also gives families new hope of getting rid of their ever-growing stash of pennies through cash or gift card exchanges with retailers who will be unable to maintain a sufficient supply and aren't getting enough from banks. 

Grocery stores like Giant Eagle in Ohio and Price Chopper in New York are a few grocers nationwide that are exchanging pennies for a store gift card worth double. Other grocery chains like Kroger told The Columbus Dispatch that it has begun asking their customers to provide exact change.

While the penny will no longer be produced, your pocket change will continue to be spendable and always accepted at your nearest wish fountain. 

More information about the penny and its history can be found on the U.S. Mint website or you can read the FAQ.