Pennies are being gradually phased out in the United States due to rising production costs and shifting cash-use patterns, with the Treasury stopping new penny production and inventories being exhausted. Pricing and checkout practices will adjust as pennies disappear from circulation. What’s happening
- Production halt: The U.S. Mint has stopped producing new pennies, placing its final orders for penny blanks and planning to run until those blanks are exhausted. This means no new pennies will enter circulation once existing stock is depleted.
- Cost concerns: It costs more to mint a penny (roughly 3–4 cents per coin) than its face value. Critics argue this is wasteful, while supporters note potential downstream savings. The high cost is a central driver behind the discontinuation.
- Cash-use trends: Many Americans have moved toward cashless transactions, reducing demand for coins and cash handling in general. This trend supports the move away from producing pennies.
What this means for everyday life
- Rounding: As pennies vanish, prices paid in cash will likely be rounded to the nearest nickel (5 cents). Businesses will adapt pricing and change-giving practices accordingly.
- Legal status: Pennies remain legal tender for now, but new pennies won’t be minted until existing supplies are depleted. Over time, pennies will disappear from everyday transactions as they are withdrawn from circulation.
- Economic context: Other countries have already phased out the smallest denominations, and the U.S. is following a similar trajectory in response to costs and changing consumer payment habits.
Common questions
- When will pennies be completely gone? There isn’t a fixed, nationwide end date; production has ceased, and pennies will remain in use until inventories run out. Some forecasts suggest a gradual disappearance through 2026 as blanks are exhausted.
- Will penny value rise after discontinuation? Most experts say pennies will retain little to no collectible value in the near term, with any potential premium tied to very limited mintages; the broader effect is more about ongoing circulation and rounding practices than immediate price spikes.
If you’d like, I can pull the latest official statements or summarize specific sources to give you the most current details and any regional nuances.
