The End of an Era: U.S. to Halt Penny Production

The U.S. Mint will cease penny production due to rising costs, saving USD 56 million annually. President Trump supports the halt, citing wastefulness. Two bipartisan bills aim to make this move permanent. The decision raises concerns over increased demand and higher costs for nickels.

The U.S. government is set to stop producing pennies as the financial burden of minting the 1-cent coin becomes too high. A Treasury Department official confirmed that the U.S. Mint has placed its final order of penny blanks, effectively ending production once this supply is depleted.

This decision, instigated by President Donald Trump, follows an announcement earlier this year where he emphasized the wastefulness of manufacturing pennies that cost more than their face value. The Treasury anticipates saving USD 56 million annually from this move, driven by skyrocketing production costs.

Despite the popularity of pennies, with the U.S. Mint producing 3.2 billion last year alone, Congress has repeatedly failed to pass legislation to permanently end penny production. New bipartisan bills seek to address this, but challenges remain, particularly concerning the potential rise in nickel demand, which are also costly to produce.

(With inputs from agencies.)