The Penny's Last Mint: A Farewell to the Iconic Coin

The U.S. Treasury is ceasing production of the penny due to high costs, saving $56 million annually. While pennies remain legal tender, they join other countries phasing out low-value coins. The decision awaits congressional approval, reflecting changing economic needs and consumer habits. Bipartisan legislation is in development.

In a move to curb financial waste, U.S. Treasury Secretary Scott Bessent and Treasurer Brandon Beach will oversee the production of the last one-cent coin during a visit to the Philadelphia Mint this Wednesday. The minting of each penny has been deemed uneconomical, costing nearly four cents to produce.

President Donald Trump ordered the halt in February, citing unnecessary expenditure, prompting businesses to adjust their pricing strategies. Currently, the production cost of a penny stands at 3.69 cents, a significant increase from 1.42 cents a decade ago, thereby rendering them financially unsustainable according to the Treasury.

The decision to discontinue pennies will save the U.S. Mint about $56 million yearly as consumers adapt to cash transaction rounding and more reliance on electronic payments. This transition mirrors steps taken by countries like Canada and Australia. Meanwhile, a bipartisan bill aims to address the broader issue of coin production costs.

(With inputs from agencies.)