U.S. Treasury To Stop Minting Pennies
on May 22, 2025
One Cent Coin To Be Discontinued
Penny for your thoughts?
Well, it may need to be rounded up to a nickel.
On Thursday, May 22, in a statement given to the Wall Street Journal, the United States Department of the Treasury revealed its plan for doing away with the penny.
Back in February, the Department of the Treasury was instructed by President Donald Trump to discontinue production of new pennies.
Taking to Truth Social, Trump wrote:
According to the Associated Press, “The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. This move comes as the cost of making pennies has increased markedly, by upward of 20% in 2024, according to the Treasury.”
This coin is expected to fall out of circulation early next year, but will still be accepted as U.S. currency.
History Of The Penny’s Design
The penny’s origins go back to 1793, as it was among the first coins minted by the newly established United States government.
Today, the face of the 16th president, Abraham Lincoln, is emblazoned upon the coin, but that has only been the case since 1909.
Prior to Lincoln’s profile, the penny has featured Lady Liberty, in various styles, from 1792 to 1857. In 1856 to 1858, the coin featured the national bird, the bald eagle.
Notably, from 1859 to 1909, the likeness of a Native American adorned the coin, known as the “Indian Head cent.”
What Is A Penny Made Out Of?
Since 1982, the penny has been made from copper-plated zinc, with the copper amounting to only 2.5% of the penny.
Compared to the early penny, which went through two distinct compositions from 1792 to 1857, while being composed of 100% copper, the contemporary penny costs more than double its value to produce.
The Department of Government Efficiency, more commonly known as DOGE, made a post on X on January 21, saying, “The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023. The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced.”
Current Treasury estimates for annual savings for the American taxpayer are closer to $56 million, according to the Associated Press.
However, there are concerns that the need for stores and consumers to round up or down to make change will necessitate an increased need for nickels, which cost $0.14 to produce.
