US retires penny after 230 years, citing high costs and low value
3 Min Read
The US Mint halts penny production after decades of debate, marking the end of a coin once central to American commerce and culture.
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A sign in a Kwik Trip store shows the store will no longer be using pennies to give change, Oct. 23, 2025, in Yorkville, Wisconsin. (AP)
After 230 years in circulation, the United States has officially ended the production of the penny. The decision comes as the 1-cent coin, once a staple of American transactions, has become financially unsustainable, as each penny now costs nearly four cents to produce.
Introduced in 1793, the penny once held meaningful purchasing power, enough to buy a candle, a biscuit, or a piece of candy. Today, most pennies end up forgotten in drawers and jars, rarely used in daily commerce.
The final penny was struck at the US Mint in Philadelphia, where Treasurer Brandon Beach marked the occasion with a ceremonial sendoff. “God bless America, and we’re going to save the taxpayers $56 million,” he declared before pressing the button to mint the final coins, which will be auctioned.
Although production has ended, billions of pennies already in circulation will remain legal tender. The most recent coin to be withdrawn due to low value was the half-cent in 1857.
Most penny production had already tapered off earlier in the year. The final striking was marked quietly by mint workers, followed by a round of applause. “It’s an emotional day,” said Clayton Crotty, a 15-year mint employee. “But it’s not unexpected.”
Presidential order and public reaction
The decision was made under an executive order by President Donald Trump, who cited rising production costs and fading utility. “For far too long the United States has minted pennies which literally cost us more than 2 cents,” he wrote in February. “This is so wasteful!”
While many Americans view the penny with nostalgia, some retailers expressed frustration over the abrupt nature of the phaseout.
Without clear transition guidelines, many businesses began rounding prices down, requesting exact change, or even offering incentives for penny donations.
“We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go,” said Jeff Lenard of the National Association of Convenience Stores.
Economic and historical perspectives
Supporters of the move have pointed to cost savings, greater efficiency at checkouts, and international precedent; Canada ended penny production in 2012. Banks have already begun rationing coin distribution as a result of reduced mint output.
Ironically, while the penny is costly to produce, it’s still cheaper than the nickel, which now costs nearly 14 cents per coin. Dimes and quarters remain more cost-effective, at under 6 and nearly 15 cents, respectively.
Beyond economics, historians and collectors argue that the penny’s retirement marks a cultural loss. Frank Holt, emeritus professor at the University of Houston, underscored the symbolic role of coins in national identity. “We put mottoes on them and self-identifiers… They reflect our politics, our religion, our art, our sense of ourselves, our ideals, our aspirations,” he said.
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