The penny, America’s oldest coin, is on its way out. According to the Washington Examiner, the Treasury Department will halt production of new pennies in early 2026, following a directive from President Donald Trump. This move sparks debate over fiscal responsibility and nostalgia for a coin that’s been around since 1793.
Trump’s February Truth Social post instructed Treasury Secretary Scott Bessent to stop minting pennies, citing their high production cost. Each penny costs 3.69 cents to make but is worth just 1 cent, according to the U.S. Mint’s fiscal 2024 report. That’s a losing deal any businessman would scoff at.
The U.S. Mint lost $85 million last year on penny production alone. Meanwhile, nickels cost 13.78 cents to make despite their 5-cent value, and half-dollars cost 34 cents. Quarters, at 14.68 cents to produce, are the only coin under their 25-cent value, showing not all coins are budget-busters.
The penny’s story began with the Coinage Act of 1792, which established the first national mint in Philadelphia. Copper pennies rolled out in 1793, a symbol of a young nation’s ambition. Fast-forward to today, and modern pennies are mostly zinc, 97.5%, with just 2.5% copper.
In 1857, the Coinage Act reduced the penny’s size and copper content while banning foreign currency as legal tender. The Lincoln Wheat penny, launched in 1909, honored Abraham Lincoln’s centennial. Rare 1943 Bronze Wheat Pennies, accidentally struck during World War II, remind us of the coin’s quirky history.
Efforts to ditch the penny aren’t new. The Price Rounding Act of 1989, proposed by Rep. James Hayes, aimed to round cash purchases to the nearest nickel but fizzled out. Sen. John McCain’s COINS Act of 2017, which sought to pause penny production and swap $1 bills for coins, also failed to gain traction.
“For far too long, the United States has minted pennies which cost us more than 2 cents,” Trump declared. He’s not wrong—$85 million in losses isn’t pocket change. But his call to “rip the waste out” ignores the penny’s cultural weight, which some argue is worth more than its metal.
“This is so wasteful!” Trump added, pushing for penny-pinching at the federal level. His logic aligns with a growing cashless trend: Pew Research Center data shows 41% of Americans didn’t use cash weekly in 2022, up from 24% in 2015. If we’re ditching cash, why keep a coin that costs more than it’s worth?
A March YouGov poll found 42% of Americans want the penny gone, up from 34% a decade ago, though 30% still cling to it. Nostalgia runs deep, especially for collectors. But sentimentality doesn’t balance budgets, and the penny’s days seem numbered.
Other nations have already kissed low-value coins goodbye. New Zealand axed its one-cent coin in 1990, Australia followed in 1992, and Canada ditched its penny in 2012. These countries didn’t collapse, proving the U.S. can likely survive a penny-free future.
In the U.S., businesses will round cash transactions to the nearest 5 cents once pennies are phased out. Canada’s experience shows some businesses round down, while others round up for sales above 5 cents—a mixed bag for consumers. Non-cash prices, however, will stay exact, so your card won’t feel the pinch.
Pennies still in circulation will remain legal tender, so you can keep spending those jarfuls. But with production stopping, they’ll slowly vanish from pockets and registers. It’s a gradual farewell, not a sudden purge.
“I think the penny should be discontinued myself, but only from a professional standpoint,” said coin expert Julian Leidman. He’s got a point: pennies lose money, but their history captivates collectors. Leidman’s collector side mourns the loss, noting, “The penny has been going on since 1793, and a lot of people collect them.”
Leidman’s split perspective captures the tension: fiscal sense versus tradition. The 1944 steel wheat pennies, accidentally struck in tiny numbers, are collectors’ gold. Ending production could make existing pennies more valuable, turning your couch change into a small fortune.
The penny’s exit raises questions about other coins, like the nickel, which also costs more to produce than its value. Trump’s move might be the first step in a broader coinage overhaul. For now, it’s a wake-up call: sometimes, even small change comes with big consequences.
