Washington, D.C., Could 22, 2025: The U.S. Treasury Division has formally confirmed plans to part out manufacturing of the penny, with its remaining order for penny blanks positioned this month, in response to a press release reported by the Wall Avenue Journal. The USA Mint will stop manufacturing new pennies as soon as the prevailing stock of blanks is depleted, seemingly by early 2026. This resolution, pushed by the excessive value of manufacturing—3.7 cents per penny in 2024, per the U.S. Mint’s annual report—marks a big step in President Donald Trump’s cost-cutting agenda, first introduced in February 2025. The transfer, which may save taxpayers an estimated $56 million yearly, has sparked debate over its financial impression, authorized authority, and implications for money transactions, with reactions flooding platforms like X.
Background of the Resolution
The choice to halt penny manufacturing follows years of debate over the one-cent coin’s relevance. In fiscal yr 2024, the U.S. Mint produced 3.2 billion pennies, incurring a lack of $85.3 million attributable to detrimental seigniorage, the place manufacturing prices (3 cents for manufacturing and 0.7 cents for distribution) exceed the coin’s face worth. This marked the nineteenth consecutive yr that pennies value extra to supply than their value, a development exacerbated by inflation and rising zinc costs (pennies are 97.5% zinc with a copper coating). The difficulty gained traction in January 2025 when Elon Musk’s Division of Authorities Effectivity (DOGE) highlighted the penny’s value, stating on X, “The penny prices over 3 cents to make and value US taxpayers over $179 million in FY2023.”
On February 9, 2025, President Trump introduced by way of Fact Social, “For a lot too lengthy the USA has minted pennies which accurately value us greater than 2 cents. That is so wasteful! I’ve instructed my Secretary of the US Treasury to cease producing new pennies.” Treasury Secretary Scott Bessent confirmed the directive, noting, “It prices about three cents to make one cent—even in Washington, that math doesn’t work.” The Treasury’s remaining order for penny blanks this month solidifies the plan, with manufacturing anticipated to wind down as provides run out.
Authorized and Sensible Issues
The transfer has raised questions on its legality, because the U.S. Structure (Article I, Part 8) grants Congress the authority to coin cash, and the Coinage Act of 1792 mandates penny manufacturing. Nevertheless, authorized scholar Laurence H. Tribe argues that the Treasury Secretary can halt minting with out new cash if demand is deemed zero, stating, “This motion appears fully lawful and absolutely constitutional.” Economist Robert Triest of Northeastern College famous, “The method of discontinuing the penny is a bit of unclear. It will seemingly require an act of Congress, however the Secretary of the Treasury would possibly have the ability to merely cease the minting of latest pennies.”
Whereas present pennies stay authorized tender, companies will seemingly spherical money transactions to the closest nickel, following Canada’s mannequin after it phased out its penny in 2012. Canada’s transition, which concerned recycling pennies for copper and zinc, resulted in minimal financial disruption, with digital transactions nonetheless calculated to the cent. Different nations, together with Australia, New Zealand, and Eire, have equally eradicated low-value cash with out vital points.
Financial Implications
The Treasury estimates instant financial savings of $56 million in materials prices, with extra financial savings from diminished facility utilization. Nevertheless, critics, together with Individuals for Widespread Cents, a gaggle backed by zinc provider Jarden Zinc Merchandise, argue that eliminating the penny may enhance prices if nickel manufacturing rises to fill the hole. Nickels value 13.8 cents to supply (11 cents for manufacturing, 2.8 cents for distribution), and the Mint produced solely 202 million nickels in 2024, down 86% from prior years. The group claims that producing simply 850,000 extra nickels in 2025 may offset penny-related financial savings.
Economists like Robert Whaples of Wake Forest College argue that pennies waste time in transactions, noting, “When you earn greater than the minimal wage, you’re shedding cash stopping to select up a penny.” Conversely, pro-penny advocates spotlight their position in charity drives and pricing traditions, although many pennies find yourself in jars or discarded, with the Mint estimating that many of the 250 billion pennies produced over three many years are out of circulation.
Social Media and Public Sentiment
The announcement has generated vital buzz on X. @MAGAresponse posted, “The U.S. Mint has confirmed they’ve made their remaining order of penny blanks! They plan to cease producing the coin when these run out,” reflecting enthusiasm for the cost-saving measure. @PeterSchiff questioned why nickels weren’t included, noting, “The copper and nickel in these cash are already value greater than a nickel.” In the meantime, @GoldTelegraph_ framed the choice as a symptom of fiat forex points, stating, “That is what occurs in a fiat forex world.” Coin collectors, nonetheless, see alternative, with @CBSNews reporting that the worth of 2025 pennies and uncommon cash may rise, as seen in Canada post-2012.
Broader Context and Future Outlook
The penny’s phase-out aligns with Trump’s broader fiscal agenda, together with his current tax and spending invoice handed by a single vote within the Home. The choice additionally displays a world development towards eliminating low-value cash, pushed by declining money utilization and inflation. Nevertheless, with out congressional motion to withdraw pennies from circulation, they are going to stay in use till naturally phased out, probably over many years. The Treasury has not addressed nickel manufacturing plans, elevating considerations about long-term prices.
Because the U.S. strikes towards a penny-less future, companies and customers might want to adapt to rounding practices, whereas collectors anticipate a surge in penny worth. The Treasury’s resolution, whereas modest within the context of the $6.8 trillion 2024 federal price range, underscores a symbolic push for effectivity, with implications for the way Individuals deal with small change in an more and more digital financial system.
Sources: CNN, The Wall Avenue Journal, AP Information, CBS Information, The New York Occasions, The Washington Put up, and posts on X.
