The United States Mint has officially ceased production of the penny after more than 230 years, with the final coin struck on Wednesday in Philadelphia due to production costs that far exceed its face value. This historic move ends the era of the one-cent piece, a staple of American currency since 1787, and signals a shift in how cash transactions will be handled nationwide.
The last penny was minted on Wednesday afternoon at the U.S. Mint in Philadelphia, an event overseen by U.S. Treasurer Brandon Beach. President Donald Trump announced the discontinuation via social media in February, citing the penny’s unsustainable production cost of nearly four cents for a one-cent coin. The final coins pressed will be auctioned off, while the last pennies intended for circulation were actually struck back in June, highlighting the phased approach to ending production.
The penny’s history dates to 1787, with Benjamin Franklin credited for the initial design, and it became the first U.S. coin to feature a president when Abraham Lincoln’s likeness was added in 1909. Over its 238-year lifespan, the penny outlived the half-penny by 168 years and is survived by other denominations like the nickel and dime. Despite an estimated 300 billion pennies in circulation—amounting to roughly $9 per American—most are underutilized, stored in jars or drawers rather than used in daily commerce.
Discontinuing the penny is already causing practical challenges for retailers, who must adapt to rounding cash transactions to the nearest nickel. For example, Kwik Trip, a Midwest convenience store chain, has opted to round down prices, a decision that could cost the company millions annually due to lost revenue. Other businesses are encouraging customers to use existing pennies, but inconsistent approaches are leading to confusion and potential financial losses across the industry.
Legal complications are emerging in states such as Delaware, Connecticut, Michigan, and Oregon, as well as cities like New York and Philadelphia, where laws require merchants to provide exact change. Additionally, the federal Supplemental Nutrition Assistance Program (SNAP) mandates that recipients not be charged more than other customers, creating conflicts if cash payments are rounded differently from electronic transactions. Retail groups are urgently calling for congressional legislation to standardize rounding practices and avoid fines or legal disputes.
The economic impact extends to consumers, with a Federal Reserve Bank of Richmond study estimating that rounding could cost households about $6 million annually, or five cents per family on average. While this is a modest sum, it underscores the broader inefficiencies of maintaining the penny. Advocates like Mark Weller of Americans for Common Cents describe the transition as chaotic, noting that other countries like Canada and Australia provided clear guidance, whereas the U.S. rollout has been haphazard since Trump’s announcement.
Looking ahead, the penny will remain legal tender, but its production halt reflects a broader trend away from low-value coins in modern economies. The auction of the final minted pennies may attract collectors, symbolizing the end of an era. As businesses and consumers adjust, the penny’s legacy persists in nostalgia, even as its practical role fades, marking a significant milestone in the evolution of American currency.
