In a monumental step, the U.S. Treasury has announced that it will end penny production, a move long overdue given the waste of taxpayer money on a coin losing its place in modern transactions.
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Despite the historical nostalgia, this step aligns with common-sense budgeting policies that clearly eluded previous administrations.
President Trump’s order marks a significant victory in curbing budget wasteful spending.
The U.S. Treasury Department has officially placed the final order for penny blanks, signaling the end of penny production by early 2026.
This decision comes as the production cost of a penny surged to 3.69 cents in 2024.
Simply put, each penny minted wastes more than two cents in taxpayer money.
President Trump previously ordered a halt to new penny production in February as part of his efforts to cut budget waste.
“Rip the waste out of our great nation’s budget, even if it’s a penny at a time,” he stated when announcing this bold move.
As the world’s most prominent economy, the United States simply cannot afford to produce currency at a loss.
Halting penny production will save approximately $56 million annually in material costs alone.
With inflation concerns mounting and fiscal responsibility becoming more crucial than ever, this decision stands as a step in the right direction.
Less than 20% of payments are made with cash today, reducing the utility of coins in everyday exchanges.
The U.S. Mint isn’t just losing money on pennies. Nickels cost 13.78 cents each to produce.
Treasury Secretary Scott Bessent noted the potential for breaking even on nickel production by altering their composition.
Meanwhile, dimes remain a profitable endeavor, securing their continuity even as the penny fades away.
This transition might lead stores to round to the nearest nickel, but as digital transactions rise, this issue might not impact everyday Americans significantly.
With over 114 billion pennies in circulation, they will remain legal tender, although their symbolic and transactional relevance will certainly diminish.
đź’° The penny's days are numbered. The Treasury Department said Thursday that new penny production will stop in 2026, ending the coin's more than 200-year run pic.twitter.com/pFwb918zQL
— 1010 WINS on 92.3 FM (@1010WINS) May 22, 2025
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” President Trump has declared.
As the penny bids farewell, this should serve as a reminder of the need to hold our government accountable.
Prioritizing efficiency in currency production and using taxpayer dollars wisely should always be at the forefront of any administration’s agenda.
