The U.S. Treasury has announced plans to end the production of the penny beginning in 2026, citing rising costs and declining use of the one-cent coin in everyday transactions.
Currently, it costs more than 2 cents to produce a single penny, and with the shift toward digital payments and rounding systems, officials say the coin no longer serves a practical financial purpose.
The decision follows years of debate and economic analysis, with many experts supporting the move as a way to save taxpayer money and modernize the nation’s currency system.
While existing pennies will remain legal tender, future cash transactions will likely adopt rounding practices similar to other countries that have phased out low-denomination coins.
As the U.S. prepares to say goodbye to a coin that’s been in circulation since 1793, the change reflects more than just monetary policy — it’s a sign of evolving habits in how people spend, save, and pay.
