The US Mint in Philadelphia is set to strike its last circulating penny on Wednesday, following President Donald Trump's order to cancel the one-cent coin due to rising production costs. The cost to produce a single penny has climbed to nearly four cents, making it economically inefficient.
The Mint has been producing pennies in Philadelphia since 1793, a year after the Coinage Act was passed. Today, billions of pennies are in circulation, but they are rarely essential for modern financial transactions. Trump stated in an online post in February that minting pennies is wasteful, as they cost more than two cents to produce.
Despite nostalgia for the coin, some retailers have voiced concerns over the abrupt phase-out, which came with no federal guidance on handling transactions. Some businesses have rounded prices down, asked customers for exact change, or offered incentives like free drinks for penny exchanges. Jeff Lenard of the National Association of Convenience Stores noted that while they have advocated for abolition for 30 years, this was not the desired approach.
Banks have begun rationing penny supplies, a paradoxical outcome given the perceived glut of coins. Over the past century, about half of all coins produced at US Mints in Philadelphia and Denver have been pennies. The Treasury Department expects to save $56 million annually by ceasing production.
In 1793, a penny could buy a biscuit, candle, or piece of candy. Today, many pennies sit in drawers or jars, collected as keepsakes or discarded.
