The United States Mint in Philadelphia is set to strike its last circulating penny on Wednesday, following an order from President Donald Trump to discontinue the one-cent coin due to rising production costs.
The cost to produce a single penny has risen to nearly four cents, making it economically inefficient. Trump announced the decision in a February online post, calling the minting of pennies wasteful. The Treasury Department expects to save $56 million annually by ceasing production.
The penny has been minted in Philadelphia since 1793, and billions remain in circulation. However, their use in modern transactions has dwindled, with many ending up in jars or drawers. The phase-out has been abrupt, leaving retailers without federal guidance on handling cash transactions. Some have rounded prices down, while others have offered incentives for customers to bring exact change or exchange pennies for prizes.
Jeff Lenard of the National Association of Convenience Stores expressed concern, stating the industry had advocated for abolition for 30 years but not in this manner. Some banks have begun rationing penny supplies, a paradoxical outcome given the perceived glut of coins.
Despite the penny's demise, the nickel remains more costly to produce, at nearly 14 cents per coin, compared to the dime at under six cents and the quarter at nearly 15 cents.
