PENNY ERA OVER – Trump ENDS It!

Daily Report May 24,2025

After 230 years of circulation, the U.S. Treasury is finally ending penny production due to unsustainable costs, marking the end of an era for America’s smallest denomination coin.

At a Glance

The U.S. Treasury will stop making pennies by early 2026, after the final order of blanks is exhausted
Each penny costs approximately 3.7 cents to produce and distribute, resulting in an $85 million loss last year
The decision will save approximately $56 million annually
President Trump directed the Treasury to stop minting pennies, calling them “wasteful”
Americans can continue using the estimated 114 billion pennies already in circulation

Financial Logic Behind Ending Penny Production

The U.S. Treasury Department’s decision to end penny production comes after years of financial losses. Each penny costs approximately 3.7 cents to manufacture and distribute, significantly more than its face value. This cost discrepancy resulted in the government losing $85 million in 2023 alone on penny production. Rising material costs have exacerbated the situation, with zinc prices more than doubling since 2000. Pennies are primarily made of zinc with a copper overlay.

Watch coverage here.

President Trump specifically directed the Treasury to cease minting new pennies, citing economic waste as the primary motivation. The final order for penny blanks has already been placed, with production scheduled to end when these materials run out in early 2026. By eliminating penny production, the U.S. Mint expects to save approximately $56 million annually, representing a significant cost reduction.

/div>

Presidential Directive and Previous Considerations

The decision to end penny production aligns with President Trump’s fiscal priorities. He issued clear instructions to the Treasury Secretary regarding the penny’s future, highlighting the economic inefficiency of continuing to produce the coin.

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” – Mr. Trump.

This isn’t the first time ending penny production has been considered. Previous administrations, including under Treasury Secretary Jacob Lew in 2015, explored similar measures due to rising production costs. The penny has become increasingly burdensome on federal finances as material and manufacturing expenses continue to climb. Americans reportedly throw away approximately $68 million in coins annually, further supporting the argument that penny production has become economically untenable.

Practical Impact and Historical Significance

Despite the end of production, Americans can continue using the estimated 114 billion pennies already in circulation. However, as these coins gradually disappear from active use, businesses will need to adapt. Many retailers are expected to adjust their pricing strategies to work with nickel-based transactions, rounding prices to the nearest five cents. The demand for pennies has been steadily decreasing, with production already declining to 3.2 billion in 2024.

“I have instructed my Secretary of the US Treasury to stop producing new pennies.” – Mr. Trump.

The penny’s retirement marks the end of a significant chapter in American coinage history. The coin has been in circulation since the U.S. Mint’s founding in 1792, when it was originally made of pure copper. In 1909, Abraham Lincoln became the first real person featured on a U.S. coin when his profile was added to the penny, a design that has remained largely unchanged for over a century. After more than 230 years, this small but ubiquitous piece of American currency will transition from an everyday monetary instrument to a historical artifact.