Farewell to the Penny: US Treasury Mints Final One-Cent Coin

On November 13, 2025, the US Treasury minted its final penny, marking the end of the one-cent coin's 232-year history. The decision to discontinue the penny was driven by the high cost of production and the coin's diminishing purchasing power.

According to the US Mint's 2024 report, each penny now costs 3.69 cents to produce, up from 1.42 cents a decade ago. This meant the US Mint was burning millions of dollars every year just to keep the penny in circulation. The White House's Department of Government Efficiency estimated the expected savings from the penny's removal to be around $56 million annually.

The penny's demise also reflects the steady erosion of its buying power due to inflation. With the cost of goods and services steadily rising, the humble penny has become increasingly irrelevant. For example, a single penny would now be insufficient to purchase even a basic lunch item.

While the news of the penny's retirement may evoke nostalgia, experts argue that the decision was the right call. Canada successfully removed its penny from circulation in 2012, providing a model for the US to follow. The Canadian Mint's multi-year effort to educate the public and facilitate the return of over 6 billion pennies helped ensure a smooth transition to a "penniless" future.

As the US moves forward without the penny, retailers and businesses will need guidance from Congress on how to handle the phaseout and pricing adjustments. However, with the support of both political parties, the US appears poised to embrace a new era where the once-ubiquitous penny is consigned to history.