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- According to the U.S. Mint, the penny, which now costs just under 4 cents to produce, was one of the first coins it made after its establishment in 1792.
Signs across Mississippi are popping up in retail stores notifying cash customers that they will soon begin rounding to the nearest increment of five cents as the U.S. Mint ceases production of the penny.
The U.S. Mint in Philadelphia, Pennsylvania will produce its last 1 cent coin on Wednesday after President Donald Trump ordered penny production to cease earlier this year. Trump wrote in a social media post in February that continuing to produce pennies was “wasteful” as it costs more than double to produce the coin.
According to the U.S. Mint, the penny, which now costs just under 4 cents to produce, was one of the first coins it made after its establishment in 1792.
“The design on the first penny was of a woman with flowing hair symbolizing liberty. The coin was larger and made of pure copper, while today’s smaller coin is made of copper and zinc,” the U.S. Mint states.
Former President Abraham Lincoln was added to the penny in 1909 in honor of his 100th birthday.
By ending the production of the penny, the U.S. Mint projects that in the 2026 fiscal year it would save $66 million as well as allow for “identifying process improvements and cost
reductions across other spending categories” such as telecommunications, contract services,
and printing, among others.
However, the U.S. Mint has noted that the cost to produce nickels is even more expensive to produce than the penny, coming in at nearly 14 cents per 5-cent coin. By comparison, the quarter costs roughly 15 cents and the dime about 6 cents to produce.
The U.S. Mint has estimated that there are roughly 250 billion pennies currently in circulation across the nation. Collectors are sure to begin hoarding what they can in hopes of the coins’ value increasing as circulation numbers decline.
Critics have questioned the rounding by retailers, as they say it equates to higher prices even if by a few cents. Yet, for retailers with penny shortages soon to be an issue, they are left with little direction or options otherwise.
Ending penny production is not a new idea. Former President Barrack Obama noted the waste from producing the 1 cent coin during his time in the White House. Globally, other countries such as Canada, Australia, and Sweden have also stopped minting the coins.
Frank Corder
