You’ve probably seen the headlines or heard someone at the checkout counter grumble about it. Maybe you have a jar sitting on your dresser right now, gathering dust and looking increasingly like a relic of a bygone era. The question of are pennies being discontinued pops up every few years like clockwork, usually fueled by a viral social media post or a slow news day.
The short answer? No. Not yet.
The U.S. Mint is still cranking them out by the billions. Honestly, it’s a weird situation. We are spending millions of dollars to make something that most people don't even want to carry in their pockets. It’s a classic case of tradition clashing with cold, hard math. While countries like Canada and Australia killed off their one-cent pieces years ago, the United States is clinging to the Lincoln cent with a grip that’s surprisingly tight.
The Economic Absurdity of the One-Cent Piece
Let’s look at the numbers because they are genuinely wild.
According to the U.S. Mint’s 2024 Annual Report, it currently costs about 3.4 cents to manufacture a single penny. Read that again. We are paying over three cents to create one cent of value. If that sounds like a bad business model, that’s because it is. In the fiscal year 2023 alone, the Mint lost over $90 million just making pennies.
Why does it cost so much? Copper is expensive. Well, technically, the penny is 97.5% zinc with a thin copper plating, but the price of zinc has been volatile. When you factor in the manufacturing labor, the shipping costs (pennies are heavy!), and the electricity to run the presses at the Philadelphia and Denver Mints, the "seigniorage"—which is the profit a government makes by issuing currency—is deep in the red.
It’s a bizarre financial leak.
Why Haven't We Stopped?
If it's losing money, why is the question of are pennies being discontinued still met with a "no"? It isn't just bureaucratic laziness. There are some heavy-hitting interest groups involved here.
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One of the biggest players is Americans for Common Cent. They’re a lobby group largely funded by Jarden Zinc Products, the company that—you guessed it—supplies the zinc blanks to the Mint. They argue that the penny prevents inflation. The logic is that if we scrap the penny, businesses will round up prices to the nearest nickel. A $0.99 coffee becomes $1.00. Over millions of transactions, they claim this "rounding tax" would hurt low-income families the most.
But then you have economists like Robert Whaples from Wake Forest University. He’s done extensive research suggesting that rounding actually evens out in the long run. Sometimes you round up, sometimes you round down. It’s a wash. Plus, most of us use cards or phones to pay now anyway. Digital transactions don't need to be rounded. If your total is $10.02, your bank account hits exactly $10.02.
The "rounding tax" argument is losing its teeth in a digital world.
The Sentimentality Factor
Don't underestimate the power of nostalgia. Abraham Lincoln is a beloved figure. Removing him from the most common coin in circulation feels, to some, like a slight against his legacy. We’ve had the Lincoln cent since 1909. It was the first U.S. coin to feature a real person rather than an allegorical figure like "Liberty."
People like the clink of change. They like the idea of a "lucky penny."
Lessons From North of the Border
If you want to see what happens when the penny actually dies, look at Canada. They pulled the plug in 2013. The Royal Canadian Mint stopped distributing them, and guess what? The sky didn't fall.
In Canada, cash transactions are rounded to the nearest five cents. If your bill is $1.02, you pay $1.00. If it’s $1.07, you pay $1.05. If it’s $1.08, you pay $1.10. It’s simple. It’s fast. Merchants love it because they don't have to fumble with tiny coins that get stuck in the cracks of the register.
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The Canadian government saved an estimated $11 million per year by making this move. While that’s a drop in the bucket for a federal budget, it’s still money that isn't being set on fire to produce something people literally throw in the trash.
The Environment and the Penny
Something we rarely talk about is the environmental cost. Mining zinc and copper is a resource-intensive process. We are digging holes in the ground, transporting raw materials across the country, smelting them at high temperatures, and then trucking heavy bags of coins to banks—all for a coin that usually ends up under a couch cushion or in a landfill.
It’s an ecological nightmare for a denomination that has lost 95% of its purchasing power since it was first introduced. In 1910, a penny could actually buy something. A piece of candy. A newspaper. Today? It buys nothing. You can’t even use them in most vending machines or parking meters.
So, Will It Ever Actually Happen?
The debate about are pennies being discontinued usually reaches Congress every few sessions. There have been several bills, like the Currency Efficiency Act, that aimed to pause penny production.
Usually, they die in committee.
Why? Because it’s a low-priority issue for most politicians. Killing the penny doesn't win votes, but it might annoy a very specific group of vocal traditionalists or lobbyists. Most lawmakers would rather focus on things that move the needle during election cycles.
However, we are seeing a "soft" discontinuation. Many small businesses are already taking matters into their own hands. Have you noticed the "Take a Penny, Leave a Penny" jars are disappearing? Or that some "cash-only" spots are just rounding your total down to the nearest nickel because they don't want to deal with the rolls?
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The penny is dying a slow, natural death by irrelevance, even if the government hasn't signed the death certificate.
What You Should Do With Your Pennies
If you’re sitting on a mountain of copper-colored coins, you have a few options that are better than letting them rot in a jar.
- Coinstar is a trap... mostly. They take a massive cut (often around 11-12%). Unless you’re getting a gift card (which usually has 0% fee), you’re better off taking them to a bank.
- Check for "Wheaties." Before you dump them, look at the back. Pennies from 1909 to 1958 have wheat stalks on the back. Most are only worth a few cents, but certain years (like the 1909-S VDB) are worth thousands.
- The 1943 Steel Penny. During WWII, copper was needed for the war effort, so they made pennies out of zinc-coated steel. They’re silver-colored. If you find a copper one from 1943, call an appraiser immediately—it’s a mint error worth a fortune.
- Self-checkout lanes. If you're embarrassed to hand a cashier $4.00 in pennies, use the self-checkout at the grocery store. Most of them have a coin slot that can take a steady stream of change. It’s a great way to clear out your stash while paying for your milk.
The Reality of Currency Evolution
Currency isn't static. We used to have half-cent coins. We stopped making those in 1857 because they became too expensive and weren't useful. The penny is in that exact same spot right now. It has outlived its utility.
While the official answer to are pennies being discontinued is currently "no," the momentum is shifting. As inflation continues to erode the value of a cent, the argument for keeping it becomes more absurd every year. We are essentially using a 19th-century tool to navigate a 21st-century economy.
Eventually, the math will simply become too loud to ignore.
Actionable Steps for the "Penny-Wise"
If you want to stay ahead of the curve, start by changing how you handle physical change.
- Stop saving them. The "jar of pennies" is a psychological trick. It feels like you're saving, but you're actually holding onto a depreciating asset that is a hassle to liquidate.
- Use exact change. If you still use cash, try to spend your pennies as you get them. It keeps your wallet light and prevents the "hoarding" cycle.
- Donate them. Many charities have "Penny Drives." For a non-profit, $50 in pennies is still $50 they didn't have before. It’s the best way to turn "trash" into something meaningful.
- Monitor the U.S. Mint's site. If you're a collector, keep an eye on the Mint's production schedules. The final year of the penny—whenever that happens—will be a massive event for numismatists.
The penny is a survivor. It has survived wars, depressions, and the rise of Bitcoin. But even the sturdiest traditions eventually fade. Whether it happens in two years or ten, the age of the penny is drawing to a close. Enjoy the copper while you can, or better yet, get rid of it while it's still worth at least one cent.
Source References:
- United States Mint Annual Report (FY 2023/2024)
- Journal of Economic Perspectives - "The Case for Abolishing the Penny" by Robert Whaples
- Royal Canadian Mint - Impact Study on the Phasing Out of the Penny
- Americans for Common Cent - Policy Position Papers