You’ve probably got a jar of them sitting on a dresser right now. Or maybe they’re just rolling around in your cup holder, getting sticky from spilled soda. It’s the penny. That tiny, copper-plated piece of zinc that feels more like a nuisance than actual money these days. Every few years, a rumor catches fire on social media: "The Treasury is finally killing the cent!" People get worried. Or they get excited. But honestly, the answer to is the US going to stop making pennies is a lot more complicated than a simple yes or no.
Right now, the United States Mint is still pumping them out by the billions. Literally. In 2023 alone, the Mint produced over 4.5 billion pennies. That’s a staggering amount of metal for something most people won't even bend over to pick up off the sidewalk.
The math just doesn't add up anymore
Here is the kicker. It costs way more than one cent to make a cent. According to the 2023 Annual Report from the U.S. Mint, the unit cost to produce and distribute a penny has soared to about 3.07 cents. We are losing money on every single coin that rolls off the press. It’s a deficit that adds up to tens of millions of dollars annually.
Why is it so expensive? Zinc prices. Most people think pennies are copper. They aren't. Since 1982, they’ve been 97.5% zinc with a thin copper coating. When the price of raw zinc spikes on the global commodities market, the "seigniorage"—which is just the fancy term for the profit or loss a government makes on minting currency—goes deep into the red.
Who is actually fighting to keep it?
You’d think the government would just pull the plug. It seems like a no-brainer. But there are some very powerful forces keeping the penny on life support. One of the biggest players is Americans for Common Cents. They are a lobby group backed by the companies that sell the zinc to the Mint. They argue that if we get rid of the penny, it’ll lead to "rounding up" at the cash register, which they claim acts as a hidden tax on the poor.
There's also the sentimental factor. People love Abraham Lincoln. He was the first historical figure to appear on a US coin back in 1909, marking his 100th birthday. Taking him off the smallest denomination feels, to some, like a slight against a national hero. It sounds silly when you're talking about fiscal policy, but "tradition" carries a lot of weight in Congress.
The "Rounding" fear vs. the reality
The biggest argument against killing the penny is that businesses will round prices up. If your total is $1.02, and there are no pennies, does the shopkeeper charge you $1.00 or $1.05?
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Economists have looked into this. Robert Whaples, an economics professor at Wake Forest University, has done extensive research on the "rounding tax." His findings? It’s basically a wash. Some prices round up, some round down. In the end, the average consumer might lose or gain a few pennies a year. It's negligible.
Canada already did this. In 2013, they stopped distributing their penny. They didn't collapse. People just adjusted. If you pay with a credit card or debit card in Canada, you still pay the exact cent. Rounding only happens with cash. Since we’re moving toward a cashless society anyway, the "rounding tax" argument loses more steam every single day.
Is the US going to stop making pennies because of the "Coin Shortage"?
Remember 2020? Signs were everywhere in grocery stores: "Please use exact change." This wasn't because we stopped making coins. It was because the "circulation" died. Pennies weren't moving. They were stuck in cushions and jars because everyone was staying home and shopping online.
The Fed spent a lot of time trying to get people to bring their change to Coinstar or the bank. It highlighted a weird truth: we have plenty of pennies. We just don't use them. They are a one-way street from the Mint to your dresser drawer.
The environmental cost of a dead coin
Nobody talks about the carbon footprint of the penny. We have to mine the zinc, transport it to the Mint facilities in Philadelphia and Denver, stamp it, and then—here’s the kicker—use heavy armored trucks to drive billions of these coins to banks. All that for a coin that usually ends up in a landfill or a vacuum cleaner.
What the lawmakers are saying
There have been several bills introduced in the House and Senate over the last decade. The COIN Act and various other "Currency Efficiency" proposals have floated around. None have gained real traction.
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Why? Because it's a political "lose-lose." No politician wants to be the one who "raised prices" for the working class, even if that’s not what actually happens. It’s an easy talking point for an opponent in an election year. So, they just kick the can down the road.
Does the Nickel have a target on its back too?
Believe it or not, the nickel is in even worse shape. It costs about 11 cents to make a 5-cent piece. If we kill the penny, the nickel is logically next on the chopping block. Some experts suggest we should move to a system where the dime is the smallest unit of currency. It sounds radical, but we’ve done this before. The US used to have a half-cent coin. We got rid of it in 1857 because it was no longer useful. At the time of its retirement, the half-cent had more purchasing power than today’s dime.
How to handle your own "Penny Problem"
Since the government isn't moving fast, you're stuck with the copper clutter. But there are ways to actually make that "useless" metal work for you.
- Bank Strapping: Most banks will give you paper rollers for free. Spend an hour while watching a movie and roll them up. Most credit unions will take them without a fee if you're a member.
- The Coinstar Hack: Don't let the machine take an 11% cut. If you choose a "eGift Card" (like for Amazon or Starbucks) instead of cash, Coinstar usually waives the fee.
- Self-Checkout Dumps: If you’re at a grocery store with a self-checkout that has a coin hopper, just dump a handful in. It’s the fastest way to get rid of them at face value without feeling like "that person" in a long line.
Look for the "Wheat" and "Steel"
Before you dump them, look for the rarities. If you find a penny from 1943 that looks silver, it’s steel. They made them out of steel during WWII to save copper for the war effort. They aren't worth a fortune, but they're cool. "Wheat" pennies (the ones with stalks of grain on the back instead of the Lincoln Memorial) were made until 1958. Most are only worth a few cents, but certain mint marks can make them worth a few bucks to a collector.
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The likely future
So, is the US going to stop making pennies? Not this year. Probably not next year. But the trend is clear. Digital payments are winning. Physical cash is becoming a niche tool.
Eventually, the cost of zinc will hit a point where the Treasury simply can't ignore the burn rate. When the loss per coin hits 4 or 5 cents, the pressure to modernize will finally outweigh the lobbying power of the zinc industry. Until then, Lincoln stays in your pocket.
Next Steps for You:
Start by cleaning out your coin stashes now. As more retail locations go "card only," it will actually get harder to spend physical pennies. Take your jars to a credit union or use the gift card trick at a kiosk. If you’re a business owner, consider "Swedish rounding" (rounding to the nearest 0.05 for cash transactions) if your state allows it—it saves time and reduces the need to constantly order boxes of cents from the bank. Keep an eye on the U.S. Mint's biennial reports; that’s where the first official signal of a phase-out will actually appear.