Honestly, the penny has been on life support for a long time. We all knew it. You probably have a jar of them sitting on a dresser right now, gathering dust because they’re more of a hassle to carry than they are worth to spend. But things got real on February 9, 2025. That was the day President Donald Trump officially pulled the plug, ordering Treasury Secretary Scott Bessent to stop the presses—literally.
The order was simple: stop making new pennies.
It sounds like a small thing, right? Just a tiny copper-colored coin. But this move has triggered a massive shift in how American cash works. While the "Lincoln" has been around since 1909, its time as a newly minted product of the U.S. government is over. On November 12, 2025, the Philadelphia Mint struck the very last circulating penny, ending a 232-year run.
Why the Government Finally Walked Away
Basically, it comes down to a math problem that would make any business owner cringe. For nearly twenty years, it has cost the U.S. Mint more to make a penny than the coin is actually worth.
Think about that.
According to the U.S. Mint’s 2024 annual report, it cost 3.69 cents to produce a single one-cent piece. If you ran a lemonade stand and spent nearly four cents to make every one-cent cup of juice, you’d be out of business by lunch. By halting production, the Treasury is looking at an immediate annual saving of about $56 million.
👉 See also: Why Toys R Us is Actually Making a Massive Comeback Right Now
When Trump gave the order to Secretary Bessent, he called the process "wasteful." And he wasn't wrong. In 2024 alone, the government lost $85.3 million just by keeping the penny alive. It’s what economists call "negative seigniorage." Usually, the government makes a profit on money (it costs less than 20 cents to print a $100 bill), but the penny was a total money pit.
Can the President Actually Do That?
There’s been a lot of chatter about whether this was even legal. Usually, Congress has the final say on what our money looks like and what it's made of. But there's a specific loophole in the U.S. Code (31 U.S.C. § 5111) that gives the Treasury Secretary the power to mint coins in "amounts the Secretary decides are necessary."
Secretary Bessent, backed by the White House, simply decided the necessary amount was zero.
It’s a clever bit of lawyering. While Trump couldn't "ban" the penny—only Congress can officially "demonetize" it—he could effectively starve the supply. If no new ones are being born, the species eventually goes extinct.
The Lobbying War You Didn't See
This wasn't a clean fight. For years, the "zinc lobby"—specifically companies like Jarden Zinc Products that sell the metal blanks to the Mint—fought tooth and nail to keep the penny. Modern pennies are actually 97.5% zinc with just a thin copper coating. If you stop making billions of pennies, those companies lose a massive customer. They argued for years that without the penny, prices would spike and the poor would be hit hardest by "rounding up."
✨ Don't miss: Price of Tesla Stock Today: Why Everyone is Watching January 28
But the data from countries like Canada and Australia, which ditched their smallest coins years ago, showed that didn't really happen.
How "Cash Rounding" Works Now
So, what happens when you go to the store today? This is where people get confused.
First: The penny is still legal tender. You can still spend the ones you have. There are an estimated 114 billion to 240 billion pennies currently in "circulation" (though most are probably under car seats). The Federal Reserve said they’ll keep moving those existing coins around for as long as possible.
Second: It only affects cash. If you’re paying with a credit card, debit card, or Apple Pay, nothing changes. Your total is $10.03? You pay $10.03.
Third: The Rounding Rule. For cash transactions, businesses are now moving toward "symmetrical rounding." It’s pretty straightforward:
🔗 Read more: GA 30084 from Georgia Ports Authority: The Truth Behind the Zip Code
- If your total ends in .01, .02, .06, or .07, it rounds down to the nearest nickel.
- If your total ends in .03, .04, .08, or .09, it rounds up to the nearest nickel.
It sort of balances out in the end. Sometimes you lose two cents, sometimes you gain two cents. Most major retailers like Walmart and McDonald's have already updated their point-of-sale systems to handle this automatically.
The "Nickel Problem" Nobody Is Talking About
Here’s the catch. If the penny is gone, we need more nickels, right?
Well, the nickel is an even bigger disaster for the Treasury. In 2024, it cost nearly 14 cents to make a 5-cent coin. By killing the penny, we might actually be forcing the Mint to make more nickels, which loses even more money per coin.
There is already talk in Washington—specifically through the "Common Cents Act" introduced in late 2025—about changing the metal composition of the nickel to something cheaper, like steel, to avoid another fiscal hole.
What You Should Do With Your Pennies
If you have a mountain of copper sitting in a 5-gallon water jug, don't panic. You don't have to rush to the bank tomorrow. However, as the supply of new pennies dries up, banks are becoming more hesitant to give them out.
- Spend them now: Use your pennies at self-checkout machines while they still have the slots for them. It’s the easiest way to clear them out without a fee.
- Coinstar it: Most grocery store kiosks will take them, though they usually take a cut unless you opt for a gift card.
- Check for "Wheats": Before you dump them, look for pennies from 1958 or earlier (the ones with wheat stalks on the back). Some of these are worth way more than a cent to collectors, especially now that the era of the penny is officially closing.
- Charity: Many nonprofits are doing "Last Penny" drives. It's a great way to get rid of the weight in your pocket for a good cause.
The reality is that we're moving toward a cashless society anyway. Trump’s order to the Treasury Secretary was just the final nudge to move the U.S. into the same league as Canada, the UK, and dozens of other countries that realized a long time ago that small change is just a big headache.
Actionable Next Steps:
Check your local bank's policy on coin deposits. As of January 2026, many branches are requiring coins to be rolled rather than accepted loose due to the high volume of people "dumping" their stashes following the production halt. If you own a small business, update your checkout signage to clearly state your rounding policy for cash transactions to avoid friction at the register.