You probably have a jar of them. Or maybe they’re rolling around in your cup holder, sticky with spilled soda and ignored. Honestly, most of us treat the penny like trash. It’s the only piece of American currency that people will actually see on the sidewalk and decide it isn’t worth the effort of bending over to pick up. This brings us to the question that seems to pop up every single year: will US stop making pennies?
It costs more to make them than they're worth. Way more. In 2023, the United States Mint spent about 3.07 cents to produce a single one-cent coin. Think about that for a second. We are literally burning money to create money. If you ran a business where you spent three dollars to make a one-dollar product, you’d be out of business by lunchtime. Yet, the Mint keeps the presses rolling, churning out billions of these copper-plated zinc discs every year. It feels like a glitch in the system, but the reasons for its survival are a weird mix of nostalgia, lobbying, and a fear of how it might mess with the price of a gallon of milk.
The math behind the madness
The U.S. Mint isn't exactly thrilled about the situation. According to their own Annual Reports, the penny and the nickel have been "underwater" for years. While the quarter and the dime are massive moneymakers for the government—a process called seigniorage—the penny is a massive drain.
Why is it so expensive? Mostly because of the metal.
Back in the day, pennies were mostly copper. Then 1982 happened. Copper prices spiked, so the Mint switched to a core of 97.5% zinc with a thin copper coating. It worked for a while. But now, even zinc is pricey. When you add in the costs of labor, transportation, and the electricity required to stamp Abraham Lincoln’s face onto metal, the "value" of the penny vanishes.
The government lost over $90 million just making pennies in 2023. That’s not a typo.
Who actually wants to keep the penny?
You’d think the decision to kill the penny would be a slam dunk. Canada did it in 2012. Australia and New Zealand did it decades ago. The world didn't end. People just rounded their cash transactions to the nearest five cents. Simple.
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So why is the U.S. stuck?
Part of it is the "Z-Zinc" factor. There is a very real lobbying effort. Companies like Jarden Zinc Products, based in Tennessee, are the primary suppliers of penny blanks to the Mint. They have a vested interest in making sure the penny stays alive. They hire lobbyists to convince Congress that the penny is "essential" for low-income Americans. The argument is that if we get rid of the penny, businesses will round up prices, essentially creating a "rounding tax" that hurts the poor.
Economists like Robert Whaples have actually studied this. He found that rounding is basically a wash. Sometimes you round up, sometimes you round down. Over a year, the average consumer might lose or gain a few cents. It’s negligible. But the fear of price gouging is a powerful political tool.
Then there’s the emotional side. Americans are weirdly sentimental about their coins. The penny features Lincoln, arguably our most beloved president. Removing him from the pockets of everyday Americans feels, to some, like an insult to his legacy. It’s irrational, but politics is rarely about logic.
The military already killed it (sort of)
If you want to see what a penny-less America looks like, just go to a U.S. military base overseas.
The Department of Defense stopped using pennies at AAFES (Army & Air Force Exchange Service) locations years ago. Why? Because shipping heavy boxes of pennies to bases in Germany or South Korea cost way more than the pennies were worth. They use a simple rounding system. If your total is $1.02, you pay $1.00. If it’s $1.03, you pay $1.05.
It works. Soldiers aren't rioting. The economy of the base hasn't collapsed. It’s a perfect case study that the "rounding tax" fear is largely a myth.
Will US stop making pennies anytime soon?
Congress is the only body with the power to officially kill the coin. Over the years, several bills have been introduced to pause production or eliminate the coin entirely. The "Currency Optimization, Innovation, and National Savings (COINS) Act" has made appearances in various forms, but it usually dies in committee.
There is a middle ground that some experts, like former Mint Director Philip Diehl, have discussed. We could change the metal composition again. Maybe use steel? But even that requires a massive overhaul of the Mint's machinery and wouldn't solve the fact that the coin is functionally useless in modern commerce. You can't use them in vending machines. You can't use them at most laundromats. Most self-checkout machines treat them like a nuisance.
The real death of the penny might not come from a law, but from the "death by a thousand cuts" of digital payments. As more people use Apple Pay, Venmo, and credit cards, the physical penny becomes even more of an abstraction. We aren't carrying change, so we don't notice it’s gone.
What happens if the penny dies?
If the US finally decides to stop making pennies, a few things will happen immediately.
First, cash transactions will be rounded. It’s important to clarify that this only applies to cash. If you pay with a card, you’ll still be charged $9.99. But if you hand over a ten-dollar bill, you just won't get that cent back.
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Second, the Mint will save millions of dollars almost instantly. That’s money that could, in theory, be used to reduce the deficit or fund other programs.
Third, the nickel becomes the new "problem child." Once the penny is gone, people start looking at the nickel, which also costs more than five cents to make. It’s a domino effect.
Actionable steps for your "worthless" coins
Since the penny is still legal tender, you might as well make it work for you. Don't let them sit in a jar forever.
- Use the Coinstar trick: Most people hate the 11-12% fee Coinstar charges. But, if you choose the "eGift Card" option (like Amazon or Starbucks), they usually waive the fee entirely. You get 100% of your money.
- Dump them at the bank: Some credit unions and banks still have free coin counting machines for members. Call ahead. Don't be the person who brings in 5,000 unrolled pennies to a teller on a Friday afternoon.
- Check for "Wheaties": Before you dump them, look for pennies minted before 1958. These "Wheat Pennies" are often worth 3 to 5 cents to collectors, and some rare dates can be worth hundreds. It’s a tiny bit of effort for a potential payoff.
- Self-checkout clearing: If you have a pocket full of copper, use the self-checkout at the grocery store. Most of those machines will take as many coins as you can feed them. It's a great way to lower your grocery bill by $1.42 using "trash."
The penny is a survivor. It has outlived its usefulness by decades, fueled by a mix of corporate interests and American stubbornness. While the question of will US stop making pennies doesn't have a "yes" on the calendar for 2026, the economic pressure is building. Eventually, the math will simply become too loud to ignore.
Until then, keep an eye on your change. That little piece of zinc might be a nuisance, but it’s a fascinating window into how slowly the wheels of government actually turn.
Don't wait for the government to act. Clear out your coin jars now. Whether you donate them to charity or turn them into an Amazon gift card, those pennies are better off in the economy than sitting in a dusty jar on your dresser.