The U.S. Treasury Department is phasing out the production of new pennies after more than 200 years of use.
According to the U.S. Mint, the Treasury’s in-house coin producer, there are roughly 114 billion pennies in circulation in the United Sate, but the Treasury says they are greatly underutilized.
“Despite being a staple of American currency since 1793, the penny has become an increasingly expensive coin to produce.”
The move is expected to save $56 million annually in reduced material costs, as the penny costs nearly 4 cents to make.
While a precise timeline hasn’t been released for when the final penny blanks – metal blanks used to create the coins – will run out, it is expected to be early “2026.”
According to the Wall Street Journal, consumers will still be able to use pennies in cash transactions after production stops. However, as pennies fade from circulation, businesses will have to adjust pricing.
