The penny, that tiny copper coin you’ve probably lost in your couch cushions more times than you can count, is finally being retired. That’s right—the U.S. government is phasing out production of the one-cent coin, a move backed by both Republicans and Democrats and led by President Donald Trump.
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Let me walk you through what’s happening and what it means for you.
Why Penny’s days are numbered
For years now, the penny has cost more to make than it’s worth. According to the U.S. Treasury, it currently takes almost 4 cents to produce just one penny. Multiply that by billions, and the math becomes impossible to ignore. Ending production is expected to save the government about $56 million a year. That’s not pocket change.
Trump called it out plainly on Truth Social, saying, “This is so wasteful!” He’s ordered the Treasury to stop making new pennies, and they’ve already placed their final order of blank coins. By early 2026, new pennies will stop entering circulation altogether.
How will this affect everyday transactions?
Once the penny disappears from circulation, you might be wondering what happens when prices don’t end in a 5 or 0. Great question.
Here’s the plan: Businesses will round transactions to the nearest nickel. So if your total comes to $9.97, you’d pay $10. If it’s $9.93, you’d pay $9.95. Electronic payments will still be charged to the exact cent, but cash transactions will involve rounding.
It’s not as strange as it sounds—many countries, like Canada and Australia, have already done this with little impact on consumers.
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Bipartisan support: A rare moment of unity
This move isn’t just about dollars and cents—it’s also a rare example of political unity. Two bipartisan bills were introduced in Congress this year: the Make Sense Not Cents Act and the Common Cents Act. Senators and Representatives from both sides of the aisle agree that it’s time to move on from the penny.
Senator Mike Lee of Utah and Senator Jeff Merkley of Oregon teamed up for one proposal, while a second came from Representatives Lisa McClain and Robert Garcia, alongside Senators Cynthia Lummis and Kirsten Gillibrand. Everyone seems to agree: it no longer makes economic sense to keep the penny.
A long history comes to a close
The penny has a long and proud history—it was one of the very first coins made by the U.S. Mint back in 1792. Today, there are about 114 billion of them floating around. But the truth is, most people don’t use them. They sit in jars, drawers, and car cupholders.
By the time 2026 rolls around, the last of the new pennies will have entered circulation, and businesses will be adjusting. If you’re someone who still collects coins or cherishes that Lincoln profile, now might be the time to hold on tight to your stash.
So, say your goodbyes—because the penny, after more than two centuries, is finally making its exit.
