The Death of the Penny

Maria Tsevdos '26

On November 12th, 2025, the United States minted the last penny. As they will no longer be put into circulation, these pennies are expected to be auctioned instead. Up until this November, pennies have been a part of the United States currency for 233 years. So, what factors led the government to stop minting these coins? And, how will the absence of these coins affect the general public?

In February of 2025, President Trump ordered the Treasury Department to stop minting pennies. According to the president, the production of pennies was an excessive and inefficient use of government money, as the money put into minting pennies was not equal to their value. In 2023, minting almost five billion pennies cost around $179 million. On average, a penny costs 3.69 cents to make. 

Businesses throughout the nation have already felt the effects of this decision. Many stores are running short on pennies. To avoid using them for change, different businesses have taken up different strategies. Some stores have begun to round the price up, while others have begun to round down. Some stores have even begun asking customers to round up for donations. 

However, difficulties have already come to light. If stores round prices down, this can, over time, negatively impact their business. Some stores wish to round to the nearest nickel, but laws prevent that. So, businesses have begun asking for a federal law to be passed that will support rounding to the nearest nickel. In addition, the lack of pennies has also begun to create issues involving sales tax collection and calculation. 

Though there is a relative penny shortage, there are still currently 250 billion pennies in circulation. Because of this, they are still legal tender and can be used for purchases. However, with the majority of Federal Reserve coin terminal facilities no longer distributing or accepting pennies, the amount of these coins in circulation will decrease.