The End of the Penny: What Happens Now That the U.S. Is Phasing It Out
Change is coming—literally.
After more than two centuries in circulation, the penny’s days are numbered.
Earlier this year, President Donald Trump ordered the Treasury Department to stop minting pennies, citing their costliness. His decision followed a 2025 recommendation from the Department of Government Efficiency (DOGE)—then headed by Elon Musk—which argued that the U.S. should stop making the coin altogether.
According to the U.S. Mint, producing 4.5 billion pennies in fiscal year 2023 cost over $179 million, with each penny costing 3.69 cents to make. Simply put, it costs far more to produce a penny than the coin is actually worth.
Stores Already Feeling the Shortage
Some stores have already run out of pennies, forcing them to round prices up or down to the nearest nickel. Even major chains like McDonald’s have been affected.
“Some businesses are asking cash-paying customers to voluntarily round up for donations to avoid needing pennies to make change,” explained Brandon Sheridan, an economics professor at Elon University. Others, he said, are rounding down across the board—a move that could become expensive over time.
The problem? Rounding laws vary by state, and some still prohibit rounding transactions to the nearest five cents. Retailers are calling for a federal law to clarify how businesses should handle cash payments without pennies.
Retailers and Tax Experts See Complications Ahead
Beyond small transactions, the penny’s demise could cause headaches for retailers’ point-of-sale systems, tax reporting, and compliance.
A recent PwC brief warned that without uniform federal or state rules, businesses operating in multiple states could face “increased audit risk” due to inconsistent rounding practices.
Can You Still Use Pennies?
Yes—for now.
Even though the U.S. Mint has stopped producing them, pennies remain legal tender, and there are around 250 billionstill in circulation, according to the American Banking Association.
However, their circulation is slowing fast. “Nearly two-thirds of Federal Reserve coin terminals are no longer taking or distributing pennies,” said Bill Maurer, dean of social sciences at UC Irvine. As those facilities phase out penny distribution, expect to see fewer and fewer of the copper coins in your change jar.
Over time, experts believe this will push even more businesses to go cashless, accelerating the shift to digital payments.
Is the Nickel Next?
Maybe—but not right away.
The U.S. Mint reports that each nickel costs more than 13 cents to produce, but the math for eliminating it isn’t as simple. Sheridan noted that rounding to the nearest nickel would cost consumers about $6 million, while rounding to the nearest dime would cost around $56 million. So, for now, nickels are safe.
A Long History of Penny Problems
The idea of ditching the penny isn’t new. Lawmakers have floated the idea for decades, from The Price Rounding Act of 1989 to the COINS Act of 2017, introduced by Senators John McCain and Mike Enzi. But until now, no effort has made it past Congress.
Pennies have been part of U.S. currency since 1792, originally featuring an image of Lady Liberty. In 1909, Abraham Lincoln became the first U.S. president to appear on a coin, marking 100 years since his birth.
Are Pennies Worth More Now?
Not really—unless you happen to find one of the ultra-rare 1943 copper Lincoln wheat pennies.
These coins, mistakenly struck in copper during World War II, can fetch anywhere from $100,000 to $250,000, according to rare coin experts.
While you probably won’t find one of those in your couch cushions, you might still have a little hidden treasure. The average U.S. household has between $60 and $90 in loose change sitting around, according to the Federal Reserve. Time to cash it in before the penny fades into history.
Final Thoughts
The end of the penny marks the start of a new era for American currency—one where digital payments, rounding policies, and efficiency take center stage.
So, the next time you fish out a penny, take a moment. It might be one of the last you’ll ever hold.
Frank
