Treasury Department Officially Discontinues Pennies Starting in 2026. What Happens When There Are No New Pennies?

The U.S. authorities took different measurement toward eliminating nan penny this month, pinch nan Treasury Department placing its last bid of penny blanks to people caller one-cent coins.

The move came aft President Donald Trump announced connected Feb. 9 that he had instructed Treasury Secretary Scott Bessent to “stop producing caller pennies.”

"For acold excessively agelong nan United States has minted pennies which virtually costs america much than 2 cents," Trump wrote connected Truth Social. "This is truthful wasteful!"

"Let's rip nan discarded retired of our awesome nation's budget, moreover if it's a penny astatine a time," nan president added. 

Eliminating nan penny has been a bipartisan rumor for years, pinch some Trump and President Barack Obama, arsenic good arsenic some chambers of Congress, calling for an extremity to nan one-cent coin.

The president is besides correct successful calling nan penny “wasteful,” moreover underestimating nan cost.

Over nan past 10 years, nan Treasury estimates that nan costs of producing 1 penny has risen from 1.3 cents to 3.7 cents. In February, nan U.S. Mint estimated that it mislaid astir $85 cardinal producing 3 cardinal pennies successful 2024.

Moreover, The Wall Street Journal reported successful April 2024 that Americans propulsion retired up to $68 cardinal successful alteration per year, pinch millions much languishing successful coin dishes, piggy banks and different keepsake vessels.

The statement is, if nan coins aren’t circulating, past it’s worthy redeeming nan money and ceasing production.

What happens erstwhile location are nary much pennies?

The existent scheme is for nan Treasury to extremity putting caller pennies into circulation in early 2026, erstwhile it has vanished minting its last batch of penny blanks. After that, it will return years for nan coins to rhythm retired of nationalist usage entirely.

With integer costs already being nan superior method of transaction for a mostly of American businesses, nan “change” will mean astir things mostly enactment nan same.

For rate transactions requiring cents, nan U.S. will apt travel nan lead of Canada — which stopped accumulation of its one-cent portion successful 2012 — and make those information to multiples of five. The Treasury has said that authorities and section governments will beryllium responsible for providing guidance to retailers truthful that income taxes are decently collected.

The first penny was produced successful 1787, and, until 1857, nan coins were 100% copper. Today's pennies are copper-plated zinc, including conscionable 2.5% copper.

The coin was first printed pinch nan image of nan goddess of Liberty and her Phrygian cap, however, nan image of President Abraham Lincoln became nan coin’s symbolic look successful 1909, nan centennial of his birth.

The Treasury estimates that location are astir 114 cardinal pennies presently successful circulation successful nan U.S.