Coin Manufacture: U.S. Suspends Production of Penny Coins - Discontinuation of Penny Production: United States Plans to Halt One-Cent Coin Manufacturing
Starting from 2026, the U.S. will halt the production of the one-cent coin following an announcement by the Department of the Treasury. The last order for penny blanks was placed this month, meaning new coins of this denomination will no longer be minted from early 2026.
The step is supported by both political parties due to escalating production costs. Over the past decade, costs have grown from 1.3 cents per coin to 3.69 cents today. The move is projected to save $56 million annually. President Donald Trump, in February, instructed Treasury Secretary Steven Mnuchin to end the coin's production. In future transactions, amounts will be rounded to the nearest five-cent value.
In the U.S., the coin is popularly referred to as a "nickel," despite its name being inaccurate. There are roughly 114 billion pennies currently in circulation. The coin was first issued by the U.S. government in 1793, and President Abraham Lincoln's image has been on it since 1909.
In a similar move, the smallest coin in the Eurozone, the one-cent coin, has been a subject of controversy. Some countries, like Finland, have phased out its use. In March 2025, the National Cash Forum in Germany recommended rounding cash payments to the nearest five Euro-cents, which would make two-cent coins unnecessary as they have no equivalent in U.S. denomination.
However, unlike the U.S., there are no reported plans or indications to discontinue the one-cent coin in Germany. As part of the Eurozone, Germany uses euro cent coins issued by the European Central Bank and national mints. Some Eurozone countries have debated or implemented rounding rules in cash transactions to reduce the usage of 1- and 2-cent coins, but the coins remain legal tender and in production overall.
In the business world, the decision to discontinue the production of the US one-cent coin is projected to save $56 million annually, particularly in the finance industry. Meanwhile, in the Eurozone, some countries like Finland have already phased out the one-cent coin, while Germany is yet to make a similar move, despite recommending rounding cash payments to the nearest five Euro-cents in some transactions.
