• The U.S. Treasury plans to stop penny production by early 2026 after placing its final order for blanks.
• Each penny now costs approximately 3.7 cents to produce, leading to significant losses for the government.
• The elimination of the penny is expected to save around $56 million annually.
• Pennies will still be legal tender after production ends, but prices may be rounded to the nearest nickel.

The U.S. Treasury Department has confirmed plans to end production of the penny, one of the country's oldest coins, by early 2026. The decision follows a directive from President Donald Trump, who termed the minting of pennies "wasteful" due to their increasing production costs, which now stand at nearly 4 cents per coin. With approximately 114 billion pennies in circulation, surrounding debates over their utility have surfaced as the Mint estimates that stopping production will yield annual savings of $56 million in material costs, according to CBS News and Los Angeles Times.

This marks the first significant change to U.S. currency in recent times, following similar moves by countries like Canada and Australia. The U.S. Mint's report indicated that while the cost of producing a penny has skyrocketed from 1.3 cents a decade ago, producing other coins such as the nickel is even more costly—about 14 cents, as noted by Reuters and ABC News.

Supporters of the penny argue that it serves a significant role in charitable donations and the economy, pointing out that its elimination could lead to increased reliance on nickels. Critics, however, emphasize that the coin has become a financial burden due to its production costs and limited practical use, according to reports from The New York Times and HuffPost.

While pennies will cease production, they will still be legal tender and accepted in transactions, although businesses may need to start rounding cash transactions to the nearest five cents as the coin gradually disappears from circulation. The Treasury has indicated there is no current plan to recall existing pennies, as detailed by Newsweek and BBC.