Following over two centuries of circulation, the American penny is slated for discontinuation, concluding a 238-year period in the country’s financial narrative. The last coin is scheduled for production today at the US Mint in Philadelphia, signifying the conclusion of an epoch.
The final minting and reasons for retirement
The last penny will be produced under the supervision of Treasury Secretary Scott Bessent and Treasurer Brandon Beach, following a directive from President Donald Trump earlier this year to halt production. The decision stems from the rising cost of manufacturing the coin—nearly four cents per penny—making it more expensive to produce than its actual value. Once an essential part of everyday life, used for small purchases like gumballs, parking meters, or tolls, the penny has gradually become less relevant, often accumulating in coin jars, drawers, or “leave a penny/take a penny” trays.
The one-cent coin outlasted the half-penny by more than a century and a half, leaving only larger denominations such as the nickel, dime, quarter, and the seldom-used half-dollar and dollar coins in active circulation. Despite the cessation of its production, the penny will remain legal tender, allowing it to retain a place in commerce if people still wish to use it.
Obstacles after the penny’s removal
Despite its expected discontinuation, this change has already presented difficulties for both vendors and shoppers. Numerous businesses are now compelled to adjust cash payments to the closest five-cent increment, frequently increasing the total by one or two cents. Other establishments are prompting patrons to provide one-cent coins to facilitate transactions. Nevertheless, in some jurisdictions, adjusting prices in this manner could lead to legal complications, rendering the transition more intricate than initially foreseen.
Ironically, although eliminating the penny might lead to financial savings, the potential necessity of manufacturing a greater quantity of nickels—which are more expensive to produce than pennies—could negate these benefits. Both businesses and governmental bodies are currently navigating a period of instability. Mark Weller, who serves as the executive director of Americans for Common Cents, states, “By the time we reach Christmas, the problems will be more pronounced with retailers not having pennies.” Weller highlights that nations such as Canada, Australia, and Switzerland implemented well-defined strategies when removing low-value coinage, whereas the United States has merely issued a concise declaration, leaving much of the practical adjustments to be handled by enterprises themselves.
Rounding practices and their implications
Different companies are exploring various rounding methods. Kwik Trip, a chain of convenience stores located in the Midwest, has opted to round down cash transactions when pennies are not available, to prevent customers from being overcharged. This method, however, incurs a financial burden. Given millions of cash transactions annually, the chain projects that this rounding policy could result in losses of several million dollars per year.
On a larger scale, the Federal Reserve Bank of Richmond projects that rounding financial exchanges to the nearest five cents could impose an annual burden of approximately $6 million on American consumers—equating to roughly five cents per household. Although this amount is relatively small, universal implementation of rounding across the nation is not feasible due to varied state laws. Jurisdictions including Delaware, Connecticut, Michigan, and Oregon, alongside municipalities like New York, Philadelphia, and Washington, D.C., mandate exact change for specific types of transactions. Furthermore, federal initiatives such as SNAP necessitate precise pricing to guarantee equitable treatment for recipients utilizing debit cards. Businesses that round down cash transactions in these situations might encounter legal repercussions or fines.
Industry associations, such as the National Association of Convenience Stores (NACS), have pressed Congress to pass laws that simplify and enable rounding procedures. Jeff Lenard, a representative for NACS, stressed, “We urgently require legislation that permits rounding, enabling retailers to provide change to these patrons.” Until these regulations are put into effect, the elimination of the penny creates both operational and legal ambiguities for numerous enterprises.
A coin with a storied history
The penny has a rich legacy, first minted in 1787, six years before the establishment of the United States Mint. Benjamin Franklin is widely credited with designing the Fugio cent, the nation’s first penny. Its current design, featuring Abraham Lincoln, debuted in 1909 to commemorate the centennial of Lincoln’s birth, becoming the first U.S. coin to depict a president.
Over time, however, the penny has seen a steady decline in practical use and cultural significance. The Treasury Department estimates that approximately 114 billion pennies remain in circulation, yet many are underutilized, tucked away in jars or collected as keepsakes rather than used in transactions. Public reaction to the coin’s discontinuation has been muted, reflecting its diminished role in everyday commerce.
Despite its fading relevance, the penny carries sentimental value for many Americans. Joe Ditler, a 74-year-old writer from Colorado, recalls using pennies for amusement park machines or flattening them on railroad tracks as a child. Now, he primarily uses them sparingly for cash transactions or adds them to tip jars. He reflects, “They bring back memories that have stayed with me all my life. The penny has had a wonderful life. But it’s probably time for it to go away.”
Legacy and cultural impact
The discontinuation of the penny signifies more than merely the cessation of a tangible coin; it indicates a transformation in the way Americans engage with currency. What was formerly a functional instrument for minor transactions has largely evolved into a symbolic item, woven into familial customs, historical recollections, and the broader American ethos. It is anticipated that collectors and aficionados will safeguard the last produced coins, thereby guaranteeing that the penny’s heritage persists in some capacity, even as it departs from routine use.
While challenges remain for businesses and consumers adapting to its absence, the phase-out is also a reflection of broader economic realities. Rising production costs, changing consumer habits, and the prevalence of digital payments have collectively diminished the necessity of the one-cent coin. As society transitions toward a more digital and rounded approach to cash transactions, the penny’s symbolic role may outlive its practical utility.
The American penny’s departure closes a remarkable chapter in the nation’s monetary history. Its 238-year journey, from Benjamin Franklin’s Fugio cent to the familiar Lincoln penny, highlights both the evolution of U.S. currency and the changing ways Americans interact with money. While its practical use may end, the memory of the penny—its cultural and historical significance—will remain a lasting testament to a bygone era.