PHILADELPHIA (AP) — Back in 1793, a penny could get you a biscuit, a candle or a piece of candy. Today, many sit in drawers or glass jars, often neglected or collected as keepsakes. However, their time is running out.
The U.S. Mint is set to strike its last circulating penny on Wednesday after President Donald Trump canceled the 1-cent coin due to its production cost surpassing its face value.
As minting costs have soared to nearly 4 cents per penny, the president cited the practice as wasteful in an online statement earlier this year. The Mint has been producing pennies in Philadelphia, the nation’s birthplace, since 1793, and billions are still in circulation, yet they have become increasingly unnecessary in modern transactions.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump stated.
Nostalgia for the penny persists, with many considering them lucky or fun to collect. However, retailers have voiced concerns as production dwindles, citing confusion over handling transactions without pennies in the short term.
Some businesses have taken creative measures to cope with the phase-out; offering free drinks or incentives for customers who bring exact change, or opting to round prices to alleviate discrepancies.
“We have been advocating abolition of the penny for 30 years. But this is not the way we wanted it to go,” remarked Jeff Lenard of the National Association of Convenience Stores.
While some believe the elimination of the penny may streamline transactions, banks have begun rationing their supplies amidst what appears to be an overwhelming amount of these coins in circulation. Historically, about half of the coins minted in Philadelphia and Denver over the last century have been pennies.
U.S. Treasury Secretary Scott Bessent and Treasurer Brandon Beach are expected to attend the final production run on Wednesday. The Treasury estimates it will save approximately $56 million each year by discontinuing the penny's production.
Despite this, other coins continue to overshadow the penny in terms of cost-effectiveness. Nickels, for instance, require nearly 14 cents to produce, while dimes cost less than 6 cents, and quarters nearly 15 cents.
