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 last minting and the rationale behind its discontinuation
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 piece persisted for over 150 years longer than the half-penny, leaving only higher value coins like the nickel, dime, quarter, and the infrequently utilized half-dollar and dollar coins in active circulation. Even though its manufacturing has ceased, the penny will continue to be recognized as legal currency, thus maintaining its role in transactions should individuals choose to employ it.
Challenges following the penny’s exit
Although its removal was anticipated, the transition has already introduced complications for retailers and consumers. Many merchants are forced to round cash transactions to the nearest nickel, often adding a cent or two to the total. Others are encouraging customers to supply pennies to maintain transactions. In certain states, however, rounding prices can create legal issues, making the shift more complicated than expected.
Ironically, while discontinuing the penny could save money, the potential need to produce more nickels—which cost more to mint than pennies—may offset these savings. Retailers and government agencies alike are navigating a period of uncertainty. According to Mark Weller, executive director of Americans for Common Cents, “By the time we reach Christmas, the problems will be more pronounced with retailers not having pennies.” Weller points out that countries like Canada, Australia, and Switzerland had structured plans when phasing out low-denomination coins, whereas the United States has issued only a brief announcement, leaving much of the practical adaptation to businesses themselves.
Rounding methods and their consequences
Different businesses are experimenting with rounding strategies. Kwik Trip, a Midwest-based convenience store chain, has chosen to round down cash purchases where pennies are unavailable, aiming to avoid overcharging customers. This approach, however, carries a financial cost. With millions of cash transactions each year, the chain estimates that rounding could cost them several million dollars annually.
On a broader scale, the Federal Reserve Bank of Richmond estimates that rounding transactions to the nearest nickel could collectively cost American consumers about $6 million per year—roughly five cents per household. While this figure is relatively modest, rounding cannot be implemented uniformly nationwide due to differing state regulations. States like Delaware, Connecticut, Michigan, and Oregon, along with cities such as New York, Philadelphia, and Washington, D.C., require exact change in certain transactions. In addition, federal programs such as SNAP mandate precise pricing to ensure fairness for beneficiaries using debit cards. Retailers rounding down cash transactions in these contexts could face legal challenges or penalties.
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 rich past
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 retirement of the penny marks more than just the end of a physical coin—it represents a shift in how Americans interact with money. What was once a practical tool for small purchases has become largely symbolic, embedded in family traditions, historical memory, and American culture. Collectors and enthusiasts are likely to preserve the final minted coins, ensuring that the penny’s legacy endures in some form, even as it exits everyday circulation.
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.
