The US Treasury Department has begun phasing out the production of the penny, the nation’s smallest denomination coin. The move, first reported by The Wall Street Journal on May 22, follows an order from President Donald Trump aimed at cutting costs tied to outdated government spending.
Pennies, composed of 97.5% zinc and 2.5% copper plating, now cost about 3.69 cents each to produce—nearly four times their face value. A decade ago, that figure was just 1.3 cents. Rising metal prices and manufacturing costs have driven the spike, Treasury statistics show.
The US Mint will continue to produce the coin only until its supply of metal blanks runs out. Officials estimate this shift will save taxpayers US$56 million annually in reduced material costs. Further savings are expected once minting facilities are converted for other uses.
As one chapter of US currency comes to a close, it’s a fitting moment to look back at how American money has developed over time. The history of American currency is a fascinating one, evolving from early colonial coinage to the greenbacks and bills we use today. Curious what the end of the penny says about the money that made America? Click through and discover more.