Treasury Department Halts Iconic One-Cent Coin Amid Rising Costs and Policy Shift


November 12, 2025

PHILADELPHIA — In a ceremonial yet somber moment at the historic U.S. Mint here, Treasury officials pressed the final batch of Lincoln pennies on Wednesday, marking the end of an era for the humble one-cent coin that has jingled in American pockets since 1793.

The decision to cease production comes six months after the Trump administration announced plans to phase out the penny, citing skyrocketing manufacturing costs that have rendered the coin a financial drain on taxpayers. According to the latest U.S. Mint Annual Report, each penny now costs approximately 3.69 cents to produce — more than triple its face value and a nearly 20% increase from the previous fiscal year. Over the past decade alone, the Mint has lost billions minting these copper-plated zinc discs, fueling long-standing debates among economists, numismatists, and policymakers about the coin's obsolescence in a digital age.

U.S. Treasurer Brandon Beach presided over the final striking, wielding a hydraulic press to imprint a special "omega" symbol — evoking finality — on a limited run of collector's edition pennies that will bypass general circulation. "This isn't just the end of a coin; it's the dawn of a more efficient economy," Beach declared in a statement released by the Treasury Department. "By eliminating the penny, we're saving American families and businesses hundreds of millions annually, redirecting resources to where they matter most."

The ceremony, attended by a mix of dignitaries, historians, and coin enthusiasts, unfolded under the Mint's vaulted ceilings, where the air hummed with the faint echo of presses that have churned out over 300 billion pennies in the last century. For the uninitiated, the Philadelphia Mint — the nation's first — has been the primary site for penny production since Abraham Lincoln's profile first graced the obverse in 1909. The reverse, featuring the Union Shield since 2010, symbolized resilience; now, it joins a lineage of discontinued U.S. coins like the half-cent and two-cent pieces.

The phaseout has not been without controversy. Retailers, already grappling with the logistics of rounding transactions to the nearest nickel, expressed concerns over potential price hikes and consumer confusion. Advocacy groups like Americans for Common Cents decried the move as "penny-wise and pound-foolish," arguing that eliminating the coin could erode purchasing power for low-income households who rely on exact change. On the flip side, supporters point to international precedents: Canada ditched its penny in 2013, and countries like Australia and New Zealand followed suit years earlier, with minimal disruption.

In a nod to collectors, the Mint announced plans to auction off the final pennies — including a rumored set of gold-plated variants struck for high bidders — with proceeds benefiting numismatic education programs. Early estimates suggest these rarities could fetch thousands at auction, joining the ranks of iconic U.S. coinage like the 1909-S VDB penny, which has sold for over $100,000.

As the last clink of metal on metal faded, Mint Director Ventris Gibson reflected on the penny's cultural footprint. "From 'a penny for your thoughts' to Lincoln's memorial on our wallets, this coin has been woven into the fabric of American life," she said. "But progress demands adaptation. The penny served us well; now it's time to let it rest."

With production halted, the U.S. will continue circulating existing pennies until they naturally wear out — a process expected to take years. In the interim, businesses are preparing for a cashless-friendly future, where apps and cards increasingly supplant coins. For now, though, Americans might find themselves holding onto that final Lincoln a little longer, a shiny relic of simpler transactions.