United States to Phase Out One-Cent Coins Starting 2026
United States Mints Penny Coins - Americans Plan to Halt Production of Penny Coins
In a move driven by escalating production costs, the United States Treasury Department has announced the termination of one-cent coin production as of this year. From early 2026, these coins will no longer be produced, marking the end of a 230-year chapter in American currency history.
Congress and the administration have endorsed the discontinuation of the tiny zinc-copper coins, primarily due to their increasing production costs. These expenses have risen from 1.3 cents per coin in 2012 to 3.69 cents today, resulting in an estimated annual savings of $56 million.
President Donald Trump instructed Treasury Secretary Steven Mnuchin to cease production in February. Moving forward, cash transactions will be rounded to the nearest five-cent value. Often referred to as "nickels," these coins are currently in circulation to the tune of approximately 114 billion pieces, first issued by the US government in 1793, with President Abraham Lincoln featured since 1909.
The European Union’s smallest coin, the one-cent euro, has also been the subject of controversy in the Eurozone, with some countries like Finland effectively phasing it out. In Germany, while discussions revolving around the small coins are resurfacing, concrete steps towards their discontinuation have not been taken yet.
Context:Several Eurozone nations such as Belgium, Finland, Ireland, Italy, the Netherlands, Slovakia, Estonia, and Lithuania have implemented or are planning to implement mandatory rounding in transactions, effectively reducing the use of one- and two-cent EU coins. However, a complete abolition of these coins would require a decision at the EU level, with no decision made so far. A significant majority of Europeans favor abolishing the one- and two-cent EU coins, but no official plans to halt their production or implement rounding at the EU level have been announced.
In light of the escalating production costs, the United States will cease producing the one-cent coins from 2026, a decision that follows financial considerations and business expenses. Meanwhile, the EU member states, faced with similar issues, have mandated rounding in transactions, gradually reducing the use of their one- and two-cent coins.
