United States to Cease Production of One-Cent Coins from 2026 due to Rising Production Costs
U.S. Halts Production of Penny Coins - Coin Manufacture: Cessation of One Cent Coin Production by the U.S.
The U.S. Treasury Department has announced its final order for one-cent coin blanks this month, signaling the end of the production of the smallest U.S. coin, effective from early 2026. The decision primarily stems from escalating production costs.
From 1.3 cents per coin in 2012, the production cost has surged to 3.69 cents today, compelling both political parties to support the discontinuation of the zinc and copper coin. The move is predicted to save $56 million annually.
President Donald Trump issued instructions to Treasury Secretary Steven Mnuchin in February to halt the production of the coin.Future cash transactions will round amounts to the nearest five-cent value. Currently, approximately 114 billion one-cent coins are circulating, first issued in 1793 and featuring President Abraham Lincoln since 1909.
Paralleling this development in the U.S., the one-cent coin is also a subject of controversy in the Eurozone, with some countries like Finland effectively phasing it out. The National Cash Forum, established in 2024, recently recommended rounding cash payments in Germany to the nearest five Euro-cent, an undertaking that would also render two-cent coins obsolete.
The Enrichment Data indicates that while Germany and the European Union are not currently phasing out one-cent (1-cent euro) coins as the U.S. is with its penny, ongoing discussions and debates about these small denomination coins arise from rising production costs and diminished purchasing power. The example set by Lithuania's decision to largely discontinue 1- and 2-cent coins from May 2025 suggests that the future of these coins remains uncertain.
The announcement to cease the production of U.S. one-cent coins from 2026, due to escalating costs, is a significant move in both finance and politics, as it will save $56 million annually and potentially change business practices involving cash transactions. Concurrently in the Eurozone, countries like Germany are facing similar debates about the continued use of one-cent coins, with discussions revolving around rising production costs and diminished purchasing power.
