One-cent Coins Discontinuation: United States Halts Production of Penny Minting - Stopping Production of Penny: The United States to Halt Manufacture of One-Cent Coins
The United States will discontinue the production of its one-cent coins—a move expected to save the Treasury Department approximately $56 million annually—almost two and a half centuries after the coin's introduction. The final order for one-cent blanks was placed this month, signifying a likely cessation of new one-cent coin production from early 2026.
The decision to phase out this small-denomination coin, primarily made of zinc and copper, has been supported by both political parties, given escalating production costs that have risen from 1.3 cents per coin a decade ago to 3.69 cents today. In future cash transactions, amounts will be rounded to the nearest five-cent value.
The coin, colloquially known as the "nickel" in the U.S., currently circulates at roughly 114 billion units. It was first issued by the U.S. government in 1793 and has featured Abraham Lincoln since 1909.
In the European Union, the one-cent coin's fate has also been a subject of contention, particularly in the Eurozone. Notably, Finland has effectively phased out its use, and in March 2025, Germany's National Cash Forum recommended rounding cash payments to the nearest five Euro-cent, possibly rendering its two-cent equivalent obsolete, as it does not have a counterpart in U.S. denominations.
However, member states do not have the authority to independently decide on Euro coin minting or discontinuation, as such decisions are made at the European Union level. Ongoing discussions within the EU have centered on the diminished purchasing power and higher production costs of its one- and two-cent coins compared to their face value. As of May 2025, no announcement regarding the cessation of these coin productions has been made.
Unlike the U.S., the discontinuation of the penny in the United States does not directly impact Europe or Germany, as individual member states do not unilaterally determine the minting or phasing out of euro-denominated coins.
- The discontinuation of the one-cent coin in the United States, a move driven by escalating production costs, is supported by both political parties, signifying a shift in the nation's finance, business, and potentially general-news landscape.
- In parallel discussions in the European Union, member states like Germany are contemplating the rounding of cash payments to the nearest five Euro-cent, influencing the future of their two-cent coin, a practice with no direct counterpart in U.S. denominations, highlighting the intertwining nature of finance, business, politics, and general-news in both regions.
