Discontinuation of Production: One-Cent Coins No Longer to Be Minted in the U.S. - United States Plans to Halt Production of Penny Coins
U.S. to Discontinue One-Cent Coin Production from 2026
Effective early 2026, the U.S. Treasury is set to cease the production of one-cent coins, a practice that spans over 230 years. The decision, supported by both parties, stems from escalating production costs. The expense of creating a single one-cent coin has risen from 1.3 cents in 2012 to 3.69 cents in 2022. This move is projected to save $56 million in annual costs.
The announcement follows an order issued by President Donald Trump in February, instructing Treasury Secretary Steven Mnuchin to end the coin's production. In future transactions, amounts will be rounded to the nearest five-cent value.
The U.S. five-cent coin, known as a "nickel," currently circulates approximately 114 billion one-cent coins. The coin was first minted by the U.S. government in 1793 and has featured President Abraham Lincoln since 1909.
The one-cent coin's discontinuation is a contentious issue in the Eurozone, with nations like Finland de facto phasing it out. In March 2025, the National Cash Forum in Germany proposed rounding cash payments to the nearest five Euro-cent, devaluing two-cent coins, which have no equivalent in the U.S. denomination. However, it's worth noting that no official decisions regarding the discontinuation of the one-cent or two-cent coins have been made for Germany or the Eurozone as a whole.
Established in 2024, the National Cash Forum comprises associations of the banking industry, retail, consumer protection, and vending machine operators. The forum was created by the German Federal Bank with the goal of discussing and proposing solutions to cash-related issues.
The discontinuation of one-cent coin production in the U.S. might lead to changes in the domestic finance industry, as amounts in future transactions will be rounded to the nearest five-cent value. Moreover, the financial industry, particularly banks and retailers, might take note of the rounding strategy in the Eurozone, where nations like Finland have effectively phased out one-cent coins.
