Senate Passed Bill to Halt U.S. Penny Production
The move ends the creation of new pennies to save millions in manufacturing costs annually.
Updated on Oct. 4, 2026 in Inflation
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The U.S. Senate has passed legislation to cease the production of pennies, a measure expected to save the U.S. Mint roughly $56 million each year. Existing coins will remain valid for all cash transactions as the country phases out the one-cent piece.
Why it matters
The decision follows reports that the cost to manufacture a single penny has risen to between 3.5 and 4 cents, far exceeding its face value. By halting production, the government aims to eliminate this persistent annual loss.
The U.S. Mint expects to save $56 million annually by ending production of the penny, which currently costs between 3.5 and 4 cents to make. There are 114 billion pennies currently in circulation, all of which remain legal tender.
The players
United States Senate
The upper chamber of the U.S. Congress responsible for passing federal legislation and confirming executive appointments.
Donald Trump
The President of the United States who ordered the production halt and is expected to sign the pending legislation.
United States Mint
The federal agency tasked with producing circulating coinage and protecting national assets.
The details
As the supply of new pennies ends, businesses are encouraged to round cash transaction totals to the nearest nickel. Electronic payment methods are also being promoted to reduce reliance on cash handling. While pennies remain valid for use, the change shifts the operational standard for merchants and consumers alike.
Timeline
November 2025: President Trump ordered the U.S. Mint to stop penny production.
October 2026: The U.S. Senate passed legislation to halt penny production.
Money Landscape
This move marks a departure from the historical precedent established by the U.S. Coinage Act of 1965, which has maintained the penny as a foundational unit of currency. It reflects a broader shift toward electronic payments in a modern economy.
You can continue to use your existing pennies for any cash purchase, as they will remain valid currency. If you encounter stores that have begun rounding to the nearest nickel, consider using electronic payments to avoid price fluctuations on small cash transactions.
The takeaway
The end of penny production is a practical response to rising manufacturing costs that outpace the coin's utility. For now, you can continue to spend your current penny supply as normal and discuss any concerns about rounding at local businesses with your personal financial advisor.
Further reading
For more on how shifts in currency and pricing affect your budget, see our Inflation section.
Source note: This article includes information reported by Moscow-Pullman Daily News.
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