The Philadelphia Mint holds a significant place in American history as the nation’s first Mint. It was responsible for producing the first U.S. copper pennies. In 1793, the Philadelphia Mint made and delivered 11,178 pennies, marking a pivotal moment in U.S. coinage.
In 2017, to celebrate its 225th anniversary, the Mint struck that year’s pennies with an additional “P” to signify Philadelphia. Today’s pennies, made of 2.5% copper and zinc, cost 3.69 cents each to produce. This is a notable increase from before 1857 when the Mint produced pennies entirely out of copper.
According to the U.S. Mint’s fiscal 2024 report, the production of pennies in the last year resulted in a loss of $85 million. While the penny’s production is winding down, the coin will continue to hold value in the U.S. economy. The Treasury is currently selling a set of uncirculated coins from 2025, which includes a penny, available on its website. Additionally, limited edition collector’s pennies are anticipated to be released in the future.
During fiscal 2024, pennies accounted for 57% of the Treasury’s coin circulation. Eliminating penny production is expected to save the Treasury $56 million annually.
**The Penny Is Going Away in Early 2026: What It Means for You and Your One-Cent Coins**
With the penny’s phase-out, nickels might be next on the chopping block. Nickels currently cost over 13.78 cents each to make, a significant markup over their face value. Bessent has proposed changing the composition of nickels “so that a nickel is worth a nickel.”
Fiscal 2024 marked the 19th consecutive fiscal year that nickels cost more to produce than their actual value. The Washington Examiner has reached out to the Treasury for comment on these developments.
Stay tuned for updates as the U.S. Treasury moves forward with changes to the nation’s coinage system.
https://www.washingtonexaminer.com/policy/finance-and-economy/3884118/scott-bessent-to-oversee-final-circulation-of-penny/