Short answer: The U.S. Treasury plans to stop minting new pennies for circulation in early 2026. After that point, penny production will cease, though existing pennies will remain legal tender and continue to circulate. Context and what to expect

• Why this is happening: Rising production costs exceed the value of the coin, making pennies economically inefficient to produce. The Treasury and Mint have highlighted the cost of zinc and copper relative to a one-cent coin as the key driver. This aligns with ongoing discussions about the role of pennies in a largely cashless economy. [Treasury/Mint statements and coverage] [web results referencing the official announcements and analyses].
• What changes for everyday transactions: Some businesses may round prices to the nearest nickel, though the transition details and timing can vary by retailer and by state. Public guidance has emphasized that prices may be rounded in the absence of pennies, while pennies will still be legal tender. [media reports and analyses] [web results].
• Timeline highlights:
  • Final orders for penny blanks were placed in 2025, with production expected to wind down as blanks run out.
  • The Mint’s production would cease once its current inventory is exhausted, which is anticipated in early 2026. [official announcements and early 2026 projections] [web results].
• Scope and reminders:
  • This change affects new penny production; it does not remove pennies from circulation or their status as legal tender.
  • Other countries have phased out their lowest-denomination coins for similar cost and efficiency reasons, though timelines and policies differ by country. [comparative notes] [web results].

If you’d like, I can summarize the latest official statements and key points from reputable outlets in a quick timeline or explain how this could affect cash handling or pricing practices for small businesses.