Pennies are going away because it costs more to produce them than they are worth, and the savings from stopping production are substantial. Key points:

• Cost of production: Each penny costs about 4 cents to manufacture, so the government loses money on every coin minted.

• Economic rationale: Stopping production reduces annual minting costs by tens of millions of dollars (roughly $56 million per year), freeing government resources for other priorities.

• Legal tender status unchanged: The penny remains legal tender and can still be used in transactions, but no new pennies will be minted.

• Impact on price rounding: Retailers anticipate eventual rounding of prices to the nearest nickel when pennies are scarce, though the transition will be gradual given the large stock of existing pennies.

• Public and retail adaptation: Stores and consumers will adjust to the changing cash landscape, with some pricing and change-handling changes likely over time.

If you’d like, I can pull the latest official statements from the U.S. Mint or Treasury and summarize how this change is being implemented step by step.