Pennies are being phased out in the United States because producing them costs more than their face value, and changing cash usage patterns have reduced the need for new ones. Key points:

• Costs exceed value: Each 1-cent coin costs about 3.7 cents to produce, so minting new pennies losses taxpayer money each year. This economic math is the primary driver for ending production.

• Policy action: The U.S. Mint stopped producing new pennies after a phased rollout, with the final pennies minted in 2025. The move followed a directive from the administration to halt penny production.

• Cash handling implications: Existing pennies remain legal tender, but banks and businesses are adapting to the absence of new pennies, including rounding considerations for cash transactions and shifts toward other payment methods.

• Historical context: The penny has been minted since 1792, but recent economics and changing consumer behavior have driven the retirement of the coin from production.

If you’d like, I can summarize what this means for everyday transactions (e.g., rounding rules, how to handle jars of pennies, and what banks will still accept) or look up the latest official guidance from the U.S. Mint and Treasury.