Pennies largely stopped being produced because it became economically irrational to mint them. The cost to manufacture a 1-cent coin rose to about 3.7 cents, well above its value, meaning taxpayers were effectively subsidizing each penny in circulation. Simultaneously, the U.S. has seen a strong shift away from cash, with many Americans using cards or digital payments, making new pennies less essential in everyday transactions. As a result, the government announced the end of penny production while keeping the existing pennies legal tender; the plan is to rely on rounding cash transactions to the nearest nickel when pennies run out, though pennies will still circulate and remain redeemable at banks or stores for the foreseeable future.