Treasury Department set to phase out the penny

[ad_1] The Treasury Division stated it plans to cease manufacturing the penny, calling time on one of many first cash minted by the U.S. authorities.

The federal company positioned its last order for penny blanks this month, with the US Mint slated to finish manufacturing of the penny when that runs out, a Treasury official advised CBS MoneyWatch. The blanks — flat, metallic discs that the Mint turns into cash — will run out in early 2026, in line with the Wall Road Journal, which first reported the information.

The penny, which dates from the early days of the U.S. Mint after its institution in 1792, now prices extra to fabricate than the coin is value. The 1-cent coin value about 3.7 cents to fabricate and distribute in 2024, in line with the U.S. Mint's 2024 annual report.

Ending manufacturing of the penny will save the Mint about $56 million in annual financial savings, the Treasury stated on Thursday.

Regardless of their coppery look, pennies are principally fabricated from zinc, with their distinctive look coming from a copper overlay. Zinc's value per metric ton is greater than double what it was in 2000, in line with knowledge from the Federal Reserve Financial institution of St. Louis.

The Trump administration had not too long ago signaled it was out to cease making the 1-cent coin, with Elon Musk's Division of Authorities Effectivity saying in January that the penny was too pricey to provide. In February, President Trump stated he had directed the Treasury to cease minting new pennies, citing the rising manufacturing prices.

"For a lot too lengthy the US has minted pennies which accurately value us greater than 2 cents. That is so wasteful!" Mr. Trump wrote in a February submit on his Reality Social website. "I've instructed my Secretary of the US Treasury to cease producing new pennies."

Earlier presidential administrations have additionally scrutinized the penny because of the rising value of manufacturing, with former Treasury Secretary Jacob Lew pushing the concept in 2015.

Extra from CBS Information

Aimee Picchi

Aimee Picchi is the affiliate managing editor for CBS MoneyWatch, the place she covers enterprise and private finance. She beforehand labored at Bloomberg Information and has written for nationwide information retailers together with USA At the moment and Shopper Stories.