The US has halted penny production following a decision by President Trump, leading to widespread coin shortages across the country. This change is affecting everyday transactions, small businesses, and consumers alike. Curious about why the penny was discontinued, how it impacts your daily life, and what the future holds? Keep reading for answers to these pressing questions and more about the ongoing shift in US currency.
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Why has the US stopped making pennies?
The US stopped minting pennies in 2025 because the cost to produce each coin exceeds its face value. The decision was made to save money, as producing a penny now costs more than one cent. This move aims to reduce government expenses and streamline currency circulation.
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How is the penny shortage affecting everyday transactions?
With fewer pennies in circulation, retailers and banks are rounding transactions to the nearest nickel or dime. This has led to some customer dissatisfaction and changes in how small purchases are handled, as the country adjusts to the reduced supply of small change.
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What are the long-term impacts of phasing out pennies?
Over time, removing pennies could lead to more efficient cash handling and cost savings for the government. However, it may also change how consumers and businesses handle small transactions, potentially leading to more cash rounding and new ways of exchanging change.
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How are businesses and consumers adapting to the coin shortage?
Many businesses are hosting penny exchange events, like Giant Eagle’s Penny Exchange Day, where customers trade pennies for gift cards or other incentives. Retailers are also rounding prices and encouraging digital payments to cope with the shortage.
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Will the US start minting pennies again?
It’s uncertain when or if the US will resume penny production. Currently, the focus is on managing the existing coin shortage and adjusting to a future without pennies, but federal officials have not announced plans to restart minting.
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What should I do if I have a lot of pennies at home?
If you have accumulated pennies, consider exchanging them at local banks or participating in community penny exchange events. Some stores may also accept pennies for small purchases or trade them for digital credits or gift cards.