What's happened
The US Mint produced its last circulating penny on Nov 12, 2025, citing high costs and low value. Retailers face coin shortages, rounding transactions, and operational challenges. The move aims to save $56 million annually but impacts cash transactions nationwide.
What's behind the headline?
The end of penny minting reflects a broader shift towards digital transactions and cost-cutting measures. Retailers are adapting by rounding prices and adjusting cash handling procedures, often without clear federal guidance. This abrupt phase-out exposes vulnerabilities in cash-based commerce, especially for small transactions. While the move will save the government money, it risks operational disruptions and legal complications, as some jurisdictions prohibit rounding down. The decision underscores the declining relevance of small-denomination coins in modern economies, but also highlights the need for clearer regulatory frameworks to manage transition challenges. The long-term impact will likely accelerate the move towards cashless payments, but the immediate effects include logistical hurdles and consumer dissatisfaction.
What the papers say
The Independent reports that the last penny was struck in Philadelphia on Nov 12, 2025, with President Trump citing costs of nearly 4 cents per coin as the reason for ending production. The article notes that many retailers and banks are already experiencing shortages, with some rounding transactions or offering incentives to handle the change. Business Insider UK highlights how retailers like McDonald's and Wendy's are adjusting prices and rounding cash transactions, often without federal guidance, leading to operational challenges. Both sources emphasize the economic rationale behind the move—saving $56 million annually—while also pointing out the practical difficulties faced by businesses and consumers. The coverage from the NY Post and AP News underscores the cultural and logistical implications of ending a 232-year-old tradition, with some retailers expressing concern over the abrupt transition and lack of official instructions. Overall, the coverage illustrates a significant shift in U.S. monetary policy and retail practices, driven by cost considerations and technological evolution.
How we got here
President Trump ordered the cessation of penny production earlier in 2025 due to costs exceeding the coin's face value. Since then, the supply of pennies has dwindled, causing shortages at retailers and banks. The decision aligns with similar moves by other countries like Canada and Sweden, and aims to reduce government expenditure on coinage.
Go deeper
Common question
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Why Are Pennies in Short Supply in the US?
The US penny shortage has become a hot topic as coin production halts and retailers scramble to adapt. Many wonder why pennies are so hard to find right now and what it means for everyday shopping. Below, we explore the reasons behind the shortage, how businesses are coping, and what it could mean for your holiday shopping plans.
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Why Did the US Stop Producing Pennies and What Does It Mean?
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 Are Pennies Disappearing from US Circulation?
The US penny is gradually vanishing from everyday transactions following the decision to stop minting new coins. This shift is causing changes in how cash transactions are handled across the country. Curious about why pennies are disappearing, how retailers are adjusting, and what it means for your shopping experience? Keep reading to find out everything you need to know about the US penny shortage and its impact.
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What Are the Economic and Social Effects of Removing Pennies from Circulation?
The decision to stop minting pennies has sparked widespread questions about its impact on the economy and everyday life. From how rounding affects consumers and businesses to what this means for the future of cash, many are wondering what changes lie ahead. Below, we explore the key questions and provide clear answers about this significant shift in currency policy.
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Why Are Pennies Disappearing in the US?
The US is experiencing a coin shortage as the government stops producing pennies. This change has led to widespread impacts on everyday cash transactions, with retailers and banks having to adapt quickly. Curious about why the penny is being phased out, how it affects your shopping, and what the future holds? Keep reading for answers to these common questions and more about the US penny shortage.
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