May 22, 2025
U.S. News recently published an article featuring Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing how the U.S. Mint is ending penny production after placing its final order of penny blanks, citing high costs and low utility.
The move, backed by President Trump and expected to save $56 million annually, follows a sharp rise in production costs, nearly 4 cents per penny. While over 100 billion pennies remain in circulation, bipartisan bills introduced in Congress aim to make the decision permanent. Critics warn eliminating the penny could boost demand for even costlier nickels unless pricing systems adjust.
“If we suddenly have to produce a lot of nickels — and we lose more money on producing every nickel — eliminating the penny doesn’t make any sense,” Zagorsky adds.
Advocates are calling for cost-cutting measures in coin production to preserve cash use while modernizing currency policy.
