Check your pockets. Most likely, you’ve got a few copper-colored discs sitting there, gathering lint and smelling vaguely of metallic tang. They’re basically useless at a vending machine and most self-checkout kiosks spit them back at you like they're offended. This brings up the question that's been hovering over Washington for decades: will the penny be discontinued anytime soon?
Honestly, it’s a weird situation. We are currently spending about three cents to manufacture a single one-cent coin. If that sounds like a failing business model, that's because it is. According to the United States Mint’s 2024 Annual Report, the unit cost to produce and ship a penny was roughly 3.07 cents. We are literally burning money to make money.
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Despite the math being a total disaster, the penny refuses to die. It’s the zombie of the American currency system. While countries like Canada, Australia, and Brazil have already ditched their lowest-denomination coins without the world ending, the U.S. remains stuck in a loop of nostalgia, lobbying, and bureaucratic inertia.
Why the penny keeps surviving despite the cost
If you want to understand why we haven't pulled the plug, you have to look at a company called Jarden Zinc Products. Based in Greeneville, Tennessee, they are the sole provider of the zinc blanks used to make pennies. They spend a lot of money on lobbying. Groups like "Americans for Common Cents" argue that if we get rid of the penny, "rounding" will hurt the poor.
Is that true? Not really.
Most economists, including those who have studied the "rounding tax" theory, suggest it's a wash. If a total is $10.02, it rounds down to $10.00. If it's $10.03, it goes to $10.05. Over a year of grocery trips, the average consumer might lose or gain a few nickels. It’s negligible. Robert Whaples, an economics professor at Wake Forest University, has done extensive research on this and found that the impact on inflation would be basically zero.
But logic doesn't always win in D.C. There’s also the Lincoln factor. Abraham Lincoln is an American icon, and removing him from the most-circulated coin feels, to some, like a slight against his legacy. Of course, he’s also on the five-dollar bill, but nobody mentions that during the heated debates on the House floor.
The logistics of a penny-free America
So, what happens if the Treasury finally decides that will the penny be discontinued is a "yes"?
First, we look North. Canada killed their penny in 2013. They didn't recall them; they just stopped making them. You can still spend a Canadian penny if you find one in your couch, but banks don't hand them out anymore. For cash transactions, they round to the nearest five cents. If you pay with a credit card or Apple Pay, you still pay the exact cent. It's seamless.
In the U.S., the biggest hurdle isn't the rounding—it’s the nickel.
Here is the dirty little secret: the nickel is also a loser. It costs about 11 cents to make a nickel. If we eliminate the penny, the nickel becomes the new "small" coin, and we’d likely need a lot more of them. We’d be replacing a coin that loses two cents with a coin that loses six cents. To truly fix the system, the U.S. Mint would probably have to change the metal composition of all "silver" coins or eliminate the nickel alongside the penny.
The environmental and social cost of small change
Think about the sheer amount of energy required to mine zinc and copper, transport it to the Mint in Philadelphia or Denver, stamp it, and then ship those heavy boxes of coins to banks across the country.
It’s an ecological nightmare for something that people literally throw in the trash.
Walk through any major city airport. Look at the "Give Your Change" bins. They are overflowing with pennies because travelers don't want the weight. Charities actually struggle with this because the labor cost of sorting and rolling pennies sometimes exceeds the value of the coins themselves.
Legislative attempts and the current outlook
There have been multiple bills introduced in Congress over the last decade to pause penny production or change its metal content. The "Coinage Efficiency Act" and similar proposals usually die in committee. Why? Because the penny isn't a "fire" issue. It’s a "simmer" issue. No politician wants to be the person who "raised prices" (even if that's a myth) or "removed Lincoln" right before an election.
Former President Obama once called the penny a "metaphor for the larger problems of government," noting how hard it is to get rid of things that no longer work.
As of early 2026, the U.S. Mint is still churning them out by the billions. They produced over 4 billion pennies last year alone. That is a staggering amount of waste. However, the rise of a "cashless" society is doing the work that Congress won't. As more people move to digital payments, the physical demand for small change is naturally dipping, even if the Mint's production schedules haven't quite caught up to reality.
Real-world impact of keeping the penny:
- Wasted Time: A 2006 study suggested the average person spends 12 hours a year handling pennies. In 2026, that’s even more frustrating.
- Retail Friction: Small businesses have to pay fees to banks to get rolls of coins and spend labor hours counting them.
- Zinc Volatility: The price of zinc is tied to global markets. If zinc prices spike due to geopolitical tension, the cost of a penny could hit 4 or 5 cents overnight.
What you should do with your pennies now
If you’re sitting on a jar of copper, don't wait for the government to act. They are slow. You’re better off taking action yourself.
First, check for "key dates." Most pennies are junk, but a 1943 copper penny (most were steel that year) or certain "double die" errors can be worth thousands. It’s worth a quick scan before you dump them.
Second, use a Coinstar, but don't take the cash. If you take the cash, they hit you with a percentage fee (usually around 11-12%). If you choose a gift card—like Amazon or Starbucks—the fee is usually waived. You get the full value of your "useless" metal.
Third, just spend them. If you’re at a local bodega and the total is $5.02, give them the two cents. They’ll appreciate not having to crack open a new roll of pennies later.
The reality is that will the penny be discontinued is a question of "when," not "if." We are one of the last developed nations clinging to a 1/100th unit of currency that has the purchasing power of a fraction of a cent from the 1950s. Eventually, the sheer cost of production will force the Treasury's hand, or the digital dollar will make the debate irrelevant.
Practical Steps for Your Spare Change
- Empty your jars now: Don't wait for a formal discontinuation announcement, as that might lead to a rush on coin machines.
- Donate to "Penny Drives": Schools and local charities often run these. It’s the most efficient way to get rid of bulk coins while doing some good.
- Digital Round-Ups: Use apps that "round up" your digital purchases to the nearest dollar and invest the "change." It's the modern version of a piggy bank without the heavy metal.
- Support Mint Reform: If you care about government waste, write to your representative about the "Currency Optimization, Innovation, and National Savings (COINS) Act." It’s one of the few pieces of legislation that actually addresses the metal composition and production waste of our currency.
The penny’s days are numbered, even if the government hasn't set the execution date yet. We're effectively using 21st-century tech to pay for a 19th-century habit. It’s time to let it go.