The Treasury Department said Thursday it’s planning to end production of the penny in an effort to phase out one of the country’s oldest currencies.
The U.S. Mint has made its final order of penny blanks and will stop manufacturing the coin, a Treasury official told The Hill.
Congress has sole authority over the discontinuation or elimination of coins. However, the Treasury Department has the power to halt new production.
The penny costs nearly 4 cents to make, according to The Wall Street Journal, which first reported the move. By ending penny production, the Mint projects an annual savings of $56 million in reduced material costs.
Leaders and lawmakers have long questioned the value of the one-cent coin and have introduced legislation seeking to strike it from production.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” President Trump wrote in February on Truth Social.
Colorado Gov. Jared Polis (D) later backed Trump’s suggestion calling it a “great move.”
“As well as saving taxpayers hundreds of millions of dollars, there are major environmental benefits to eliminating the penny,” Polis wrote in a post on X.
Former President Obama has also supported the effort.
Updated at 1:23 p.m. EDT.