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The United States Treasury has officially confirmed that they will begin phasing out production of the penny.

Some shit you should know before you read: If you’re unaware, the US penny has been in circulation since 1793, making it the nation’s oldest continuously minted coin. Originally made of pure copper, the penny has undergone numerous design changes over the years. Despite its historical significance, the penny has long been scrutinized for its cost inefficiency. According to the US Mint’s 2024 annual report, it now costs approximately 3.69 cents to produce a single penny, nearly four times its face value. Presidents, including Barack Obama and Donald Trump, have publicly supported ending penny production.

What’s going on now: In a notable development, the Treasury confirmed it would officially end the production of the penny once the US Mint exhausts its current inventory of blanks. The final order for penny blanks was placed earlier this month.

The Treasury cited long-standing financial inefficiencies as the driving force behind the move, noting that it causes millions of dollars in losses each year. “Given the cost savings to the taxpayer, this is just another example of our administration cutting waste for the American taxpayer and making the government more efficient for the American people.”

The department estimates that halting production will lead to an immediate annual savings of $56 million in reduced material and operational costs.