The U.S. Mint has placed its final order for penny blanks and intends to cease production of the one-cent coin once the existing supply is exhausted, a Treasury Department official confirmed on Thursday.
According to the official, who spoke on condition of anonymity to preview the announcement as they were not authorized to discuss the matter publicly, the cessation of penny production is projected to yield an immediate annual savings of $56 million through reduced material costs.
President Donald Trump had previously announced his directive to halt the minting of the 1-cent coin in February.
Supporters of eliminating the penny point to its high production cost, which currently stands at nearly 4 cents per penny according to data from the U.S. Mint, and its limited practical utility in transactions. Conversely, proponents of retaining the penny emphasize its value in charitable fundraising efforts and argue that its production cost remains relatively lower compared to the nickel, which costs approximately 14 cents to mint.
The timeline for the complete cessation of penny production will depend on the depletion of the final order of blanks. This decision marks a significant step in the ongoing debate regarding the future of the penny in American currency.
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