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ABA: The American Bankers Association
Banking Topic

Penny Phaseout

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Payments

In February 2025, President Trump directed the U.S. Treasury to stop producing pennies as part of a broader effort to cut unnecessary government spending. Each penny costs nearly four cents to produce and distribute, making it economically inefficient. While minting has ended, existing pennies remain legal tender, and banks will continue to accept and process them. As availability declines, some banks and merchants may run low or out of pennies, potentially affecting cash transactions that rely on exact change. This page provides resources to help your bank track trends, manage customer expectations, and respond to the operational impacts of the penny’s retirement.

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Penny Work Group

This group meets weekly to discuss penny circulation and implications of the production halt to banks.

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