Change Is Coming to the Penny; Oregon Retailers Adjust
U.S. Mint ends production of the penny after 232 years as local stores adopt new rounding policies
The United States Mint has officially ended production of the circulating one-cent coin, marking the close of a 232-year chapter in American currency. The ceremonial final strike took place Wednesday at the Mint’s Philadelphia facility, where U.S. Treasurer Brandon Beach pressed the last penny destined for circulation.
“Today the Mint celebrates 232 years of penny manufacturing,” said Kristie McNally, Acting Mint Director. “While general production concludes today, the penny’s legacy lives on. As its usage in commerce continues to evolve, its significance in America’s story will endure.”
Authorized by the Coinage Act of 1792, the penny has been a staple of American life since the nation’s earliest days. But rising production costs—now 3.69 cents per coin—combined with changing consumer behavior prompted federal officials to end its manufacturing. More than 300 billion pennies already circulating far exceed what the economy requires.
The penny will remain legal tender, and the Mint will continue producing limited collector editions. Retailers may continue to price items to the cent.
Local impact already visible in Oregon
Here in Southern Oregon, the effects of the penny’s phase-out are becoming real for businesses.
The Black Bird Shopping Center in Medford recently announced it can no longer obtain pennies from its bank and has implemented a new rounding policy for cash transactions. Under the system:
Totals ending in 1 or 2 cents are rounded down
Totals ending in 3 or 4 cents are rounded up
The policy applies only to cash and is designed to help the retailer adapt to shrinking penny availability.
Black Bird says it appreciates customer understanding as it transitions alongside national changes.
What happens next?
According to the U.S. Mint’s official FAQ, consumers can expect several clarifications as the transition moves forward.
Why is circulating penny production being suspended?
The Secretary of the Treasury determined that penny production is no longer necessary to meet the needs of the United States. The decision was influenced by rising costs, which have increased from 1.42 cents to 3.69 cents per penny.
Can pennies still be used in stores?
Yes. The penny remains legal tender and may continue to be used for retail transactions.
Why wasn’t this done sooner?
Under federal law, production could only be halted once a Secretary of the Treasury determined the penny was no longer needed. No previous Secretary had made that determination.
How much money will suspending penny production save?
The Mint estimates an annual savings of approximately $56 million.