On Nov. 12, 2025, the last penny was minted at the U.S. Mint in Philadelphia. The U.S. Secretary of the Treasury exercised authority under 31 United States Code (USC), Section 5111(a) and §5112 to suspend production. The decision to cease penny production was largely rooted in cost. According to the U.S. Mint, the total production cost of the penny has risen from 1.42 cents to 3.69 cents per penny over the past 10 years. The U.S. Mint predicts the discontinuation of the penny will result in annual savings of $56 million. New pennies will no longer be manufactured, but according to the U.S. Department of the Treasury (Treasury), there are around 114 billion existing pennies in circulation. While the penny remains legal tender and may still be used for transactions, it is anticipated that the stoppage in production will reduce and eventually eliminate pennies in circulation. Federal Considerations The Federal Reserve is responsible for distributing coins to banks and credit unions. The Federal Reserve will still accept deposits of pennies from banks and credit unions; however, it indicates that the coin distribution locations accepting deposits will vary over time. Coin distribution locations will cease fulfilling penny orders when inventory is depleted.1 This will impact cash transactions, and it will be necessary to “round” such transactions in the absence of penny availability. Currently, there are no federal “rounding” guidelines. Pennies No Longer in Production Impact Cash Transactions and Sales Taxes Lance Jacobs, Managing Director, and Natalie Straus, CRCM, Director Forvis Mazars 22 NEBRASKA BANKER
RkJQdWJsaXNoZXIy MTg3NDExNQ==