Each penny costs nearly four cents to produce, so the move is expected to result in immediate savings of $56 million a year. A Treasury spokeswoman confirmed the decision, which was first reported by the Wall Street Journal.
Pennies will remain legal tender, which is fortunate since more than a billion dollar's worth are in circulation. Most are rarely used, however, instead gathering dust in dresser-top coffee cans and forgotten pants pockets.
I wonder how long they will keep "legal tender" status. I feel this will get changed in the future.
Rep. John Rose, R-Tenn., suggested during a hearing this month that phasing out the penny could increase demand for nickels. Minting nickels is also a money-loser for the government, since the five-cent coins cost about 14 cents each.
Treasury Secretary Scott Bessent told lawmakers that the administration believes it can break even on nickel production by changing the composition of the coins.
Of course you "Can" save money by putting less valuable material in the coin but it is a great way to show to the public the money is worth less.
"I will point out that the dime is very profitable," the secretary added.