WASHINGTON–The Treasury Department has placed its last order for blank pennies and plans to stop minting the one-cent coins as soon as that supply is exhausted. 

According to the government, the penny costs nearly four cents to produce. Stopping production of the penny will save the government $56 million a year. 

Pennies will remain legal tender, which is fortunate since more than a billion dollar’s worth are in circulation, the Wall Street Journal noted.

“Most are rarely used, however, instead gathering dust in dresser-top coffee cans and forgotten in pants pockets,” the report added.

Round Up, Down

“The phase-out may require stores to round prices up or down to the nearest nickel, although the growing popularity of non-cash payments makes that less of a headache. Fewer than one in five payments are made with cash,” according to the Federal Reserve Bank of Boston.”

The U.S. began minting pennies in 1793, the year after Congress authorized the Mint. President Abraham Lincoln was the first president to be featured on a coin, starting in 1909, the centennial of his birth. 

Rep. John Rose (R-RN) suggested during a hearing 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, the Journal reported.

Turning on the Dime

However, Treasury Secretary Scott Bessent told lawmakers that the administration believes it can break even on nickel production by changing the composition of the coins. 

“I will point out that the dime is very profitable,” the secretary added.

Canada, New Zealand and Australia have also eliminated their one-cent coins.