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US Mint Announces Final Order of Penny Blanks, with Production set to End
NEW YORK — The looming "demise" of the US penny has brought scrutiny to the coin's own price tag, with the cost of manufacturing and distributing each penny amounting to nearly 4 cents, quadruple its monetary value.
Recent news has the U.S. Mint ceasing penny production after its final order of penny blanks this week. The move comes months after President Donald Trump urged his administration to halt penny manufacturing. This decision signals the end of new 1-cent coins once the existing stock is depleted.
Production costs for coins fluctuate due to differences in raw materials, complexity of designs, labor required, and other factors. Many of these expenses have risen significantly, causing a strain not only on the penny but on other coins as well, such as the nickel.
Here's a breakdown of the U.S. Mint's production costs for its latest fiscal year (2024):
Pennies
Each penny costs nearly 4 cents ($0.0369) for the U.S. Mint to mint and distribute. Over 3.17 billion pennies were circulated during the 2024 fiscal year, a decrease from the previous year's 4.14 billion. The Mint's "unit cost" for pennies has risen by 20.2% since the 2023 report, when a penny cost a little over 3 cents.
Nickels
The cost of each nickel is nearly 14 cents ($0.1378) to mint and distribute, which is almost triple the five-cent coin's value. The cost jump for nickels has been consistent for 19 consecutive years, according to the Mint's latest annual report. During the 2024 fiscal year, the Mint shipped 202 million nickels, a significant decrease from the 1.42 billion shipped the previous year.
Dimes
Each dime costs nearly 6 cents ($0.0576) to mint and distribute, nearly doubling the 10-cent coin's value. The unit cost for dimes increased by 8.7% over the last year. The Mint shipped 840 million dimes during the 2024 fiscal year, down from nearly 2.67 billion the year beforehand.
Quarters
The quarter costs nearly 15 cents ($0.1468) to mint and distribute, more than half of the 25-cent coin's value. The unit cost for quarters has increased by 26.2% since the Mint's 2023 report, when the quarter cost around 12 cents. Over 1.6 billion quarters were shipped during the 2024 fiscal year, down from about 2.27 billion the year prior.
Half-dollars
Producing and distributing a half-dollar costs nearly 34 cents ($0.3397), nearly two-thirds of the coin's face value. The cost has increased more than 30% since the 2023 fiscal year, when a half-dollar coin cost just under 26 cents. The Mint shipped 52 million half-dollar coins during its 2024 fiscal year, up from 18 million coins shipped in the previous year.
Cash and Paper Money
It's worth noting that physical currency, not just coins, has varied production costs. According to the Federal Reserve, the production costs for U.S. paper notes are as follows:
- $1 and $2 bills: 3.2 cents each
- $5 bills: 5.3 cents each
- $10 bills: 5.5 cents each
- $20 bills: 6 cents each
- $50 bills: 5.6 cents each
- $100 bills: 9.4 cents each
The ongoing debate about the US nickel, particularly the inconsistency between its manufacturing and distribution costs and its face value, remains active as of 2025[2]. The U.S. Treasury has announced that penny production will cease in 2026, with the coin remaining legal tender but no longer being minted[2]. Given the continuing concern about the penny's high production cost relative to its potential abolition, it is likely that discussions regarding the nickel's future will become increasingly heated[2][3].
Sources:1. United States Mint. (2025). Annual Report to Congress (Latest). Washington, DC: U.S. Mint.2. Fehr, C. (2025, May 7). The End of the Penny and the Uncertain Future of the Nickel. The New York Times.3. Stettner, K. (2025, May 5). US Mint: Here Are the Production Costs of American Coins for 2024. Forbes.
- Amidst the growing debate about the US nickel and the imminent end of penny production, various sectors of the economy, including the finance industry and business, are closely watching the government's decision to determine its potential impact on the overall economy and industry profitability.
- With the U.S. Mint's announcement of ceasing penny production, numerous players in the industry, such as coin recycling operations and vending machine manufacturers, may face significant changes in their respective businesses, as the demand for 1-cent coins diminishes over time.
