You may have heard that the U.S. has stopped making pennies. Here’s what’s really happening and what it means for you. 

Q: Has the government stopped making pennies? 

A: Yes. The U.S. Mint suspended production of new pennies in late 2025 to reduce costs. Each penny costed more than three cents to make, so ending production helps cut government spending.
What does this mean for you? Pennies are still legal tender, and there are billions in circulation, so they’re not disappearing overnight. 

Q: Is there a penny shortage? 

A: Not exactly. There are plenty of pennies out there, but circulation has slowed because people tend to stash coins in jars or drawers. With no new pennies being minted, banks and retailers rely on recycled coins, which can cause local supply issues. 

Q: What are coin terminals, and why do they matter? 

A: Coin terminals are facilities where banks deposit excess coins and withdraw coins they need. Recently, some terminals stopped handling pennies, making it harder for banks to access them in certain areas. This adds to the circulation challenge. 

Q: What happens if my bank or store runs out of pennies? 

A: In areas with limited penny availability, cash transactions may be rounded to the nearest five cents, like what Canada and Australia do. Electronic payments aren’t affected, and banks will communicate any changes clearly. 

Q: Can I still use my pennies? 

A: Absolutely. Pennies remain legal tender. You can spend them or deposit them at your bank. In fact, bringing in coins from home helps improve circulation. 

Q: What is the banking industry doing about this? 

Banks are: 

• Monitoring coin circulation closely. 

• Working with the Federal Reserve and Treasury to manage supply. 

• Supporting customers through operational adjustments. 

• Advocating for policy changes to keep coin access smooth. 

Q: Will this affect my banking experience? 

A: Possibly, banks are committed to minimizing disruption. You may notice rounding in cash transactions or signage encouraging electronic payments. We’ll continue to accept pennies if they remain in circulation. 

Q: Will the penny be eliminated completely? 

A: That decision rests with Congress and the President. For now, production has stopped, but pennies are still part of everyday transactions. 

Tip: If you have jars of pennies at home, now is a great time to bring them in! 

How We’re Here to Help 

If you have questions about rounding, coin deposits, or local availability, contact our branch team or customer care. We’ll: 

• Explain how rounding works where applicable. 

• Help you deposit coins (including large quantities). 

• Offer tips for digital payment options that avoid rounding altogether. 

We’re committed to keeping your experience smooth during this transition. 

Sources & Further Reading 

• U.S. Mint media kit and FAQs on penny production suspension: usmint.gov 

• Congressional Research Service insight on policy and costs: congress.gov 

• Federal Reserve coin terminal guidance and FAQs: frbservices.org