U.S. Treasury to end penny production, what you need to know

PALM DESERT, Calif. (KESQ) - A change for your change. The U.S. Treasury Department says it's phasing out production of the penny, and it will soon stop putting new one-cent coins into circulation.

One of the primary reasons for ending production is cost. It currently takes nearly four cents to produce a single penny, due in part to rising metal prices. In 2024 alone, the government lost over $85 million minting roughly 3 billion pennies.

People also aren't using cash as much as other payment options, like credit and debit cards.

Experts say the circulation of new pennies will end early next year. Businesses will need to start rounding up or down to the nearest 5 cents for cash payments. Debit and credit card purchases will still be charged to the exact cent.

This could impact low-income and older Americans, who are more likely to use cash.

Stay with News Channel 3 for more.