Federal
Policy
Operations
Penny Production Cessation FAQs
U.S. Department of the Treasury
Published: December 23, 2025
Source Overview
The U.S. Department of the Treasury published official FAQs outlining the rationale, authority, and operational expectations surrounding the cessation of U.S. penny production.
Key Takeaways
- Penny production costs significantly exceed face value
- Treasury confirms authority to cease production
- Pennies remain legal tender indefinitely
- Symmetrical rounding for cash transactions is recommended
- Non-cash transactions remain exact to the cent
- Treasury emphasizes consumer fairness and neutrality
Our Two Cents
This document represents the federal government's first consolidated guidance on the end of penny production. While it clarifies intent and principles, it stops short of establishing enforceable national standards, leaving implementation largely to states, retailers, and financial institutions.
Open Questions
- ?Will Treasury issue binding technical or compliance standards?
- ?How will states align tax calculation and rounding rules?
- ?What mechanisms will ensure rounding neutrality and consumer trust?
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