The Last Penny: Legal Chaos After America’s Smallest Coin Dies

12th Nov 2025
The Last Penny: Legal Chaos After America’s Smallest Coin Dies The last one-cent coin was officially struck at the U.S. Mint in Philadelphia on November 12, 2025, following a directive from President Donald Trump earlier this year - a move that has already set off complex consumer-protection and monetary-law questions across the country. U.S. Treasurer Brandon Beach oversaw the ceremonial minting, marking the quiet death of a 238-year-old American icon. For decades, pennies jingled in coffee cans and glove boxes, fueling “penny drives” and children’s savings. Now, with the stroke of a presidential order, that familiar copper tone has gone silent and its disappearance is testing the limits of state pricing laws, federal benefit regulations, and fair-trade compliance. Why the Penny Died It wasn’t emotion but economics that sealed the penny’s fate. Each coin cost 3.69 cents to make nearly quadruple its face value, according to Treasury data. President Trump called it a “waste of taxpayer money,” instructing Treasury Secretary Scott Bessent to halt production by mid-2025. The final order of copper-plated blanks was placed in May, and the Mint confirmed that no new pennies will enter circulation after early 2026. Supporters called the move long overdue. Critics say it was rushed, leaving retailers, banks, and states without a clear plan. And amid the politics, everyday Americans are asking: What happens when prices can no longer end in .99? A Small Coin with a Huge Legacy The penny’s story began in 1787, six years before the U.S. Mint itself was founded. Designed by Benjamin Franklin, the first “Fugio cent” bore the inscription Mind Your Business — a reminder of thrift and personal accountability. Its most iconic form arrived in 1909, celebrating Abraham Lincoln’s 100th birthday and making him the first U.S. president on any coin. For over a century, the penny symbolized perseverance and humility values Americans still claim to hold dear. Yet the numbers told another story. By 2025, the Mint estimated 300 billion pennies sat idle in drawers and jars, worth less than $9 per person in practical circulation. Once a symbol of opportunity, the penny had become dead weight. What the End Means for Shoppers and Stores If you pay cash, you’ll start to notice changes almost immediately. Retailers are beginning to round totals to the nearest five cents, a method already used in Canada, Australia, and New Zealand. Some stores are rounding down, absorbing small losses to stay consumer-friendly. Others are rounding up, sparking online backlash and potential legal risk. Digital payments and cards, however, still charge exact amounts. The Federal Reserve projects the shift will cost or benefit households by mere pennies per year about five cents annually per family — but it’s the confusion, not the math, that’s driving frustration. The Hidden Chaos: When Laws Collide Several states including Delaware, Connecticut, Michigan, and Oregon, require merchants to provide exact change by law.Meanwhile, the federal food assistance program SNAP mandates that recipients can’t be charged more than other customers. That means if a store rounds down for cash but not for card transactions, it could violate consumer-protection statutes or even civil-rights rules tied to federal benefit programs. Retail trade groups like the National Association of Convenience Stores (NACS) have already written to Congress demanding emergency legislation. Without it, well-intentioned rounding could become a legal minefield. Under 31 U.S.C. § 5103, all U.S. coins and currency remain legal tender for debts, public charges, taxes, and dues. Ending production doesn’t automatically revoke the penny’s status — only Congress can do that. Some state statutes, however, forbid businesses from charging different prices based on payment method or rounding practices. “Traditional rounding might violate consumer-protection laws, including cash-discounting statutes and USDA SNAP rules,” explained Holland & Knight LLP in an October 2025 bulletin on retail compliance. If a store rounds $4.97 up to $5.00 for cash customers, but not for those paying by card, it could be accused of unfair pricing or discrimination. The same issue arises for government offices accepting cash for taxes or fines. Legal analysts said that a uniform federal rounding standard would likely be needed. Until then, state-by-state rules may expose small businesses to consumer lawsuits or regulatory fines. Consumers: You have the right to know how your total was rounded. Ask for the pre-rounding price on receipts. Businesses: Apply rounding uniformly to all cash sales; document your policy to defend against claims. Lawmakers: Consider enacting consistent federal guidance to avoid chaos across 50 states. Economic Reality vs Emotional Value For most people, the penny’s demise feels bittersweet. Americans spent generations saying “a penny for your thoughts” yet now, that thought costs four times as much to mint. Economists argue the change will save over $150 million per year in production costs. But for collectors and sentimentalists, the loss feels symbolic another thread of shared memory snipped away. “I still have the jar my grandfather kept on his workbench,” said historian Joe Ditler, 74, from Colorado. “Every penny tells a story. But maybe it’s time to let that story rest.” Behind the jokes and nostalgia, this transition raises a fundamental legal question: What does fairness look like when money itself changes? As the U.S. drifts further into digital payments, issues of access, equity, and trust will follow. The penny’s farewell may be small in scale, but it’s a rehearsal for the bigger changes ahead in how Americans define and defend value. What Happens Next Consumers: Pennies remain legal tender indefinitely, but the Mint will no longer produce or distribute them. Retailers: Expect updated POS systems and legal guidance before the 2025 holiday rush. Collectors: The final Philadelphia mint batch will be auctioned, with proceeds donated to charity. Congress: The proposed Common Cents Act seeks to standardize rounding nationally — still pending. People Also Ask (PAA) Will pennies still be accepted after 2025?Yes. Existing coins remain legal tender; businesses are encouraged — not required — to accept them. Is rounding legal in the U.S.?It depends on the state. Without federal law, rounding can violate local consumer-protection rules if applied unevenly. Why not switch to digital payments entirely?Roughly 14% of U.S. households remain unbanked or underbanked, according to the FDIC, making cash essential for fairness and inclusion. Could the nickel be next?Possibly. The nickel also costs more than its value to produce, leading some policymakers to eye a two-coin phase-out.