And the penny drops. Literally. As in, from the list of coins produced by the US Mint as of November 12th, 2025. While the continued production of America’s lowest-value coin has been a matter of debate for the last few decades, it wasn’t until President Donald Trump announced on social media in February of 2025 that the federal government would soon stop printing pennies that the issue became moot.

And so, after 238 years, America will stop making new pennies. But what effects will this have at the registers of stores across the country? Well, when it comes to Military Exchanges, we can offer some definitive answers.

Why Was the Penny Discontinued?

There are two reasons that the US Mint will stop producing pennies. The first is the simple fact that the buying power of a single cent is virtually nil. While a hundred years ago a person could buy candy or even a newspaper with a penny or two, no items whatsoever cost as little in 2025.

The second reason is perhaps more surprising but no less important: it actually costs the government more to make a penny than it’s worth. That’s right, it costs the US 3.69 cents for every penny it produces; it takes almost four pennies’ worth of capital to produce just one coin!

Eliminating that expense will save the government a whole lot of money for decades to come.

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Military Exchanges and the End of the Penny

Exchanges at every base in America, across every branch of the Armed Forces, will, like all American retailers, need to adjust to the discontinuation of penny production.

Starting on January 1st of 2026, all Army and Air Force Exchanges will begin rounding purchase totals up or down to the nearest nickel or dime. Navy Exchanges will soon do the same, though their spokespeople have not mentioned a specific date when they will formally adopt the policy.

In both bases, this policy applies only (as of now) to cash transactions. Purchases made via other payment means (such as credit or debit cards) will still be calculated to the cent for the time being.

How Will the End of the Penny Affect Overseas Exchanges?

It won’t. Not even a little. Exchanges on posts outside the Continental United States have been rounding purchases to the nearest nickel ever since the 1980s.

So, while the discontinuation of penny production will change prices a little at exchanges here in the US, those shopping at overseas exchanges won’t be affected at all.

Are Pennies Still Money?

Yes, pennies are still legal tender worth 1/100th of a dollar as they have been for over two centuries. And the roughly three hundred billion of them already in circulation will remain so for years to come.

Continue to spend them, save them, donate them, hang on to them for a coin collection, or bring them to your nearest Coinstar machine.

The Mint may not produce them anymore, but pennies will likely remain in your life for years to come.

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