The US Treasury has confirmed plans to phase out the penny, with one cent coins no longer produced from next year.
The decision comes three months after President Donald Trump first raised the issue on social media.
"Let's rip the waste out of our great nations budget, even if it's a penny at a time," said Trump in February, adding "this is so wasteful".
There are around 114 billion pennies in circulation, says the Treasury, with 3.2 billion minted just last year.
But, according to the US Mint's annual report, the cost of making an distributing a one cent coin was 3.69 cents in 2024, a sharp rise on the previous year.
The Treasury expects immediate annual savings of $56 million in reduced material costs from ditching the penny.
The US won't be the first country to make the move; Canada killed off its penny in 2012, citing costs and its falling utility.
The penny is not the only archaic payment method that Trump has set his eye on; in March he ordered the US federal government to phase out the use of paper cheques.