WASHINGTON — President Donald Trump has directed the Treasury Department to halt the minting of new pennies, citing the rising cost of production.
“For far too long, the United States has minted pennies which cost more to produce than their actual value. This is so wasteful!” Trump wrote on Truth Social on Sunday night. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
The Cost of Producing Pennies
The U.S. Mint reported losing $85.3 million in the 2024 fiscal year on the nearly 3.2 billion pennies it produced. Each penny cost nearly $0.037 to manufacture—up from $0.031 the year before. The mint also faces losses on the nickel, which costs $0.14 to produce despite its $0.05 face value.
Trump’s decision aligns with a broader push to reduce government inefficiencies, spearheaded by Elon Musk, who is leading the Department of Government Efficiency. Musk had previously highlighted the wasteful cost of penny production in a post on X last month.
Does Trump Have the Power to Eliminate Pennies?
It remains unclear whether Trump can unilaterally discontinue the penny. Congress dictates currency specifications, including the size and metal content of coins. However, some experts argue that the Treasury Secretary may have the authority to halt production without direct congressional approval.
“Discontinuing the penny in the U.S. is a complex process,” said Robert K. Triest, an economics professor at Northeastern University. “It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop minting new pennies.”
A Longstanding Debate on the Penny’s Future
Efforts to eliminate the penny have surfaced repeatedly in Congress over the years. Proposals have ranged from temporarily suspending production to removing it from circulation entirely or requiring businesses to round prices to the nearest five cents.
Advocates for removing the penny cite multiple benefits, including:
- Cost savings for the government
- Faster transactions at cash registers
- The fact that other countries, such as Canada, eliminated their one-cent coins without major economic disruption
The United States has eliminated low-value coins before. In 1857, Congress discontinued the half-cent coin due to its diminishing purchasing power.
Budget Cuts and Trump’s Cost-Saving Strategy
Trump’s administration is actively focused on cutting government costs, with Musk leading efforts to identify $2 trillion in budget reductions. The initiative includes eliminating inefficiencies across multiple federal agencies and reducing the federal workforce.
“Let’s rip the waste out of our great nation’s budget, even if it’s one penny at a time,” Trump stated.
Trump’s announcement came as he departed New Orleans after attending the first half of the Super Bowl.
COMMENTS