Former President Donald Trump announced Sunday that he has ordered the U.S. Treasury to halt the production of new pennies, citing the rising cost of minting the one-cent coin.
Posting on Truth Social, Trump declared that continuing to manufacture pennies was “wasteful”, given that each coin costs nearly 3.7 cents.
“For far too long, the United States has minted pennies which cost us more than 2 cents. This is so wasteful!” Trump wrote. “I have instructed my Secretary of the U.S. Treasury to stop producing new pennies.”
Financial and Legislative Implications
The decision follows reports from the U.S. Mint, which revealed a $85.3 million loss in 2024 due to the cost of penny production. Rising metal prices have steadily increased manufacturing prices, sparking debates about the coin’s future.
However, it remains unclear whether Trump has the authority to stop penny production outright. Congress dictates U.S. currency specifications, including coin size and metal composition. Experts suggest that while the Secretary of the Treasury may have some discretion, a full discontinuation would likely require congressional approval.
Robert K. Triest, an economics professor at Northeastern University, noted that existing laws allow for “wiggle room,” but a formal decision to phase out the penny would likely require new legislation.
Longstanding Debate Over the Penny’s Future
Discussions about the elimination of the penny have been ongoing in Congress for decades, with lawmakers introducing multiple bills aimed at suspending production, removing the coin from circulation, or requiring price rounding to the nearest five cents.
Proponents of eliminating the penny argue that it would:
- Save millions in production costs
- Streamline cash transactions and reduce checkout times
- Align the U.S. with countries like Canada, which stopped minting its penny in 2012
The U.S. has previously phased out low-value coins, with Congress discontinuing the half-cent piece in 1857.
A Broader Cost-Cutting Initiative
Trump’s directive comes amid a broader cost-cutting effort led by Elon Musk, who has been tasked with identifying $2 trillion in government savings. Musk has already targeted federal agencies and workforce reductions in an attempt to curb spending.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump added.
As Trump left New Orleans after attending the Super Bowl, the political and economic debate over the penny’s fate is just beginning.
