Trump Orders Treasury to Stop Producing Pennies
President Donald Trump has ordered the Treasury Department to halt the production of pennies due to rising production costs. In a post on Truth Social, Trump wrote, "For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" He added, "Let's rip the waste out of our great nations budget, even if it's a penny at a time."
The decision follows growing scrutiny over the cost of producing pennies, which has long been debated in the U.S.. According to the U.S. Mint’s 2024 annual report, each penny costs nearly 3.7 cents to produce—up more than 20% from the previous year. The rising price of metals, particularly zinc and copper, has contributed to the increased cost.
And the penny isn’t the only coin that costs more to make than its face value. The U.S. Mint also loses money on the nickel, which costs nearly 14 cents to produce. Some economists have suggested that eliminating both pennies and nickels could further reduce government waste.
The push to eliminate the penny gained momentum last month after Elon Musk’s Department of Government Efficiency (DOGE) highlighted the issue in a post on X. While Trump did not campaign on eliminating the penny, his administration has been focused on aggressive cost-cutting measures. Musk, who has been involved in finding ways to reduce government spending, has targeted entire agencies and federal programs to meet a $2 trillion savings goal.
Congress has also debated the fate of the penny for years. While various bills have proposed eliminating or suspending its production, none have passed. Some lawmakers have argued that phasing out the penny would streamline transactions and reduce costs, while opponents claim it could lead to price increases and impact fundraising efforts by charities that rely on penny donations.
Other countries have already taken similar steps. Canada stopped minting pennies in 2012 due to their production cost and decreasing purchasing power. The U.K. has also seen periods where certain low-value coins were not minted due to declining cash use.
Despite Trump’s directive, it remains unclear whether he has the legal authority to stop penny production without congressional approval. Currency specifications, including coin sizes and metal compositions, are controlled by Congress. However, some experts believe the Treasury Secretary may have the power to halt new production without legislative action.
Trump’s announcement has sparked debate over whether the U.S. should take additional steps toward reducing cash-based transactions. While some see the move as a common-sense cost-saving measure, others worry about its broader economic impact.
For now, existing pennies will remain in circulation, but whether the coin will be permanently discontinued remains to be seen.
