President Donald Trump has announced that he has instructed the Treasury Department to stop minting new pennies due to the rising cost of production. In a post on his Truth Social site, Trump expressed his frustration over the fact that it costs more than 2 cents to produce a one-cent coin, calling it wasteful. The move to eliminate the penny is part of Trump’s efforts to cut costs and enact sweeping changes through executive orders.
The U.S. Mint reported a loss of $85.3 million in the 2024 fiscal year due to the production of nearly 3.2 billion pennies, with each penny costing around $0.037 to make. While it is unclear if Trump has the authority to unilaterally eliminate the penny, some experts suggest that the Secretary of the Treasury could stop minting new pennies without an act of Congress.
Proponents of eliminating the penny argue that it would result in cost savings and streamline checkout processes. Many countries, including Canada, have already eliminated their one-cent coins. This wouldn’t be the first time the U.S. has eliminated its least valuable coin, as the half-cent coin was discontinued in 1857. Trump’s administration, with Elon Musk leading the cost-cutting efforts, is focused on identifying $2 trillion in savings from various government expenditures.
The announcement comes as Trump was departing New Orleans after watching the first half of the Super Bowl. Members of Congress have introduced legislation over the years aiming to eliminate the penny, suggesting alternative solutions like rounding prices to the nearest five cents. Despite the potential challenges, the move to stop minting new pennies reflects Trump’s commitment to reducing government waste.
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