President Donald Trump has announced his intention to halt the production of the U.S. penny, citing the rising costs associated with minting the coin. In a post on his Truth Social platform, Trump stated, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!”
The U.S. Mint has reported significant losses related to penny production. In the 2024 fiscal year, the government spent approximately $85.3 million to produce nearly 3.2 billion pennies, with each penny costing around 3.7 cents to manufacture. The cost of producing nickels has also exceeded their face value, requiring nearly 14 cents per coin.
While Trump has declared his directive to the U.S. Treasury Department, it remains unclear whether he has the legal authority to unilaterally discontinue the penny, as currency regulations are generally determined by Congress. Over the years, lawmakers have proposed multiple bills to eliminate the penny, arguing that doing so would save money and improve transactional efficiency. Countries like Canada have already taken similar steps, discontinuing their one-cent coin in 2012.
This effort aligns with broader cost-cutting initiatives led by Trump’s team, which includes billionaire entrepreneur Elon Musk. The administration has reportedly set a goal of identifying $2 trillion in federal savings. Trump reiterated his commitment to eliminating government waste, saying, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The proposal to eliminate the penny has long been debated, with supporters arguing that rounding transactions to the nearest five cents would simplify commerce while opponents claim that doing so could lead to unintended economic consequences. As discussions unfold, the fate of the U.S. penny may soon be decided by lawmakers.
