President Donald Trump has ordered the U.S. Treasury to halt the production of pennies, citing their excessive cost and waste.
At a Glance
- Trump directs Treasury to stop minting new pennies due to high production costs
- Each penny costs nearly $0.037 to make, resulting in an $85.3 million loss in FY 2024
- The move is part of a broader effort to cut government spending
- Legal authority for this action is unclear and may face challenges
- Several countries have already eliminated their smallest denomination coins
Trump’s Cost-Cutting Initiative
President Donald Trump has taken a bold step in his efforts to reduce government spending by ordering the U.S. Treasury to cease the production of pennies. The decision, announced on Trump’s Truth Social platform, highlights the inefficiency of producing coins that cost more than their face value.
According to reports, the U.S. Mint lost $85.3 million in the 2024 fiscal year from producing nearly 3.2 billion pennies, with each coin costing nearly $0.037 to manufacture. This stark financial reality has prompted Trump to take action, supported by Elon Musk’s Department of Government Efficiency (DOGE).
“Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” Trump said.
Trump instructs the US Treasury to halt penny production, citing the high cost of producing one cent https://t.co/PZBgX04YrA
— CNN Breaking News (@cnnbrk) February 10, 2025
Fiscal Responsibility and Environmental Benefits
The move to eliminate the penny is not just about fiscal responsibility; it also has potential environmental benefits. Surprisingly, this initiative has garnered support from across the political aisle. Democratic Colorado Governor Jared Polis endorsed the decision, emphasizing its positive impact on both taxpayers and the environment.
“As well as saving taxpayers hundreds of millions of dollars, there are major environmental benefits to eliminating the penny. This is a great move,” Polis said.
Trump’s directive is part of a broader cost-cutting strategy aimed at identifying $2 trillion in savings. The President has emphasized the importance of eliminating waste in the national budget, even if it involves small savings like the penny.
Legal and Practical Challenges
While the intention behind Trump’s order is clear, its implementation may face legal and practical hurdles. Currency specifications are typically determined by Congress, raising questions about the executive branch’s authority to unilaterally discontinue a coin.
“The process of discontinuing the penny in the U.S. is a little unclear. It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop the minting of new pennies,” economics professor Robert K. Triest said.
If the penny is eliminated, it could lead to changes in how cash transactions are conducted. Prices might be rounded to the nearest five cents, similar to practices adopted in other countries that have removed their smallest denomination coins. Canada, for example, has already successfully phased out its penny.
A History of Debate
The cost inefficiency of penny production has been a topic of debate for years. Previous attempts to address this issue through legislation have failed in Congress. The U.S. previously discontinued the half-cent coin in 1857, setting a precedent for eliminating low-value currency.