Trump Wants To Stop Producing Pennies

President Donald Trump stated that he directed the Treasury to halt penny production, citing wasteful spending and sparking questions about the future of U.S. currency.

Key Insights

Trump says he ordered the Treasury to stop minting pennies, citing production costs exceeding face value
Each penny costs nearly $0.037 to produce, resulting in an $85.3 million loss in FY 2024
The directive is part of a broader effort to cut government spending.
There has been debate about the legal authority to end penny production.
Several countries have already eliminated their smallest denomination coins

Trump’s Directive to Halt Penny Production

President Donald Trump says he has instructed the U.S. Treasury Department to cease the production of new pennies. Trump announced this decision on his Truth Social platform, highlighting the financial burden of minting coins that cost more than their face value. The U.S. Mint reported a staggering loss of $85.3 million in the 2024 fiscal year from producing nearly 3.2 billion pennies, with each coin costing approximately $0.037 to manufacture.

Trump’s directive is part of a broader initiative to reduce government spending, supported by Elon Musk’s newly established Department of Government Efficiency (DOGE). This move has ignited questions about the future of U.S. currency and the potential impact on the economy.

The Cost of Minting Small Change

The penny is not the only coin that costs more to produce than its face value. The nickel, too, has become a financial burden, with production costs reaching nearly $0.14 per coin. Lawmakers have reportedly made previous attempts to suspend penny production or remove it from circulation entirely.

Advocates for discontinuing the penny argue that such a move would not only reduce costs but also expedite checkout times and align the United States with international trends. Several countries, including Canada, have already eliminated their smallest denomination coins, setting a precedent for such action.

Meanwhile, there are some who argue that such a decision could contribute to inflation by forcing prices to be rounded up.

Legal and Political Implications

While Trump’s directive has garnered support from some quarters, including Democratic Colorado Governor Jared Polis, who cited taxpayer savings and environmental benefits, the legal authority for such a move remains uncertain. Robert K. Triest of Northeastern University indicated that discontinuing the penny might require an act of Congress, but added that the Treasury Secretary may have the authority to halt the minting of new pennies.

The outcome of Trump’s directive could depend on potential legal challenges and congressional intervention. It’s worth noting that the United States previously discontinued the half-cent coin in 1857, demonstrating that such changes to currency are not without precedent.

NEW – Trump tells US Treasury to stop minting new pennies https://t.co/RSy4WMnP5r

— Insider Paper (@TheInsiderPaper) February 10, 2025

Potential Impact and Future Considerations

If the penny is indeed eliminated, it could lead to changes in pricing strategies, with some suggesting that prices might be rounded to the nearest five cents. This shift could have implications for consumers and businesses alike. Trump’s administration, with Elon Musk leading a task force, is focused on identifying $2 trillion in savings.

As the debate continues, it’s clear that the humble penny has become a symbol of a larger discussion about government spending, fiscal responsibility, and the evolving nature of currency in the modern era. Whether this move will result in significant savings or face legal hurdles remains to be seen, but it has certainly reignited a conversation about the value of our smallest coin.