Trump Directs Treasury to Stop Minting Pennies Due to High Costs
President Trump has directed the U.S. Treasury to stop minting new pennies, citing excessive production costs and wasteful spending.
President Donald Trump has ordered the U.S. Treasury to cease the production of new pennies, citing excessive manufacturing costs. Posting on Truth Social Sunday night, Trump argued that making pennies is financially wasteful, stating, "Producing a penny costs more than double its actual value—this is unacceptable! I have directed my Treasury Secretary to put an end to this wasteful spending."
The Rising Cost of Pennies
Reports from the U.S. Mint show that in the 2024 fiscal year, each penny cost approximately 3.7 cents to manufacture, up from 3.1 cents the previous year. This led to an $85.3 million loss for the government. Similarly, nickels are also unprofitable, costing around 14 cents each while having a face value of just five cents.
This initiative aligns with Trump's larger goal of reducing government waste. Elon Musk, who oversees the Department of Government Efficiency, has been pushing for budget cuts and recently highlighted the high cost of producing pennies in a post on X.
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???????? https://t.co/dN4E1VcYYg — Elon Musk (@elonmusk) February 10, 2025
Does Trump Have the Power to End Penny Production?
While Trump has directed the halt of penny production, some legal analysts question whether he has the authority to do so without congressional approval. Historically, decisions regarding U.S. currency, including coin production, have been made by Congress. However, some economists believe the Treasury Secretary may have the power to pause penny production without legislative intervention.
“The legal process for discontinuing the penny is not entirely clear,” said Robert K. Triest, an economics professor at Northeastern University. “While Congress generally controls these decisions, there is a possibility that the Treasury Secretary can halt minting at their discretion.”
For years, lawmakers have debated whether to eliminate the penny altogether or temporarily suspend its production. Some proposals suggest rounding prices to the nearest five cents as a way to phase out the coin. Several countries, including Canada, stopped producing their lowest-denomination coins, with Canada officially ending penny production in 2012.
The Evolution of U.S. Coinage
If the penny is discontinued, it wouldn’t be the first time the U.S. has eliminated a low-value coin. In 1857, Congress removed the half-cent coin from circulation due to its declining usefulness in daily transactions.
Trump's administration remains focused on cutting unnecessary government spending, aiming to save $2 trillion by eliminating inefficiencies. Musk’s cost-cutting efforts include evaluating federal agencies and identifying areas where spending reductions can be implemented.
“Every wasted penny adds up,” Trump wrote. “We need to be smart about our budget—no more unnecessary spending, even on something as small as a penny.”
Trump made this announcement while departing New Orleans after attending the first half of the Super Bowl.
Also Read: Trump Prepares to Announce New Tariffs Next Week, Aiming for Fair Trade
