- President Trump has directed the Treasury Department to halt the production of new pennies, citing the rising cost of producing the one-cent coin
- The U.S. Mint reported a significant financial loss from penny production in the 2024 fiscal year, with each penny costing nearly $0.037 to make
- While it's unclear if Trump has the authority to eliminate the penny unilaterally, this move aligns with his administration's efforts to cut costs and enact sweeping changes
Washington, D.C., USA – President Trump has announced that he has directed the Treasury Department to halt the production of new pennies, citing the rising cost of producing the one-cent coin.
In a post on his Truth Social site on Sunday night, Trump stated, "For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!"
Cost concerns and treasury directives
This latest move by Trump is part of his administration's rapid-fire efforts to enact sweeping changes through executive orders and proclamations.
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The U.S. Mint reported a loss of $85.3 million in the 2024 fiscal year on the nearly 3.2 billion pennies it produced, with each penny costing nearly $0.037 to make.
According to CBS News, the mint also incurs losses on nickels, which cost nearly $0.14 each to produce.
Legislative and economic implications
It remains uncertain whether the US has the authority to unilaterally eliminate the one-cent coin, as currency specifications are dictated by Congress.
However, Robert K. Triest, an economics professor at Northeastern University, suggested that the Secretary of the Treasury might have the ability to stop minting new pennies.
Legislators have repeatedly introduced proposals to suspend penny production, eliminate it from circulation, or round prices to the nearest five cents.
Historical context and future savings
The U.S. had previously eliminated its least valuable coin, discontinuing the half-cent coin in 1857.
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Proponents of eliminating the penny argue for cost savings, faster checkouts, and the precedent set by other countries like Canada, which stopped minting its penny in 2012.
Trump's administration, with Elon Musk leading the effort, is focused on cutting costs, targeting entire agencies and large portions of the federal workforce to identify $2 trillion in savings.
Five Donald Trump's executive orders
Legit.ng reported that on his first day in office, Donald Trump, the newly inaugurated United States president, issued over 200 executive orders. These orders addressed immigration, climate change, pardons, and foreign policies.
The elected executive branch issues executive orders. These orders carry the weight of the law but can be overturned by succeeding presidents or the court.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
