Trump Directed US Treasury to Stop Minting Pennies
Posted by Andrew Adamo on Feb 10th 2025
Trump Directed US Treasury to Stop Minting Pennies
President Donald Trump announced that he has instructed the Treasury Department to halt the production of new pennies, citing the increasing cost of minting the one-cent coin.
President Donald Trump says he has directed the Treasury Department to stop minting new pennies, citing the rising cost of producing the one-cent coin.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote in a post Sunday night on his Truth Social site. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
Trump had not discussed his desire to eliminate the penny during his campaign. But Elon Musk's so-called Department of Government Efficiency raised the prospect in a post on X last month highlighting the penny’s cost.
The U.S. Mint reported losing $85.3 million in the 2024 fiscal year that ended in September on the nearly 3.2 billion pennies it produced. Every penny cost nearly $0.037 — up from $0.031 the year before.
What About Nickel?
The U.S. Mint also incurs losses on the nickel, as each $0.05 coin costs nearly $0.14 to produce.
It remains unclear whether President Trump has the authority to eliminate the penny unilaterally, as currency specifications—including the size and metal content of coins—are determined by Congress.
However, Robert K. Triest, an economics professor at Northeastern University, suggested there could be some flexibility in the process.
“The process of discontinuing the penny in the U.S. is somewhat unclear. While it would likely require an act of Congress, the Secretary of the Treasury might have the authority to stop minting new pennies,” he said last month.
Members of Congress have introduced various bills over the years targeting the penny. These proposals have included efforts to temporarily suspend its production, remove it from circulation, or mandate that prices be rounded to the nearest five cents, according to the Congressional Research Service.
Benefits
Supporters of eliminating the penny argue that it would save money, speed up transactions at cash registers, and align the U.S. with other countries that have phased out their lowest-denomination coins. Canada, for example, stopped minting its penny in 2012.
This wouldn’t be the first time the U.S. discontinued its least valuable coin—Congress eliminated the half-cent piece in 1857.
Trump’s administration has prioritized aggressive cost-cutting, with Elon Musk leading the effort to slash government spending. Musk has targeted entire agencies and large sections of the federal workforce in pursuit of $2 trillion in savings.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump wrote in his post.
He sent the message while departing New Orleans after watching the first half of the Super Bowl.
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