President Donald Trump announced Sunday that he has instructed the U.S. Treasury Department to cease minting new pennies, citing the rising cost of producing the one-cent coin.
“For far too long, the United States has minted pennies that cost us more than double their value. This is so wasteful!” Trump wrote in a post on Truth Social. “I have directed my Treasury Secretary to stop producing new pennies.”
The decision is part of Trump’s broader push to cut government spending through executive action, following recent efforts targeting immigration policies, federal diversity programs, and even the naming of geographic landmarks.
Trump had not publicly mentioned eliminating the penny during his campaign. However, the issue gained traction last month after the so-called Department of Government Efficiency, overseen by Elon Musk, highlighted the coin’s production cost in a social media post.
Efforts to phase out the penny are not new. Over the years, lawmakers have introduced multiple bills proposing to suspend production, remove the coin from circulation, or implement price rounding to the nearest five cents. Other countries, including Canada, discontinued their lowest-denomination coins years ago. The U.S. previously eliminated the half-cent coin in 1857.
The administration’s focus on budget efficiency aligns with Musk’s ongoing initiative to slash $2 trillion in federal spending, which has already targeted entire agencies and sections of the government workforce.
“Let’s rip the waste out of our great nation’s budget—even if it’s a penny at a time,” Trump wrote.
The U.S. Mint reported a loss of $85.3 million in the 2024 fiscal year from producing nearly 3.2 billion pennies, with each coin costing about $0.037 to manufacture. The agency also loses money on nickels, which cost nearly $0.14 per coin.
It remains unclear whether Trump has the authority to unilaterally discontinue penny production. The specifications for U.S. currency, including coin composition and size, are set by Congress.
However, some economists believe there may be legal flexibility. Robert K. Triest, an economics professor at Northeastern University, suggested that while legislative action would typically be required, the Treasury Secretary might have the authority to halt production.
“The process of discontinuing the penny in the U.S. is somewhat unclear,” Triest noted. “It would likely require congressional approval, but the Treasury Department may be able to stop minting new pennies without legislative intervention.”
Trump shared his announcement while departing New Orleans after attending the first half of the Super Bowl.
