President Donald Trump has directed the Treasury Department to halt the production of new pennies, calling the continued minting of the one-cent coin “wasteful.” On Sunday night, Trump posted on his Truth Social platform that the cost of producing each penny exceeds two cents, putting an unnecessary burden on taxpayers. “For far too long the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote. “This is so wasteful!”
The U.S. Mint also loses money on producing nickels, which cost nearly $0.14 to make for each $0.05 coin. While Trump’s directive has sparked conversation, it is unclear whether the President has the power to eliminate the penny without Congressional approval, as currency specifications—including the size and metal content of coins—are determined by lawmakers.
Proponents of eliminating the penny argue that it would lead to cost savings, faster transactions, and more efficiency at cash registers. Countries like Canada, which stopped minting pennies in 2012, have already taken similar steps. Historically, the U.S. has eliminated low-value coins, such as the half-cent coin in 1857, to streamline the currency system.
Trump’s administration has prioritized cutting government waste, with Elon Musk leading a task force to target inefficiencies across federal agencies. If the penny is officially eliminated, it would be part of a broader effort to reduce unnecessary government spending.
The fate of the penny remains uncertain, but the proposal has added fuel to the ongoing debate about the efficiency of the U.S. currency system.
