Trump Says He Has Told Treasury To Halt Penny Minting

President Donald Trump says he has ordered the Treasury to halt penny production, citing wasteful spending and inefficiency.

Quick Takes

Trump revealed he instructed the Treasury to stop minting new pennies due to production costs exceeding face value.
U.S. Mint reported $85.3 million loss from penny production in 2024 fiscal year.
The move aligns with a broader effort to cut government spending, supported by Elon Musk’s Department of Government Efficiency.
The legal authority for penny elimination through executive action remains unclear.
Advocates argue discontinuing penny would reduce costs and align with international trends.

Trump Takes Aim at Penny Production

President Donald Trump has announced that he directed the U.S. Treasury to cease the minting of new pennies. The decision was revealed in a post from Trump on Truth Social which stated, “Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”

According to reports, the U.S. Mint incurred a substantial loss of $85.3 million in the 2024 fiscal year from producing nearly 3.2 billion pennies, with each coin costing approximately $0.037 to manufacture.

Trump’s initiative is part of a broader strategy to streamline government expenses, supported by Elon Musk’s Department of Government Efficiency (DOGE). The move has garnered attention from both sides of the political aisle, with even Democratic Colorado Governor Jared Polis expressing support for the potential environmental and economic benefits.

Trump orders halt on "wasteful" pennies after DOGE highlighted cost https://t.co/xdUu3xUg85

— Newsweek (@Newsweek) February 10, 2025

Legal and Economic Implications

While the intent to eliminate penny production is clear, questions remain about the legal authority to do so through executive action. Currency specifications are typically determined by Congress, and previous legislative attempts to address the penny issue have failed. Robert K. Triest of Northeastern University suggested that discontinuing the penny might require an act of Congress, although the Treasury Secretary may have the authority to halt new penny minting.

The economic impact of eliminating the penny could be significant. Advocates argue that discontinuing the coin would not only reduce costs but also expedite checkout times and align the U.S. with international trends. Several countries, including Canada, have already eliminated their smallest denomination coins, providing a potential model for the U.S. to follow.

Still, some critics have expressed concerns that such a move could exacerbate inflation by causing payments to be rounded up.

Broader Cost-Cutting Measures

Trump’s administration, with Elon Musk leading a task force, is focused on identifying $2 trillion in savings across the government. The penny directive is an aspect of this larger initiative to reduce waste in the national budget.

If the penny is eliminated, it could lead to changes in retail pricing, with some suggesting that prices might be rounded to the nearest five cents, similar to practices adopted in other countries that have discontinued their lowest denomination coins. However, some of the administration’s cost-cutting measures have faced legal challenges from Democrats and labor unions, indicating that the path to implementing these changes may not be smooth.

As the debate over the penny’s future continues, it’s clear that this small coin has become a symbol of larger discussions about government efficiency, economic policy, and the balance between tradition and pragmatism in U.S. currency. The outcome of Trump’s directive could depend on potential legal challenges and congressional intervention, leaving the fate of the penny uncertain for now.