President Donald Trump has directed the U.S. Treasury Department to cease the minting of pennies, citing the rising costs associated with producing the one-cent coin. In a post on his Truth Social platform, Trump stated, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” as reported by CNN.
Losing Millions
The U.S. Mint reported that in the 2024 fiscal year, it lost $85.3 million on the nearly 3.2 billion pennies produced, with each penny costing approximately $0.037 to manufacture. This marks an increase from the previous year’s cost of $0.031 per penny.
While the decision to halt penny production is part of a broader initiative by the Trump administration to reduce government expenditures, it remains uncertain whether the President has the unilateral authority to discontinue the coin’s production. Currency specifications, including the size and metal content of coins, are typically determined by Congress.
An Economist Weighs In
Robert K. Triest, an economics professor at Northeastern University, noted, “The process of discontinuing the penny in the U.S. is a little unclear. It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop the minting of new pennies,” as reported by The Associated Press.
The debate over the penny’s future has been ongoing for years. Proponents of eliminating the coin argue that it is a financial burden and unnecessary in modern transactions. Economist Henry Aaron previously suggested eliminating both pennies and nickels to simplify transactions.”Life would be simpler without this monetary detritus,” he wrote in his commentary “Let’s Drop Pennies, and Nickels Too While We’re At It,” as reported by Reuters.
Several countries, including Canada, Australia, and New Zealand, have already discontinued their one-cent coins, citing similar cost concerns. Canada ceased minting its penny in 2012.
The Case to Keep Pennies
Supporters of the penny claim it helps keep consumer prices lower and supports charities. Americans for Common Cents, an organization advocating for the continued production of pennies, also contends that “while the penny’s production cost exceeds its face value, the real culprit for losses is the nickel, which costs nearly 14 cents per unit to produce. By eliminating the penny, the Mint would inevitably need to produce more nickels, compounding the losses associated with nickel production,” as reported by Forbes. Mark Weller, the group’s executive director, has also confirmed that Artazn—the company supplying zinc coin blanks to the U.S. Mint for penny production—is one of its supporters.
As the Trump administration moves forward with this initiative, it remains to be seen how Congress will respond and whether the President’s directive will lead to the permanent discontinuation of the penny in the United States.
