President Donald Trump has made a bold move by directing the US Treasury to cease minting new pennies due to the escalating cost of producing the one-cent coin. In a statement on his Truth Social platform, Trump expressed his frustration, stating, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” This decision comes amidst a flurry of executive orders and proclamations issued by the new administration, covering a wide range of issues from immigration to naming conventions.
The U.S. Mint reported a significant loss of $85.3 million in the 2024 fiscal year, ending in September, due to the production of nearly 3.2 billion pennies. The cost of each penny has risen to approximately $0.037, up from $0.031 the previous year. Similarly, the production cost of nickels is nearly $0.14 per coin. While it remains uncertain if Trump holds the unilateral authority to eliminate the penny, economic experts like Robert K. Triest of Northeastern University suggest there could be a possibility.
Triest 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.” Various members of Congress have introduced bills over the years aiming to address the issue of the penny, proposing measures such as suspending its production temporarily, removing it from circulation, or implementing a rounding system for prices to the nearest five cents.
At a recent event in the Capital One Arena, Elon Musk, head of the Department of Government Efficiency, discussed potential changes to the currency system, coinciding with Trump’s announcement. Supporters of eliminating the penny highlight benefits such as cost savings, quicker transactions at checkout counters, and aligning with international trends as several countries have already phased out their one-cent coins. For instance, Canada discontinued its penny in 2012, following in the footsteps of other nations.
The decision to halt the production of pennies reflects Trump’s broader objective of cost-cutting across various sectors. Musk, tasked with leading this initiative, aims to achieve $2 trillion in savings through streamlining operations and reducing inefficiencies. Trump’s commitment to fiscal responsibility is evident in his statement, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.” This sentiment was shared as Trump departed from New Orleans after attending the Super Bowl.
In conclusion, while the fate of the penny remains uncertain pending further legislative action, Trump’s directive marks a symbolic shift towards financial prudence and efficiency. The ongoing debate surrounding the penny reflects larger discussions on fiscal policy and government spending, underscoring the complexities of economic decision-making at the highest levels of leadership. As the nation awaits further developments, the implications of this decision on everyday transactions and broader economic trends will undoubtedly be closely monitored.
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AP White House Correspondent Zeke Miller contributed to this report.
