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President Trump orders halt to penny production, citing wasteful spending and inefficiency.
Key Takeaways
- Trump instructs U.S. Treasury to stop minting new pennies due to high production costs
- Each penny costs over 3 cents to produce, resulting in significant taxpayer losses
- The U.S. Mint reported a loss of $85.3 million in 2024 from penny production
- Trump’s authority to halt penny production is questionable, as Congress oversees coin manufacture
- Other countries have already phased out low-denomination coins, setting a precedent
Trump Takes Aim at Penny Production
In a bold move to cut government waste, President Donald Trump has ordered the U.S. Treasury to cease production of new pennies. This decision comes as part of his administration’s efforts to identify and eliminate inefficiencies in government spending. The rising cost of penny production has long been a point of contention, with each coin costing more than three times its face value to manufacture.
Trump’s decision has sparked debate about the practicality of maintaining the penny in circulation. The Department of Government Efficiency, led by Elon Musk, has been instrumental in highlighting the financial burden of penny production on taxpayers. In the 2024 fiscal year alone, the U.S. Mint reported a staggering loss of $85.3 million from producing nearly 3.2 billion pennies.
“For far too long the United States has minted pennies which literally cost us more than 3 cents. This is so wasteful!” stated President Donald Trump, emphasizing the need for fiscal responsibility even in the smallest denominations of currency.
The Cost of Keeping Pennies
The financial burden of penny production has become increasingly apparent in recent years. In fiscal year 2023, the production of pennies cost U.S. taxpayers over $179 million, with 4.5 billion pennies produced. The rising costs of metals like zinc and copper have contributed significantly to the increased production costs, pushing the price per penny to approximately 3.7 cents in 2024.
This wasteful spending has caught the attention of Trump’s administration, which is focused on cutting costs and identifying $2 trillion in savings. The decision to halt penny production is seen as a step towards achieving this goal, albeit a small one.
No more minting ‘wasteful’ pennies, Trump tells Treasury https://t.co/QFXZpjVpEN
— BBC News (World) (@BBCWorld) February 10, 2025
Precedents and Challenges
The United States is not alone in reconsidering the value of low-denomination coins. Countries such as Canada, Ireland, the Netherlands, and Brazil have already stopped producing or circulating similar coins. These examples provide a blueprint for how the U.S. might proceed with phasing out the penny.
However, Trump’s authority to unilaterally stop penny production is questionable. Congress traditionally oversees coin currency manufacture, which may lead to legal challenges or the need for legislative action to implement this change. The U.S. has previously discontinued the half-cent coin in 1857, demonstrating that such changes are possible with proper procedures.
“Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.” Trump declared, highlighting his commitment to fiscal conservatism and government efficiency.
Looking Ahead
As the government prepares for this transition, questions arise about future pricing practices and how transactions might be rounded in the absence of one-cent coins. Proponents of eliminating the penny cite potential cost savings, faster transactions, and successful examples from other countries like Canada.
While the fate of the penny remains uncertain, this move by the Trump administration signals a renewed focus on eliminating government waste, even in areas that might seem insignificant at first glance. As the debate continues, Americans may soon find themselves adjusting to a currency system without the familiar copper-coated coin that has been a staple of U.S. currency for over two centuries.