WASHINGTON (AP) — President Donald Trump has directed the Treasury Department to stop minting new pennies, citing the high cost of producing the one-cent coin.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump posted on Truth Social. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
The U.S. Mint reported an $85.3 million loss in the 2024 fiscal year from producing nearly 3.2 billion pennies, each costing nearly $0.037 to make. The nickel is also unprofitable, costing nearly $0.14 per coin.
While Trump’s authority to unilaterally eliminate the penny is unclear, currency specifications are dictated by Congress. However, Robert K. Triest, an economics professor at Northeastern University, suggests that the Treasury Secretary might have the power to halt production.
Congress has long debated eliminating the penny, with past proposals seeking to suspend production, remove it from circulation, or round prices to the nearest five cents. Supporters argue eliminating it would save money and speed up transactions. Canada, for example, stopped minting its penny in 2012.
Trump’s decision aligns with his administration’s aggressive cost-cutting efforts, led by Elon Musk’s Department of Government Efficiency. Musk has been tasked with identifying $2 trillion in savings by targeting agencies and federal workforce reductions.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump wrote.
The announcement came as Trump departed New Orleans after watching the first half of the Super Bowl.