Trump Reveals He Told Treasury To Stop Penny Production

President Donald Trump says he has directed that the US stop producing pennies, potentially marking a monumental shift in American currency.

Key Takeaways

President Trump announced he told the Treasury to halt the minting of pennies to cut government spending.
The production cost of a penny exceeds its value, causing an $85.3 million loss in 2024.
Trump’s directive aligns with efforts by Elon Musk’s Department of Government Efficiency.
The move mirrors previous international actions, such as Canada’s penny elimination.
Legal authority for such action is uncertain and may require congressional involvement.

Trump Orders Cessation of Penny Production

President Donald Trump recently revealed that he instructed the U.S. Treasury to cease the production of pennies. This measure, announced on his Truth Social platform, aims to cut government spending as part of broader fiscal reforms. The rationale lies in the cost to produce these coins, which exceeds their monetary value. In fiscal year 2024 alone, the U.S. Mint reported an $85.3 million loss from producing 3.2 billion pennies, each carrying a cost of $0.037.

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” stated Trump in his social media announcement.

Penny no more?

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote in a post Sunday night on his Truth Social site. https://t.co/S45pKRud4V

— 12 News (@12News) February 10, 2025

Fiscal Policies and Government Efficiency

This directive notably involves Elon Musk’s newly established Department of Government Efficiency (DOGE). Trump’s call for penny cessation reflects the new administration’s focus on reducing what is being deemed government waste, notwithstanding the necessity of potential congressional support for such monetary policy changes.

In historical context, this move is not unprecedented; the U.S. had previously abolished the half-cent coin in 1857. The move aligns with actions taken by various nations, including Canada, which successfully phased out its smallest denomination coin, adopting price rounding strategies as a result.

Challenges and Legislation for Penny Cessation

The directive’s effectiveness may depend on legal scrutiny and potential challenges in Congress. It is unclear whether the president can order the cessation of penny minting. One expert, Robert K. Triest of Northeastern University, said, “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.”

This move has garnered support from some lawmakers. Democratic Colorado Governor Jared Polis endorsed the initiative, highlighting taxpayer savings and environmental advantages.