Trump Orders Treasury to Stop Minting Pennies, Calling Them Wasteful

President Trump announced Sunday that he has directed the Treasury Department to halt the production of pennies, arguing that the one-cent coin is an unnecessary expense for the U.S. government.

In a post on Truth Social, Trump stated that minting pennies costs more than they are worth, making them an example of government inefficiency.

“For far too long, the United States has minted pennies, which literally cost us more than two cents each. This is so wasteful!” Trump wrote. “I have instructed my Secretary of the U.S. 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.”

The decision marks a major shift in U.S. coinage policy and aligns with broader efforts by the Trump administration to reduce government spending. According to the U.S. Mint’s annual report, the cost of producing a single penny reached nearly 3.7 cents in Fiscal Year 2024.

For 19 consecutive years, the cost of minting the penny has exceeded its face value, leading to millions of dollars in taxpayer losses.

Pennies have a long history in the United States. First minted in 1793, they were originally made of copper before transitioning to a zinc core with copper plating in 1982.

President Abraham Lincoln has been featured on the penny since 1909, making it one of the most recognizable coins in circulation. However, the growing cost of production and declining public use have fueled debates over whether the penny should be eliminated.

Trump’s move to end penny production follows calls from government officials and business leaders to reevaluate the coin’s relevance. Many economists argue that pennies are rarely used for transactions and often end up sitting in jars, drawers, or being discarded.

Countries such as Canada, Australia, and New Zealand have already discontinued their lowest-value coins, opting instead for rounding systems in cash transactions.

One of the most vocal critics of the penny has been billionaire entrepreneur Elon Musk, who was appointed by Trump to lead the Department of Government Efficiency (DOGE), an agency tasked with identifying and eliminating government waste.

Last month, Musk took to X (formerly Twitter) to highlight the high cost of producing pennies.

“The penny costs over 3 cents to make and cost U.S. taxpayers over $179 million in FY2023,” Musk’s agency wrote. “The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation. Penny (or 3 cents!) for your thoughts.”

Musk’s criticism gained traction among conservative lawmakers and fiscal watchdog groups, who argue that eliminating pennies would reduce wasteful spending without any real impact on daily life.

Opponents of the move, however, argue that eliminating pennies could create minor pricing issues for cash transactions and impact businesses that rely on exact change. Charities that run penny donation drives have also voiced concerns, noting that pennies contribute to millions of dollars in annual fundraising.

Despite the backlash, Trump appears determined to move forward with the plan. The U.S. Treasury Department is expected to provide additional details on how and when penny production will cease.

Some experts speculate that the process will involve a gradual phase-out rather than an immediate halt to circulation.

The decision to eliminate the penny is part of a broader initiative by the Trump administration to cut down on government expenses. Since taking office, Trump has repeatedly emphasized the need to eliminate inefficiencies, reduce federal debt, and streamline government operations.

By cutting out small but unnecessary expenditures like penny production, the administration aims to signal a commitment to fiscal responsibility.

It remains to be seen whether Trump’s directive will face legal or congressional challenges. While the executive branch has authority over currency production through the Treasury Department and the U.S. Mint, major changes to coinage policies have historically required congressional approval.

Some lawmakers may push back on the decision, citing concerns over economic implications or the need for a more comprehensive review of U.S. currency policy.

For now, Trump’s order to stop minting pennies marks a significant step in his administration’s cost-cutting agenda.

Whether the move is purely symbolic or part of a larger strategy to modernize America’s currency system, it signals a shift away from traditional coin production in favor of more efficient government spending.