President Donald Trump announced that he has directed the U.S. Treasury Department to cease the production of new pennies, citing the high cost of minting the one-cent coin. In a post on his Truth Social platform, Trump stated, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies.”
The U.S. Mint’s 2024 annual report indicates that it costs approximately 3.69 cents to produce a single penny, resulting in a loss of about $85.3 million for the fiscal year. This marks the 19th consecutive year that the production cost of the penny has exceeded its face value.
The authority to discontinue coin production typically resides with Congress, and it remains unclear whether the President can unilaterally halt the minting of pennies. In 2013, President Obama considered ending penny production but noted that it would require legislation.
The debate over the penny’s future has been ongoing, with critics arguing that its low purchasing power and the shift towards cashless transactions make it obsolete. Supporters, however, contend that the penny plays a role in charitable donations and that eliminating it could lead to price rounding that might disadvantage consumers.
Several countries, including Canada, Australia, and New Zealand, have already phased out their lowest-denomination coins due to similar concerns over production costs and practicality.
