Trump Says He Told Treasury To Stop Creating Pennies

President Donald Trump says he has instructed the Treasury Department to stop creating new pennies.

Key Takeaways

President Donald Trump says he directed the Treasury Department to halt minting new pennies due to high costs.
The U.S. Mint reported a substantial financial loss in the fiscal year 2024 from penny production.
The debate over penny production spans both economic and legislative dimensions.
Currency specifications rest upon congressional authority, posing challenges to Trump’s directive.

A Move to Stop Penny Production

President Donald Trump said on social media that he has instructed the Treasury Department to stop minting pennies. Announced via his Truth Social site, the decision highlights growing concerns about the economic impracticality of producing pennies. Each penny reportedly costs nearly $0.037 to produce, translating to a significant fiscal burden when multiplied by billions of coins.

According to reports, the minting of nearly 3.2 billion pennies resulted in an $85.3 million loss for the U.S. Mint in the 2024 fiscal year. Trump’s decision comes along with his broader agenda of evaluating and cutting governmental waste, with support from Elon Musk’s Department of Government Efficiency (DOGE).

NEW – Trump tells US Treasury to stop minting new pennies https://t.co/RSy4WMnP5r

— Insider Paper (@TheInsiderPaper) February 10, 2025

Legislative and Monetary Implications

The authority for eliminating pennies remains legally complex. While reports indicate that specifications regarding currency typically demand an act of Congress, it has also been suggested that the Secretary of the Treasury may have an avenue here.

“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,” Robert K. Triest of Northeastern University stated back in January.

Additionally, some advocates and lawmakers encourage penny elimination, stating potential savings and efficiency in commerce, aligning with international trends. Countries like Canada have already moved past using their smallest denomination coins.

Support and Opposition

Some supporters of eliminating pennies highlight taxpayer savings and environmental improvements. Democratic Colorado Gov. Jared Polis described eliminating the penny as beneficial financially and environmentally. However, there have also been arguments against the move, with some suggesting it could contribute to inflation by making customers pay rounded up prices.

A historical perspective shows the U.S.’s discontinuation of the half-cent coin in 1857. If Trump’s instruction progresses, it may reshape minor transactional practices, potentially necessitating prices to be rounded to the nearest five cents.