Trump orders treasury to halt penny production, citing wasteful costs

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President Donald Trump has directed the U.S. Treasury to stop minting new pennies, arguing that the cost of producing the one-cent coin far outweighs its value.

“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote on his Truth Social site Sunday night. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”

The decision marks another sweeping move by Trump’s new administration, which has been enacting rapid changes through executive orders and proclamations on issues ranging from immigration to government efficiency. The elimination of the penny had not been a campaign issue, but last month, Elon Musk’s so-called Department of Government Efficiency raised concerns over its cost in a post on X.

The U.S. Mint reported an $85.3 million loss in the 2024 fiscal year from producing nearly 3.2 billion pennies, with each one costing $0.037—up from $0.031 the year before. The nickel is also a money-loser, with each five-cent coin costing nearly $0.14 to produce.

It remains unclear whether Trump has the authority to unilaterally eliminate the penny, as currency specifications, including coin size and metal content, are dictated by Congress. However, Robert K. Triest, an economics professor at Northeastern University, suggested there may be some flexibility. “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,” he said last month.

Lawmakers have repeatedly introduced legislation aimed at discontinuing the penny, with proposals to suspend production, eliminate it from circulation, or require rounding prices to the nearest five cents. Supporters argue that eliminating the coin would save costs, speed up transactions, and align the U.S. with other countries that have already phased out their smallest denominations. Canada stopped minting its penny in 2012, and the U.S. previously eliminated its half-cent coin in 1857.

Trump’s administration has made aggressive cost-cutting a priority, with Musk leading efforts to slash federal spending by $2 trillion. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump wrote.

He posted the message while departing New Orleans after watching the first half of the Super Bowl.