Trump Orders Halt to Penny Production Amid Cost Concerns

In an effort to curb unnecessary government spending, President Donald Trump has announced that he has instructed Treasury Secretary Scott Bessent to halt the production of pennies.

In a statement shared via Truth Social, Trump criticized the ongoing minting of the one-cent coin, stating that it “literally costs us more than 2 cents.” He emphasized that stopping penny production would be a step toward eliminating waste from the federal budget.

“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump added.

Although it is uncertain whether Trump has the authority to implement this change, as the US Mint and Congress oversee coin production, his concerns about the cost of minting pennies are valid. According to the US Mint’s annual report, producing a single penny costs 3.69 cents in fiscal year 2024—more than double its face value. This marks the 19th consecutive year in which pennies have cost more to produce than they are worth, resulting in an ongoing financial loss.

The penny’s rising production costs and declining purchasing power have been a subject of debate for years. Critics argue that eliminating the penny could result in significant savings for taxpayers. Last year, the Mint issued over three billion pennies, at an overall loss of approximately $119 million. In comparison, countries such as Canada, Australia, and New Zealand have already phased out their smallest-denomination coins, citing similar concerns over production costs and inflation.

While some oppose the idea of eliminating the penny, including advocacy groups like Americans for Common Cents, who argue that doing so would lead to higher costs for other coins, the financial argument remains compelling. For example, the cost to produce a nickel is even higher, at 13.78 cents per coin. Supporters of the penny’s removal contend that its limited use in daily transactions—especially with the increasing shift toward digital payments—makes it an inefficient and outdated form of currency.

Trump’s initiative comes as part of his broader efforts to reduce wasteful government spending. The Department of Government Efficiency (DOGE), led by entrepreneur Elon Musk, has also highlighted the penny’s cost burden, with Musk’s department working to identify areas where savings can be made in the federal budget.

The New York Times, CNN, Axios, and FOX News contributed to this report.