Trump Orders Halts to Penny Production, Citing Wasteful Government Spending

U.S. President Donald Trump has ordered the Treasury Department to halt the production of the one-cent coin, commonly known as the penny. The decision comes amid concerns about the rising cost of minting the coin, which costs more to produce than its actual value.

Trump announced the directive via his social media platform, stating: “For far too long, the United States has minted pennies that literally cost us more than 2 cents to make. This is so wasteful! I have instructed my Secretary of the 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 aligns with Trump’s broader efforts to reduce government inefficiencies, following a series of executive orders targeting immigration, diversity policies, and even the name of the Gulf of Mexico.

The penny has been in circulation since 1793, with President Abraham Lincoln’s profile appearing on the coin since 1909. Made primarily of zinc and copper, it has long been the subject of debate over whether it remains a practical part of the U.S. currency system.

READ ALSO: Netanyahu Vows to Destroy Hamas Amid Ceasefire Deal

For years, economists and policymakers have questioned the necessity of the penny. In 2013, economist Henry Aaron advocated for the elimination of both pennies and nickels, arguing that they were nothing more than “monetary detritus” and that life would be simpler without them.

The U.S. Mint has been losing millions annually on penny production. In the 2024 fiscal year, the Mint reportedly lost $85.3 million producing nearly 3.2 billion pennies. Each penny cost $0.037 to produce—up from $0.031 the previous year. The nickel is also unprofitable, with each $0.05 coin costing nearly $0.14 to manufacture.

Elon Musk’s Department of Government Efficiency (DOGE) recently raised concerns over the ballooning production costs, further fueling discussions about discontinuing the penny.

The initiative was reportedly part of Trump’s election campaign, signaling his commitment to eliminating what he views as wasteful government spending.

READ ALSO: Iran Open to Talks with US But Not Under Pressure- Minister

Supporters of keeping the penny argue that it helps prevent rounding up consumer prices and serves as an important source of income for charities. However, for many Americans, the coin has lost its usefulness, often ending up forgotten in drawers, ashtrays, and piggy banks.

If the penny were to be removed from circulation, one proposed solution is to simply round all product prices to the nearest zero or five cents. This would streamline transactions and eliminate the inconvenience of handling pennies altogether.

Despite Trump’s executive order, the elimination of the penny is not solely up to the President. Currency specifications—including the size, design, and composition of U.S. coins—are dictated by Congress. This means that any permanent decision to discontinue the penny would require legislative approval.