Washington: In a move to reduce government spending, Trump halts penny production, ordering the U.S. Treasury to stop minting pennies. He announced the decision on Truth Social, calling it a step toward eliminating waste in the national budget.
Making Pennies Costs More Than Their Value
Trump’s directive follows growing concerns over the cost of producing pennies. According to the U.S. Mint’s 2024 annual report, making and distributing a single penny costs 3.69 cents—far more than its face value. Billionaire entrepreneur Elon Musk had also criticized penny production, calling it inefficient in a post on X last month.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump stated in his announcement. He emphasized that eliminating penny production is a smart financial decision.
A Long-Running Debate Over the Penny
The future of the penny has been debated for years. Supporters argue that the coin keeps prices stable and helps charitable donations. However, critics see it as an unnecessary expense, citing the high cost of production and the declining use of cash in everyday transactions.
Several attempts to phase out the penny have been made by lawmakers in the past, but none have succeeded. Trump’s latest move could change that.
Other Countries Have Ditched Small Coins
The U.S. is not the first country to consider eliminating low-value coins. In 2012, Canada stopped producing its one-cent coin due to high costs and low purchasing power. The UK also reduced coin production, skipping new 1p and 2p coins in 2024, as more consumers shift to digital payments.
What’s Next for the Penny?
Trump’s directive could lead to major changes in U.S. currency. While no timeline has been announced, the Treasury Department is expected to provide details on how the transition will be handled. Businesses and consumers will also need to adapt to a future without new pennies in circulation.
As digital payments continue to grow, the debate over the necessity of physical cash remains ongoing. Whether Trump’s decision marks the end of the penny or sparks further discussion remains to be seen.
