The humble penny might soon become a relic of the past. President Donald Trump has ordered the U.S. Treasury Department to halt the production of new pennies, calling it a wasteful expense.
His decision has ignited a nationwide debate about its economic and practical impact.
Why Is the Penny Being Eliminated?
In a fiery Truth Social post, Trump declared:
“For far too long, the United States has minted pennies that cost us more than 2 cents each. This is so wasteful! I have instructed my Secretary of the Treasury to stop producing new pennies.”
His claim isn’t baseless. The U.S. Mint reported that in 2024, it cost 3.7 cents to produce a single penny, leading to a staggering $85.3 million in losses.
With pennies made mostly of zinc and a thin layer of copper, the rising costs of raw materials have only worsened the problem.
Can Trump Really Stop Penny Production?
While the president has significant executive power, currency production falls under Congress’s jurisdiction. Typically, a change of this magnitude requires Congressional approval.
However, some financial experts argue that the Treasury Secretary might have the authority to halt penny production without immediate legislative action.
What Happens If the Penny Disappears?
If the U.S. stops minting new pennies, here’s what could change:
- Pennies will still circulate, but their numbers will gradually decline.
- Retail prices may round up or down to the nearest five cents, similar to Canada’s system after it eliminated the penny in 2012.
- Businesses and banks will adapt their policies over time, potentially phasing out pennies altogether.
A Step Toward Cost Cutting
Trump’s directive aligns with his broader effort to eliminate government waste.
Elon Musk, who now leads the Department of Government Efficiency, has supported the move, citing the $179 million taxpayer cost associated with pennies in 2023 alone.
According to the administration, removing the penny is just one step toward streamlining federal spending.
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