President Donald Trump has just ordered a bold move to stop minting new pennies. Why? The rising cost of producing these tiny coins. According to Trump, the U.S. Treasury is wasting money every time it creates a penny. It costs more than 2 cents to make each one!
Huge losses for the U.S. mint
The U.S. Mint isn’t doing well financially. In the 2024 fiscal year, it lost $85.3 million. Why? Because it minted nearly 3.2 billion pennies. Each penny cost almost 4 cents to produce. That’s up from 3.1 cents last year.
It’s not just pennies that are a problem. The nickel is also a money drain. Each nickel costs 14 cents to produce. This isn’t sustainable! The Mint is clearly losing money on these coins, and it’s becoming a major issue.
Trump wasted no time. He immediately directed the U.S. Treasury to stop minting pennies. The former president posted the announcement on his Truth Social platform. “This is so wasteful!” Trump declared. The cost of producing pennies is simply too high to ignore.
The penny problem
The penny has long been under fire. Many argue it’s outdated and too expensive to make. Some want to eliminate it entirely. Others suggest rounding prices to the nearest five cents. Many countries, like Canada, have already stopped producing their pennies.
Legal hurdles ahead?
Can Trump actually stop penny production? That’s unclear. Currency rules are typically set by Congress. However, experts believe the Treasury Secretary might have the power to halt penny production. According to Robert K. Triest, an economics professor, the process isn’t clear-cut, but it could be done.
Over the years, Congress has considered various bills to eliminate the penny. Some wanted to suspend production. Others wanted to end it completely. Some proposed rounding prices to avoid pennies. But so far, nothing has passed.
The penny’s high cost is not a unique problem to the U.S. Other countries have taken action. For example, Canada stopped producing pennies in 2012. Many say it’s time for the U.S. to follow suit.
Trump’s cost-cutting focus
Trump’s administration has made cutting costs a priority. With Elon Musk heading the task, the goal is clear: find $2 trillion in savings. Cutting unnecessary expenses, like penny production, is a step in that direction.
A history of coin eliminations
The U.S. has eliminated coins before. In 1857, Congress stopped minting the half-cent coin. It wasn’t the first time the government trimmed the coinage list, and it likely won’t be the last.
Trump is determined to cut 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,” he wrote. This isn’t just about pennies—it’s about taking a sharp look at government spending across the board.
As Trump left New Orleans after watching the Super Bowl, he made sure his message was clear. Ending penny production is just the beginning. Trump and his team are pushing for more changes. How far will they go? Time will tell.
