Goodbye, penny! Trump directs the US to eliminate the 1-cent coin following years of criticism.

RICHMOND, Va. — The humble penny, often overlooked and found in change jars and car cupholders, may be on the verge of disappearing entirely.


President Donald Trump proclaimed on Sunday that he has instructed his administration to halt the production of the 1-cent coin, citing its long-diminished purchasing power.


Proponents of eliminating the penny point to its excessive production costs — approaching 4 cents per penny as reported by the U.S. Mint — and its waning practicality. Supporters of retaining the penny argue that it plays a role in charitable initiatives and is less expensive to produce compared to the nickel, which incurs nearly 14 cents to mint.


Trump’s unexpected directive comes after numerous unsuccessful attempts over the decades to phase out the penny.


“Only tradition explains our stubborn attachment to the penny. But sometimes traditions get ridiculous,” contended the Farmers’ Almanac in its 1989 edition.


The announcement raises certain questions regarding Trump’s authority.


Can Trump legally direct the Treasury to stop minting pennies without securing Congressional approval?


Absolutely, according to legal expert Laurence H. Tribe, a professor emeritus of constitutional law at Harvard University.


U.S. law permits the Treasury Secretary to mint and issue coins “in amounts the secretary decides are necessary to meet the needs of the United States.” If Secretary Scott Bessent concludes that the necessity for pennies is zero, he is acting within his legal rights, Tribe explained.


“Unlike a lot of what the new administration has been doing pursuant to the flood of executive orders since January 20, this action seems to me entirely lawful and fully constitutional,” Tribe remarked, referring to the administration’s vigorous use of executive orders on various issues since taking office.


While Congress has the power to set specifications for currency, including the size and metal content of coins, it could solidify Trump’s decision through legislation. However, past congressional initiatives to eliminate the penny have not succeeded.


Zinc, primarily used to create pennies, has garnered significant opposition from the American zinc industry against proposals to abolish the coin.


How many pennies are actually circulating?


This largely hinges on the definition of circulation.


According to the U.S. Mint, pennies rank as the most minted coins, with 3.2 billion produced last year, accounting for more than half of all new coins manufactured that year.


Jeff Gore, a professor at MIT and the founder of Citizens to Retire the Penny, states that coins are typically expected to remain in circulation for about 30 years, with the Mint producing approximately 250 billion pennies over the past 30 years.


However, he observes that since pennies are often disregarded, they are removed from active use much quicker than other coins.


“If pennies sit in a drawer for a decade, does that count as being in circulation?” Gore questions.


Will Americans miss the penny?


Examining the experiences of other nations suggests the answer is no.


Canada began its phase-out of the penny around twelve years ago, encouraging retailers to round prices to the nearest nickel for cash transactions while maintaining electronic purchases at their precise amounts. This initiative followed similar moves by New Zealand, Australia, the Netherlands, and other countries that have eliminated their smallest coins.


These countries did not experience regret after removing the penny or its equivalent.


What’s next following Trump’s announcement?


The President’s directive, delivered via social media as he was leaving New Orleans after watching part of the Super Bowl, reflects his administration’s ongoing efforts to trim government expenses.


“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump penned in his post, providing scant details about the future of currency without the penny.


Following Canada’s cessation of penny production, the country also began recycling them for their valuable copper and zinc, as noted in a report from the Canadian Mint in 2022.