In a significant move aimed at reducing government expenditure, President Trump has instructed Treasury Secretary Scott Bessent to halt the production of pennies. This directive stems from concerns regarding the economic inefficiency associated with penny minting, as the cost of producing each penny currently exceeds its face value. Reports indicate that it costs approximately 3.7 cents to manufacture a single penny, resulting in substantial financial losses for the U.S. Mint, which reported an $85.3 million deficit in fiscal year 2024 alone . Such figures underscore the urgency of reevaluating coin production practices within the context of broader fiscal responsibility.
On Sunday night, Mr. Trump said he had ordered the Treasury secretary, Scott Bessent, to stop producing new pennies, a move that he said would help reduce unnecessary government spending.
“Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” he said in a post on Truth Social, adding that pennies “literally cost us more than 2 cents.”
It is unclear whether Mr. Trump has the power to do this. It is Congress, not the Treasury or the Federal Reserve, that authorizes the manufacture of the nation’s coins, according to the U.S. Mint.
A debate has been rumbling for years over whether the penny should be dropped from the line-up of American currency. "Let's Drop Pennies, and Nickels Too While We're At It," argued a 2013 commentary by economist Henry Aaron writing for the left-leaning Brookings Institution publication.
This initiative reflects ongoing discussions about the practicality and relevance of retaining low-denomination coins in circulation. Various stakeholders have voiced their support for eliminating pennies altogether, arguing that they contribute little to everyday transactions while creating logistical challenges related to their handling and storage . The public sentiment appears increasingly aligned with this perspective; many consumers find themselves inundated with unspent pennies that accumulate without serving any significant purpose in daily commerce.
While President Trump's directive could lead to immediate changes in penny production, it is important to note that any comprehensive elimination of the coin would require congressional approval . Thus far, such legislative measures have faced obstacles due to differing opinions on currency reform among lawmakers. Nevertheless, Trump's action signals a potential shift towards modernizing U.S. currency practices and addressing inefficiencies within federal operations.
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