Trump orders treasury to stop minting pennies, citing rising costs

The idea of eliminating the penny had not been a part of Trump’s campaign promises, but it recently gained attention after Elon Musk’s Department of Government Efficiency raised the issue in a post on X, pointing out the rising costs.

To be clear, what the @DOGE team and @USTreasury have jointly agreed makes sense is the following:

– Require that all outgoing government payments have a payment categorization code, which is necessary in order to pass financial audits. This is frequently left blank, making…

— Elon Musk (@elonmusk) February 8, 2025

According to the US Mint, the government lost $85.3 million in the 2024 fiscal year on nearly 3.2 billion pennies produced, with each coin costing around 3.7 cents to make—up from 3.1 cents the previous year. CNN reported that the increasing cost of metals like zinc and copper has contributed to these higher expenses.

While Trump has announced the end of penny production, it’s unclear whether he has the legal authority to do so without Congress. US laws state that coin specifications, including size and metal content, are determined by Congress.

However, Robert K. Triest, an economics professor at Northeastern University, noted, “The process of discontinuing the penny in the US is a little unclear. It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop the minting of new pennies”, according to a report by Associated Press (AP).

Over the years, lawmakers have introduced various proposals to eliminate the penny or reduce its production. Some suggested rounding prices to the nearest five cents to make the transition smoother. Supporters of getting rid of the coin argue it would save money, speed up transactions, and follow the lead of countries like Canada, which stopped minting its penny in 2012.

A New York Times Magazine article last year described the penny as “a symbol of deeper rot,” highlighting how long the need to abolish it has been recognised without action. Additionally, a 2013 commentary from the Brookings Institution even suggested discontinuing both the penny and the nickel, arguing, “Perhaps, the problem is not that advocates have been too bold, but rather that they have been too timid — let’s drop not just pennies, but nickels too.”

Trump’s announcement came as he was leaving New Orleans after watching the first half of the Super Bowl. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” he wrote.

(with inputs from agencies)