President Trump orders halt to penny production, citing wasteful spending and inefficiency.
Top Takeaways
- Trump directs Treasury to stop minting pennies due to high production costs
- Each penny costs 3.69 cents to produce, resulting in significant annual losses
- The decision aims to cut government spending and modernize currency management
- Legal authority for this action is unclear, as currency specifications are determined by Congress
- Other countries have already phased out low-denomination coins, setting a precedent
Trump Takes Aim at the Penny
In a bold move to address government inefficiency, President Donald Trump has directed the U.S. Treasury Department to halt the production of new pennies. The decision, announced on Trump’s Truth Social platform, comes as part of a broader effort to cut government spending and modernize currency management.
The U.S. Mint reported a staggering loss of $85.3 million in the 2024 fiscal year from producing nearly 3.2 billion pennies, each costing about $0.037 to make. This discrepancy between production cost and face value has long been a point of contention for fiscal conservatives and efficiency advocates.
Breaking News: President Trump ordered the Treasury to stop minting pennies, saying the coins cost more to produce than their face value. https://t.co/nbUYA1aDL9
— The New York Times (@nytimes) February 10, 2025
Economic Implications and Support
The decision to stop minting pennies is not without precedent. Several countries, including Canada, Ireland, and the Netherlands, have already phased out their lowest denomination coins. Advocates argue that discontinuing the penny would not only reduce costs but also expedite checkout times and align with global trends in currency management.
“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump stated in his announcement.
Surprisingly, the move has garnered bipartisan support. Democratic Colorado Governor Jared Polis backed the decision, citing both financial and environmental benefits. “As well as saving taxpayers hundreds of millions of dollars, there are major environmental benefits to eliminating the penny. This is a great move,” Polis commented.
Legal Challenges and Congressional Authority
Despite the potential benefits, the legality of Trump’s directive remains in question. Experts suggest that discontinuing the penny might require an act of Congress, as currency specifications are traditionally determined by legislative action. The outcome of Trump’s order could hinge on potential legal challenges and congressional intervention.
The move is part of Trump’s broader agenda to streamline government operations and reduce wasteful spending. It follows recommendations from Elon Musk’s Department of Government Efficiency (DOGE), which highlighted the substantial costs associated with penny production.
Looking Ahead
As the nation grapples with this potential change to its currency, many are left wondering about the future of small transactions and the impact on businesses. While existing pennies will remain in circulation as legal tender, allowing for a gradual adjustment, the long-term effects on pricing and consumer behavior remain to be seen.
This decision marks a significant moment in U.S. fiscal policy and currency management. As the debate continues, Americans will be watching closely to see how this change unfolds and what it means for the future of their pocket change.
