President Trump’s directive to halt penny production sparks questions on the future of small change and fiscal responsibility.
Key Takeaways
- Trump orders Treasury to stop minting pennies, citing wasteful production costs
- Each penny costs 3.69 cents to produce, resulting in an $85.3 million loss in 2024
- The decision’s legality is questioned, as currency specifications are traditionally set by Congress
- Supporters argue for cost savings and efficiency, while critics worry about economic impacts
- Other countries have successfully phased out low-denomination coins, providing precedent
Trump Takes Aim at the Penny
In a bold move that has sparked national debate, President Donald Trump has directed the U.S. Treasury to cease production of the penny. The decision, announced via Trump’s Truth Social platform, aims to address what the administration views as wasteful government spending. Trump’s directive comes after the Department of Government Efficiency (DOGE), led by Elon Musk, highlighted the significant costs associated with penny production.
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 penny costs approximately 3.69 cents to manufacture and distribute, resulting in a loss of 2.69 cents per coin. This economic inefficiency has long been a point of contention among 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
Legal and Economic Implications
While Trump’s decision has garnered support from some quarters, including Democratic Colorado Governor Jared Polis, questions remain about the president’s authority to unilaterally eliminate a denomination of U.S. currency. Traditionally, the power to authorize coin production lies with Congress, not the executive branch or the Federal Reserve.
“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. “I have instructed my Secretary of the U.S. Treasury to stop producing new pennies.”
The move has reignited discussions about the practicality of maintaining low-denomination coins in an increasingly digital economy. Advocates argue that discontinuing the penny would not only reduce costs but also expedite checkout times and align with global trends. Several countries, including Canada, Ireland, and the Netherlands, have already phased out their smallest denomination coins without significant economic disruption.
Historical Context and Future Outlook
This isn’t the first time the U.S. has considered eliminating a low-value coin. In 1857, the half-cent coin was discontinued when its purchasing power became negligible. Now, with the penny costing more to produce than its face value, many argue that its time has come as well.
The fate of Trump’s directive now hangs in the balance, subject to potential legal challenges and congressional intervention. As the debate unfolds, Americans are left to ponder the value of their smallest coin and the broader implications for the nation’s fiscal policy.
