US President Donald Trump announced on Sunday that he has directed the Treasury Department to stop minting penny coins, framing the move as part of his administration’s broader efforts to reduce government spending.
“For far too long, the United States has minted pennies that literally cost us more than 2 cents. This is so wasteful!” Trump wrote on his Truth Social platform. “I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The decision aligns with the recommendations of the Department of Government Efficiency (DOGE), a cost-cutting initiative led by billionaire entrepreneur Elon Musk, which has played a key role in reducing federal expenditures. In a post on X (formerly Twitter) in January, DOGE highlighted the high cost of penny production as an area for potential savings.
Debates over the cost-effectiveness of producing pennies are longstanding in the United States, with multiple bills introduced in Congress over the years to discontinue them—though none have passed.
While Trump’s directive could require legislative approval, Treasury Secretary Scott Bessent may have the authority to halt the minting of new pennies without Congressional action, according to Robert Triest, an economics professor at Northeastern University. If pennies are phased out, Triest noted that retail prices would likely be rounded to the nearest five cents.
Other countries have taken similar steps in the past. In 2012, Canada eliminated pennies from its coinage system, citing a production cost of 1.6 cents per coin and the diminishing purchasing power of the currency due to inflation.
Trump has made reducing federal spending a central focus of his administration, with Musk’s DOGE team actively scrutinizing government expenses. However, some of these cost-cutting measures—including efforts to downsize the US Agency for International Development (USAID)—have faced legal challenges from Democrats and labor unions, raising questions about the administration’s authority to make such unilateral budgetary changes.
The move to end penny production is expected to spark further debate, with supporters viewing it as a pragmatic fiscal decision and critics questioning the broader implications for consumers and businesses.
AFP
