Trump moves to end penny production

US President Donald Trump announced plans to halt the production of the one-cent coins, also known as pennies, calling the coin an unnecessary government expense.

In a post on Truth Social Sunday night, Trump said he had instructed Treasury Secretary Scott Bessent to stop minting new pennies.

"Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time," he wrote, adding that the coin "literally costs us more than 2 cents."

The legality of Trump’s directive remains uncertain, as the US Mint states that Congress—not the Treasury or Federal Reserve—has the authority to determine which coins are produced.

However, his argument about the penny’s cost holds merit. According to the US Mint’s annual report, it cost 3.69 cents to produce and distribute a single penny last year, meaning each one generated a loss of 2.69 cents. With over three billion pennies minted in 2023, the total loss amounted to approximately USD 85.3 million.

- Resistance to change -

Despite the financial logic behind eliminating pennies, the proposal faces opposition. Advocacy group Americans for Common Cents argues that removing the penny would not lead to significant savings, as overhead costs at the Mint would still need to be covered by other coins, potentially increasing their production costs.

Additionally, eliminating pennies could boost demand for nickels, which are even more expensive to produce—each one costs 13.78 cents to make and distribute. Some critics also warn that rounding prices could function as a hidden sales tax on consumers, as many goods are priced at 99 cents.

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However, much of the resistance appears to stem from nostalgia rather than practicality. "People will put it in a paperweight or something; there’ll probably be some hoarding," Stoeckel said. "It’s just a memento kind of thing. There’s no significance."