Trump Orders Halt to Penny Production Due to High Costs

According to PANews, U.S. President Donald Trump has directed the Treasury Department to cease the minting of new one-cent coins, citing their production cost as exceeding their face value, leading to financial waste. In a post on Truth Social, Trump stated, "For too long, the U.S. has been minting pennies that cost over 2 cents each, which is wasteful!" Data from the U.S. Mint reveals that 3.2 billion pennies were produced in the 2024 fiscal year, with a total cost of $85.3 million, making the cost per penny approximately $0.037, an increase from the previous year. Similarly, the five-cent coin (nickel) is also produced at a loss, with each costing nearly $0.14. Despite Trump's directive to halt production, there is uncertainty about his authority to make such a decision unilaterally. Congress holds the power over currency specifications, including the size and metal composition of coins. Economist Robert K. Triest suggests that while the Treasury Secretary might have the authority to pause the minting of new pennies, a complete discontinuation would require congressional legislation. Historically, Congress has proposed eliminating the penny multiple times to reduce costs, speed up transactions, and follow the example of countries like Canada, which stopped minting pennies in 2012. The U.S. previously abolished the half-cent coin in 1857.