President Donald Trump has ordered the U.S. Treasury to halt penny production, calling the practice wasteful and unnecessary. “For far too long, the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote on Truth Social. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The U.S. Mint reported an $85.3 million loss in the 2024 fiscal year from producing nearly 3.2 billion pennies, each costing nearly $0.037 to mint. That marked the 19th consecutive year of negative seigniorage for the penny, a term used when a coin costs more to produce than its face value. The agency also loses money on nickels, which cost nearly $0.14 each to produce.
Trump announced the move as he left the Super Bowl in New Orleans, reinforcing his administration’s focus on cutting costs. The Department of Government Efficiency has been vocal about eliminating waste. They’ve pointed out that penny production cost American taxpayers over $179 million in fiscal year 2023 alone.
It remains unclear whether Trump has the authority to eliminate the penny outright. Congress determines currency specifications, including the size and metal content of coins. Some economists, including Robert K. Triest of Northeastern University, suggest that the Treasury Department may have room to act without congressional approval.
Lawmakers have previously introduced bills to halt penny production, remove it from circulation, or implement price rounding to the nearest five cents. Supporters argue that eliminating the penny could save money and speed up cash transactions. Critics worry about a “rounding tax,” where consumers might lose money if businesses round prices up.
The debate over the penny isn’t new. Former President Barack Obama supported its elimination in a 2013 interview, stating that while it wouldn’t generate massive savings, spending money on something people barely use was unnecessary. Canada stopped minting its one-cent coin in 2012, and the U.S. previously discontinued its half-cent piece in 1857.
Whether the penny’s days are truly numbered depends on Congress. While Trump’s directive signals a push for change, legislative action will ultimately decide the fate of the nation’s smallest coin.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.