President Trump Orders Treasury Department to Halt Penny Minting Amid Cost Concerns
WASHINGTON, D.C. – President Donald Trump has taken a bold step towards cost-saving measures by directing the Treasury Department to stop minting new pennies. In a post on his Truth Social platform, Trump highlighted the high production costs of the one-cent coin, which he deemed “wasteful.”
Trump’s Executive Order on Penny Production
President Trump wrote, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies.”
This move comes as part of Trump’s rapid-fire initiative to enact substantial changes across various domains—from immigration to naming conventions—using executive orders and proclamations.
The Background Behind the Decision
Interestingly, Trump did not mention his intention to phase out the penny during his campaign. However, a post by Elon Musk’s Department of Government Efficiency raised the issue on social media, emphasizing the inefficiencies involved in minting pennies.
Financial Impact of Penny Minting
The U.S. Mint reported a $85.3 million loss in the fiscal year ending September 2024 due to the minting of nearly 3.2 billion pennies. Each penny costs around $0.037 to produce, up from $0.031 the previous year.
The mint also incurs losses on nickels, with each $0.05 coin costing nearly $0.14 to manufacture.
Legality and Future of Penny Production
However, the question remains whether Trump has the authority to unilaterally halt penny production. According to established protocol, currency specifications, including coin sizes and materials, are typically determined by Congress.
Economics professor Robert K. Triest from Northeastern University suggests there could be some degree of flexibility. He proposes that while an act of Congress would ideally be necessary to formally discontinue the penny, the Treasury Secretary might have the authority to halt its production.
Congressional Efforts to Eliminate or Restructure Penny Usage
Historically, Congress has repeatedly introduced legislation aimed at eliminating or reconfiguring the use of pennies. These proposals have ranged from suspending production temporarily to rounding prices to the nearest five cents.
Global Trends in Eliminating Low-Value Coins
Proponents of eliminating the penny cite several benefits, including cost savings, faster checkout processes, and the precedent set by other nations. Canada, for example, ceased minting pennies in 2012.
The United States has a precedent for discontinuing its least valuable coin, having phased out the half-cent coin in 1857.
Context in Trump’s Overall Cost-Saving Agenda
Trump’s administration is focused on reducing federal spending, with Musk, in his role as Efficiency czar, aiming to cut a potential $2 trillion from the budget. As part of this drive, Musk targets entire agencies and large portions of the federal workforce.
In his Truth Social post, Trump humorously stated, “Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”
The post was made as Trump prepared to return from attending the first half of the Super Bowl in New Orleans.
Conclusion
The decision to halt penny production represents a significant move in Trump’s efforts to streamline U.S. operations and reduce expenses. While the legality of his executive action remains uncertain, it opens up a debate on the role and efficiency of low-value coins in the U.S. economy.
As the proposal advances, it may spur further discussions on monetary policies and the future of small denomination currency in the United States.
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