President Donald Trump announced on Sunday that he has directed Treasury Secretary Scott Bessent to cease the production of pennies in the United States. The decision was made in response to the excessive cost of producing the one-cent coin.
In a social media post following his return from the Super Bowl, President Trump expressed his frustration with the wasteful spending associated with minting pennies. He highlighted that the production cost of a single penny exceeds its face value, with each coin costing more than 2 cents to produce.
According to reports from the US Mint, approximately 4.1 billion pennies were circulated in 2023. The Mint's annual report for fiscal year 2024 revealed that the production and distribution cost of a penny has risen to about 3.7 cents, marking a significant increase of over 20% from the previous year.
The escalating expenses are attributed to the rising costs of metals such as zinc and copper, which are essential components in the manufacturing of pennies. President Trump emphasized the need to eliminate unnecessary expenditures from the national budget, even if it means addressing them one penny at a time.
