President Donald Trump has announced a significant decision to stop the production of pennies in the United States. Citing the excessive cost of producing the one-cent coin, Trump instructed Treasury Secretary Scott Bessent to cease minting new pennies. The President emphasized the wastefulness of minting pennies that cost more than their face value, stating that this practice needed to be eliminated to save taxpayer money.
This move comes after years of debate and criticism surrounding the penny. Last year, the US Mint reported circulating around 4.1 billion pennies, with the cost of producing and distributing each penny amounting to 3.7 cents in fiscal year 2024. The rising costs of metals like zinc and copper have contributed to the increasing expense of manufacturing the coin.
The discussion about abolishing the penny gained momentum following a post by Elon Musk's Department of Government Efficiency highlighting the high production costs of the penny. Various experts and commentators have argued for the elimination of the penny, with some even suggesting discontinuing the nickel to further streamline the country's currency system.
While the decision to halt penny production may face mixed reactions, President Trump's directive aims to address the financial inefficiencies associated with minting low-value coins. The move reflects a broader effort to optimize government spending and enhance fiscal responsibility.
