U.S. President Donald Trump announced on Sunday that he has directed the Treasury Department to stop producing penny coins, citing excessive production costs.
“For far too long, the United States has minted pennies that cost more than 2 cents each. This is wasteful!” Trump stated on his Truth Social platform. He emphasized that eliminating pennies aligns with his administration’s efforts to cut unnecessary government spending.
The decision follows recommendations from the Department of Government Efficiency (DOGE), a cost-cutting initiative led by billionaire Elon Musk. In January, DOGE highlighted the high production costs of pennies in a post on X.
Although previous legislative attempts to phase out the penny have failed, Treasury Secretary Scott Bessent may have the authority to halt production without congressional approval, according to economics professor Robert Triest of Northeastern University. If the penny is discontinued, prices would likely be rounded to the nearest five cents.
Canada made a similar move in 2012, citing rising production costs and declining purchasing power.
Trump has prioritized reducing federal spending in his second administration, with Musk’s DOGE team spearheading investigations into government inefficiencies. However, some of these budget-cutting measures—such as reductions at the U.S. Agency for International Development—have faced legal challenges from Democrats and labor unions.
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