Former President Donald Trump has announced that the U.S. Mint will stop producing pennies, calling them a waste of taxpayer money. Trump shared the decision on Truth Social, saying that making a single penny costs more than twice its actual value.
“For years, we’ve been spending over two cents to make a one-cent coin. This is a waste of resources!” Trump stated. “I have instructed my Treasury Secretary to stop minting new pennies. It’s time to cut unnecessary expenses, even if it’s just a penny at a time.”
Why Stop Making Pennies?
According to the U.S. Mint, the cost of making a penny has risen from 1.76 cents in 2020 to 3.69 cents in 2024. Producing a penny is even more expensive than printing a one-dollar bill, which costs about 3.2 cents per note. The Mint reported losing $85.3 million in 2024 due to the high cost of penny production.
Is It Legal to Eliminate the Penny?
It is unclear whether Trump has the authority to stop penny production without approval from Congress. Although the U.S. Mint operates under the Treasury Department, Congress typically has the power to decide which coins are made. However, legal expert Laurence Tribe believes that the U.S. Treasury Secretary does have the authority to stop making pennies if necessary.
The History of the Penny
The penny has been in circulation for 233 years, with President Abraham Lincoln’s portrait appearing on it for 116 years. Over time, the U.S. has retired other coins, such as the half-cent, two-cent, and twenty-cent pieces, mainly because they became too costly or were no longer widely used.
Is This a Good Idea?
Not everyone supports eliminating the penny. Mark Weller, director of Americans for Common Cents, believes it could hurt consumers and the economy. He argues that removing the penny could increase costs, as businesses may round prices up instead of down.
Additionally, Weller points out that the cost of producing nickels is even higher—nearly 14 cents per coin. If more nickels are needed to replace pennies, the U.S. Mint could face even greater financial losses.
What Happens Next?
Other countries, such as Canada, have already stopped making pennies. If the U.S. follows suit, the penny could become a collector’s item. While the future of the penny is uncertain, phrases like “a lucky penny” and “a penny saved is a penny earned” will likely remain a part of American culture.
