Washington DC: President Donald Trump announced on February 9, that he has directed the US Treasury Department to cease the production of new pennies, citing escalating production costs. This decision is part of his administration’s broader strategy to curtail government spending and is emblematic of its rapid reforms through executive actions. These reforms span various areas, including immigration and diversity policies.
In a recent post on Truth, a social media platform, Trump announced his directive to cease the minting of new pennies, stating: “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. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time.”
Interest in the penny’s future surged after Elon Musk’s Department of Government Efficiency (DOGE) highlighted its production costs on X last month.
The US Mint revealed a substantial $85.3 million loss in the 2024 fiscal year, stemming from the production of nearly 3.2 billion pennies, with the cost per coin now at 3.7 cents, up from 3.1 cents the previous year. Other coins, like the nickel, are also unprofitable, costing nearly 14 cents to produce.
Legal experts are exploring whether Trump can eliminate the penny unilaterally, as currency specifications fall under Congressional jurisdiction. However, some legal scholars believe executive action might be feasible. Historically, Congress has considered various proposals regarding the penny, including complete elimination and rounding pricing to the nearest five cents. Advocates of removing the penny argue it would lead to significant cost savings and enhance checkout efficiency, drawing parallels to Canada’s successful discontinuation of its penny in 2012.
Trump’s administration aims to uncover $2 trillion in federal savings, with an emphasis on identifying wasteful expenditures, famously stating, “Let’s remove the waste from our great nation’s budget, even if it’s just a penny at a time.”
Netizens React
Netizens have given their ‘2 cents’ on the complete halt of minting pennies in United States. While some are applauding the decision saying it was work due for years while some are asking answers for the pennies banked in swear jars. Here are some reactions:
