U.S. President Donald Trump has ordered the Treasury Department to halt production of new one-cent coins, citing rising production costs as the primary reason.
“For too long, the United States has been producing pennies that cost us more than 2 cents each. This is pointless!” Trump wrote on Truth Social.
“I have directed the U.S. Treasury Secretary to stop their production.”
Cost Concerns and Economic Justification
The decision follows reports that the U.S. Mint suffered an $85.3 million loss in fiscal 2024 from producing 3.2 billion pennies, each costing nearly 3.7 cents to manufacture—up from 3.1 cents the previous year.
Production of nickels has also resulted in losses, as each 5-cent coin costs around 14 cents to produce.
Influence of Elon Musk’s Efficiency Push
Though Trump had not mentioned eliminating the penny during his campaign, the idea was floated last month by Elon Musk’s self-styled “Ministry of Efficiency”, which advocates for reducing wasteful government spending.
Legal Uncertainty
It remains unclear whether Trump has unilateral authority to eliminate the penny, as such changes typically require congressional approval. However, his administration has been aggressively implementing changes through executive orders across various policy areas, including immigration, diversity regulations, and economic restructuring.
