U.S. President Donald Trump announced Sunday that he had directed the U.S. Treasury to cease production of pennies, calling it a move to reduce government spending.
“For too long, the U.S. has minted pennies that cost more than 2 cents to make. This is pure waste!” Trump wrote on his Truth Social platform. “I’ve instructed my Secretary of the Treasury to stop producing new pennies. Let’s eliminate waste, even if it’s just a penny at a time.”
The push to eliminate the penny comes amid the efforts of the Department of Government Efficiency (DOGE), an initiative led by billionaire Elon Musk aimed at cutting federal spending. The department had previously highlighted the excessive cost of penny production in a post on X (formerly Twitter) in January.
Despite repeated discussions in Congress about the rising cost of producing pennies, no legislation has yet passed. Trump’s directive could require congressional approval, though some experts, including Northeastern University economics professor Robert Triest, suggest Treasury Secretary Scott Bessent may have the authority to halt penny production without it. Triest also noted that if pennies were removed, prices would likely be rounded to the nearest five cents.
Canada made a similar move in 2012, eliminating its penny due to production costs exceeding its face value.
Trump’s focus on slashing federal spending, which includes high-profile budget cuts and efficiency initiatives like DOGE, has sparked debate over the legality of certain efforts. Some of these moves, such as reducing staff at the U.S. Agency for International Development, have faced legal challenges from Democrats and labor unions.
AFP
