US President Donald Trump has ordered Treasury Secretary Scott Bessent to cease the production of one-cent coins, commonly known as pennies. The announcement, made on Trump’s Truth Social account, frames the decision as a cost-cutting measure aimed at reducing government waste.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump posted, reinforcing his administration’s focus on fiscal efficiency.
The decision follows a recent post on X by Elon Musk’s unofficial Department of Government Efficiency (Doge), which highlighted the high cost of producing pennies. The debate over the penny’s cost and usefulness has been ongoing in the US for years.
“This is so wasteful,” Trump stated. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
According to the US Mint’s 2024 annual report, the cost to manufacture and distribute a single penny is 3.69 cents—far exceeding its face value.
Efforts to eliminate the penny have been proposed by government officials and members of Congress in the past but have consistently met resistance. While critics argue that the zinc and copper coin is an unnecessary expense and a drain on resources, proponents claim that pennies help keep prices stable and support charitable fundraising efforts.
Several other countries have already discontinued similar low-value coins. Canada phased out its one-cent coin in 2012, citing excessive minting costs and declining purchasing power. The UK, facing a reduced demand for physical currency, did not mint any new coins in 2024, though it has stopped short of eliminating 1p and 2p coins entirely. The British Treasury has noted that while these coins remain in circulation, their production has been intermittent, with 2p and 20p coins going years without being minted.
With cash usage declining globally, the fate of the US penny remains uncertain. However, Trump’s directive signals a significant step toward phasing it out, aligning the US with other nations that have already moved away from low-denomination coins.
