(LOOTPRESS) – In a recent move to reduce government spending, President Donald Trump announced on Sunday that he has directed Treasury Secretary Scott Bessent to halt the production of new pennies. Citing the rising costs associated with minting the one-cent coin, Trump labeled the practice as wastefull.
For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! Trump wrote on his social media platform, Truth Social. I have instructed my Secretary of the US Treasury to stop producing new pennies.
The decision comes amid broader efforts by the administration to identify and eliminate unnecessary expenditures. The Department of Government Efficiency (DOGE), led by Elon Musk, recently highlighted that producing the penny costs American taxpayers tens of millions of dollars annually. According to the U.S. Mint, each penny cost 3.69 cents to produce in fiscal year 2024, resulting in a loss of $119 million.
The penny has been a staple of U.S. currency since its first issuance in 1793. However, with production costs exceeding its face value and diminishing purchasing power due to inflation, debates have intensified over its relevance. Other countries, such as Canada, ceased production of their one-cent coins in 2012.
While the President’s directive marks a significant shift in U.S. currency policy, the cessation of penny production will require Congressional approval. The administration’s move has already sparked discussions about the future of low-denomination coins and the potential implications for cash transactions.
As the nation awaits further developments, businesses and consumers alike are considering the potential impacts of this change on everyday transactions and pricing structures.
