U.S. President Donald Trump has directed the Treasury Department to halt the production of penny coins, citing wasteful government spending.
In a statement posted on Truth Social on Sunday, Trump criticized the cost of minting pennies, stating:
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!”
He added, “I have instructed my Secretary of the U.S. Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The decision aligns with efforts by the Department of Government Efficiency (DOGE), a budget-slashing initiative led by Elon Musk to reduce federal expenses. In January, DOGE flagged the high production cost of pennies as
unnecessary government waste.
The debate over eliminating pennies is not new, as previous congressional bills have attempted but failed to phase them out. According to economist Robert Triest of Northeastern University, the Treasury Secretary may have
the power to halt new penny production without congressional approval.
If pennies are discontinued, prices would likely be rounded to the nearest five cents, similar to Canada’s move in 2012, when it stopped producing pennies due to rising costs and inflation.
Trump has made federal budget cuts a key part of his new administration. However, some of these efforts—such as reducing the U.S. Agency for International Development (USAID) workforce—have faced legal challenges from
Democrats and labor unions.
The fate of the penny elimination order now depends on how lawmakers and federal agencies respond.
