President Donald Trump has proposed a significant change to U.S. currency production by calling for an end to the minting of the penny. This initiative, announced on Sunday, is driven by concerns over the high cost of producing the one-cent coin, which Trump claims costs taxpayers more than its face value to produce.
In a post on Truth Social, Trump stated, "For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies." His comments come amid broader discussions about government spending and efficiency, particularly in light of recent efforts led by Elon Musk, who heads the newly formed Department of Government Efficiency (DOGE).
According to a 2024 U.S. Mint report, the actual cost to mint a penny is approximately 3.69 cents, a figure that has fueled the debate over its continued production. The penny is primarily made of zinc and coated with copper, and critics argue that maintaining its production is financially irresponsible. Proponents of the penny, however, argue that the focus should shift to the nickel, which costs around 13.8 cents to mint. Mark Weller, Executive Director of Americans for Common Cents, emphasized that efforts should be directed at reducing the cost of minting nickels rather than eliminating the penny altogether.
While Trump’s directive signals a potential shift in U.S. currency policy, the process of discontinuing the penny is not straightforward. Experts suggest that Congress would likely need to be involved in any legislative changes to halt penny production. Historically, attempts to eliminate the penny have faced significant resistance in Congress.
In addition to the penny proposal, Trump’s administration has been scrutinizing various government expenditures. The DOGE initiative aims to identify wasteful spending and streamline government operations, which has already led to substantial cuts in agencies like the U.S. Agency for International Development (USAID).
The discussion surrounding the penny reflects broader concerns about government efficiency and fiscal responsibility. As Trump’s administration moves forward with these proposals, it remains to be seen how Congress will respond and whether the penny will indeed be phased out. Bipartisan interest in modifying coin production suggests that there may be room for compromise on this issue, but the path forward will likely involve complex negotiations and legislative action.