The US last eliminated a low-value coin in 1857 when Congress discontinued the half-cent piece
President Donald Trump has ordered the Treasury to stop producing pennies, calling them “wasteful.” Announcing the decision after attending the Super Bowl, Trump said each penny costs over 2 cents to make.
His claim aligns with suggestions from Elon Musk’s Department of Government Efficiency (DOGE), which suggested eliminating the penny last month, highlighting potential cost savings.
DOGE claims each penny takes over 3 cents to make and cost taxpayers $179 million in 2023.
In 2024, the US Mint lost $85.3 million in producing nearly 3.2 billion pennies, costing around 3.7 cents each.
The Mint also reports that each penny costs nearly four cents to produce, while a nickel costs almost 14 cents per coin.
A push for cost-cutting
President Trump’s administration is focused on reducing government waste, targeting $2 trillion in savings.
Can Trump stop the penny?
Congress oversees coin production, so Trump may lack the authority to eliminate the penny without legislative approval. Some experts believe the Treasury Secretary could stop production without new legislation.
Past efforts to end penny production failed due to opposition from the zinc and coin manufacturing industries.
The US last eliminated a low-value coin in 1857 when Congress discontinued the half-cent piece.
The long debate continues
Supporters argue that eliminating pennies saves money, reduces environmental impact, and simplifies transactions. Critics worry about rounding costs and sentimental value.
Many countries, including Canada, New Zealand and Australia, have successfully phased out low-value coins without economic disruptions. Canada stopped minting its penny in 2012.