President Donald Trump has ordered the Treasury Department to stop minting new pennies, citing the high cost of production as wasteful government spending as part of the administration's broader effort to reduce federal expenditure. Each penny costs approximately 3.69 cents to produce. The US made nearly 3.2 billion pennies in FY2024, costing taxpayers $85.3M, excluding the value of the pennies themselves.
It remains uncertain whether Trump can unilaterally halt penny production or if congressional legislation is required. Congress has constitutional authority over coinage and currency regulation, though federal law allows the Treasury Secretary some discretion in minting coins.
Proponents say discontinuing the penny could save millions annually and reduce environmental waste, while critics warn of potential economic disruptions, such as price rounding and consumer losses. The nickel also costs more to produce than its value, costing nearly 14 cents to produce per coin—a loss of $17.7M last year.
See the history of the penny here and check out our overview of US currency.
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