Trump Orders Cessation of Penny Coin Production: A Costly Waste

President Trump Takes Action to End the Production of the U.S. 1-Cent Coin, Citing Financial Inefficiency

On February 9, 2025, U.S. President Donald Trump announced through social media that he had issued an order to halt the production of the 1-cent coin, commonly known as the penny. Trump's decision highlights the growing concern about the cost of minting pennies, which has become a symbol of governmental waste. "For far too long, America has spent more than 2 cents to make a penny, and this is truly a waste," Trump stated. He emphasized that, even if each penny may only seem like a small amount, the overall financial strain on the U.S. budget from producing these coins is substantial. His goal, he explained, is to eliminate such waste and streamline the country's financial resources.

Trump's push to end penny production aligns with previous statements made by Elon Musk, CEO of Tesla, who raised similar concerns on social media in January 2025. The issue has gained traction among many political figures, with growing debates on whether the production of low-value coins should be discontinued altogether.

The U.S. Mint's 2024 fiscal year report revealed a significant loss of $85.3 million from producing pennies, with each penny costing 3.7 cents to mint, up from 3.1 cents the previous year. This increase in production cost underscores the inefficiency of continuing to manufacture such low-value currency. According to the Congressional Research Service, there have been multiple proposals in recent years to either temporarily halt or completely cease the production and circulation of pennies.

Advocates for eliminating the penny argue that it no longer serves its intended purpose, given its minimal purchasing power. They point to examples from other countries, such as Canada, which discontinued their 1-cent coin in 2013. At the time, the production cost of a Canadian penny exceeded its face value by 0.6 cents, making it financially unviable. However, Canada maintained the concept of the 1-cent value in its financial transactions, opting to round prices to the nearest 5-cent increment instead of physically circulating the coins. For example, a product priced at $20.11 would be rounded to $20.10 when paid with cash but would remain unchanged at $20.11 when paid by card.

The debate over the penny reflects broader concerns about the rising costs of minting low-value coins, and experts continue to discuss the practicality and potential benefits of eliminating them from circulation.