Penny production on the chopping block amid government “cost-cutting efforts”

In a move aimed at cutting government waste, President Donald Trump has issued a number of directives in rapid succession. His latest is to the U.S. Treasury Department to halt the minting of pennies, citing the rising costs associated with producing the 1-cent coin. The announcement made on social media highlighted the wastefulness of continuing to produce pennies, which cost more than 2 cents each to mint.

“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump stated. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”

This decision follows growing concerns about the penny’s production cost. According to the U.S. Mint, it lost $85.3 million in the 2024 fiscal year due to the nearly 3.2 billion pennies it minted. The cost to produce each penny increased to $0.037, up from $0.031 the year before. The mint also loses money on the nickel, with each of the $0.05 coins costing nearly $0.14 to make

Trump had not discussed a desire to eliminate the penny during his campaign, however, the idea gained attention after Elon Musk’s so-called Department of Government Efficiency raised the issue in a post on X (formerly Twitter) last month. Musk highlighted the rising cost of producing the penny which seems to have influenced Trump’s decision to take action on this issue. Trump has not elaborated on what will come next for the penny or how the Treasury plans to handle the large stock of pennies already in circulation.

While many may support this latest directive aimed at eliminating the one cent, the penny does have its supporters, and it’s likely that the cessation of penny production will face legal challenges. Proponents of the one-cent coin argue that it still holds value in certain areas in the everyday economy. These advocates may seek legal avenues to overturn or delay the decision, especially considering the precedent of past failed attempts to eliminate the penny.

For now, this directive marks the latest in a series of rapid-fire actions by the Trump administration aimed at reducing government waste, even if it is a “penny at a time”.