Why Trump has ordered US Treasury to stop minting pennies
What's the story
President Donald Trump has ordered the US Treasury Department to cease minting pennies, a move he announced on his Truth Social account.
"For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" he wrote.
The move is part of a larger effort by his administration to cut government spending and eliminate waste, on the advice of Elon Musk's Department of Government Efficiency (DOGE).
Costly minting
A financial burden on US
The decision to stop penny production follows a report emphasizing its burden on the economy.
In FY 2024, the US Mint recorded an $85.3 million loss from producing nearly 3.2 billion pennies, each costing approximately $0.037 to produce.
The cost has risen from $0.031 last year, further fueling demands for reform within Trump's administration and beyond.
Congressional approval
Legal and legislative implications
The penny halt is part of Trump's broader attempt to overhaul government spending, targeting $2 trillion in savings.
But can Trump even get rid of the penny without Congress's approval?
Economics professor Robert K Triest from Northeastern University said that while discontinuing the penny may require an act of Congress, the Secretary of the Treasury could stop minting it without legislation.
Cost savings
Potential benefits and international precedents of penny elimination
Advocates for eliminating the penny argue it would lead to cost savings and faster checkouts. They cite examples from other countries like Canada, which ceased penny production in 2012.
The announcement was made as Trump departed New Orleans after attending part of the Super Bowl championship game.
During his travels, Trump also mentioned that Musk's department found irregularities in Treasury data that could affect US debt calculations.