Washington, D.C. – February 14, 2025 – President Donald Trump has ordered the U.S. Treasury Department to halt the production of pennies, reigniting a debate that has persisted for decades. The decision is part of his administration’s broader effort to reduce what he calls “wasteful spending” in the federal government.
“It makes no sense to keep producing a coin that costs more than it’s worth,” Trump wrote on his Truth Social account. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The move has sparked both praise and backlash, with supporters hailing it as a common-sense financial decision, while opponents argue it could have unintended economic consequences.
Despite its face value of just one cent, the penny is four times more expensive to produce than its worth. According to the U.S. Mint, the cost of manufacturing a single penny stands at approximately 4 cents due to the rising price of zinc, copper, and the costs associated with minting and distribution.
In 2024 alone, the U.S. Mint produced 3.2 billion pennies, meaning taxpayers spent an estimated $12.8 billion on a coin that many Americans do not use in daily transactions.
“We are literally losing money by making money,” said economist Sean Snaith, a professor at the University of Central Florida. “If a private business ran its operations like this, it would be bankrupt in no time.”
The penny has become increasingly obsolete in modern commerce, with many Americans preferring to use debit or credit cards for everyday purchases. Studies have shown that the coin often slows down transactions, adding an estimated 2.5 seconds to each cash purchase as customers and cashiers fumble with small change.
Retailers have expressed mixed reactions to Trump’s order. Some large chain stores support the move, arguing that it will streamline transactions. Others worry that it could lead to price rounding—where businesses round cash transactions to the nearest five cents—which could have a marginal inflationary impact on consumers.
“People are worried that businesses will round prices up rather than down,” said Michael Kerwin, a retail consultant in New York. “While that’s a possibility, studies from other countries that eliminated their smallest coin show it typically balances out over time.”
One major question surrounding Trump’s order is whether the executive branch has the authority to unilaterally discontinue a coin.
Congress has historically been responsible for U.S. currency policy, and some lawmakers believe a formal legislative process is required to permanently phase out the penny.
“The power to mint or discontinue currency ultimately rests with Congress,” said Senator Elizabeth Warren (D-MA). “If President Trump is serious about this, he should bring it to Congress for a vote instead of acting unilaterally.”
However, legal scholars are divided on the issue. Some argue that the Treasury Secretary has the discretion to determine minting amounts, which could technically include producing zero pennies without congressional approval.
“There’s a legal gray area here,” said Laurence Tribe, a constitutional law professor at Harvard University. “It’s unclear whether this action is fully within the president’s authority, but it would likely face legal challenges.”
Trump’s decision has also fueled speculation about whether the government could move toward phasing out other physical coins or even cash itself. The COVID-19 pandemic accelerated digital payments, and many economists believe that cash transactions will continue to decline in the coming years.
Several countries, including Canada, Australia, and New Zealand, have already successfully eliminated their lowest-denomination coins without significant disruptions.
When Canada stopped minting pennies in 2013, it saved an estimated $11 million annually in production costs. Canadian businesses simply began rounding transactions to the nearest five-cent increment, and electronic transactions continued as normal.
While Trump’s executive order directs the Treasury to stop producing new pennies, it remains to be seen whether the measure will face legal challenges or congressional pushback.
If the order moves forward, Americans can expect to see pennies gradually disappear from circulation as businesses and banks phase them out.
“At some point, the U.S. will have to get rid of the penny,” said economist Robert Triest. “It’s just a matter of when and how.”
For now, the debate over the penny’s fate continues, with supporters praising the move as overdue and opponents arguing that change—both literally and figuratively—should not be rushed.
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