President Donald Trump has announced plans to halt the production of new pennies, citing the coin’s financial inefficiency as a key reason for the move. In a recent post on his Truth Social platform, Trump criticized the ongoing minting of pennies, arguing that the cost of producing each coin exceeds its face value and contributes to wasteful government spending.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote. “This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
READ: U.S. Attorney General Pam Bondi Vows To Pursue Leaker Of ICE Raid Memo
The financial inefficiency of penny production is well-documented. According to the U.S. Mint’s 2024 annual report, it costs approximately 3.7 cents to produce each penny, marking the 19th consecutive fiscal year in which production costs have exceeded the coin’s one-cent face value. The report also highlighted similar issues with the nickel, which costs 13.78 cents to manufacture despite having a face value of five cents.
While the move aligns with Trump’s broader efforts to reduce government spending, it raises significant legal and constitutional questions. The U.S. Constitution grants Congress, not the president, the authority to regulate coinage.
This principle has been upheld by the Supreme Court, and federal law assigns the Treasury Secretary the responsibility to mint coins as needed to support the nation’s financial system. As a result, Trump’s directive may face legal challenges if it is seen as overstepping presidential authority.
READ: Third Federal Judge Blocks Trump’s Executive Order On Birthright Citizenship
The penny has long been a subject of debate among economists and policymakers. Critics argue that the coin has outlived its usefulness in modern commerce, where cash transactions are increasingly rare and rounding to the nearest nickel would have minimal impact on consumers.
Proponents of keeping the penny, however, point to its cultural significance and the potential impact on charitable organizations that rely on penny drives for fundraising.
Trump’s announcement has sparked mixed reactions. Supporters applaud the move as a practical step toward reducing unnecessary government expenditures, while critics question its feasibility and legality. Some have also raised concerns about the potential economic implications, such as the effect on businesses that rely on cash transactions and the need to adjust pricing systems.
READ: CNN’s Harry Enten Breaks Down Just How Much More Popular Trump Is In Second Term
The Treasury Department has not yet issued a formal response to Trump’s directive. If implemented, the halt to penny production would mark a significant shift in U.S. currency policy. However, given the constitutional and legal complexities involved, the move is likely to face scrutiny and potential opposition from Congress and other stakeholders.
Please make a small donation to the Tampa Free Press to help sustain independent journalism. Your contribution enables us to continue delivering high-quality, local, and national news coverage.
Connect with us: Follow the Tampa Free Press on Facebook and Twitter for breaking news and updates.
Sign up: Subscribe to our free newsletter for a curated selection of top stories delivered straight to your inbox.
