Trump Orders Halt on 'Wasteful' Pennies After DOGE Highlighted Cost

President Donald Trump has directed the Treasury Department to stop minting new pennies, citing the rising cost of producing the one-cent coin.

"For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" Trump wrote in a post Sunday night on his Truth Social site as he was departing New Orleans after watching the first half of the Super Bowl.

"I have instructed my Secretary of the U.S. Treasury to stop producing new pennies," the post added.

Newsweek has contacted the Treasury Department for more information.

Why It Matters

The directive marks another early move in Trump's administration as he rapidly enacts policy changes through executive orders and proclamations, targeting issues ranging from immigration to government spending.

The production cost of the penny has long outpaced its face value. The U.S. Mint reported losing $85.3 million in the 2024 fiscal year on the nearly 3.2 billion pennies produced. Each penny cost nearly $0.037 to make, an increase from $0.031 the previous year.

The nickel also costs more than its value, with each five-cent coin costing nearly $0.14 to produce.

Trump's directive aligns with a broader effort to cut government spending, spearheaded by Elon Musk's so-called Department of Government Efficiency (DOGE). Last month, the cost-saving initiative highlighted the penny's cost in a post on X, fueling discussion on the topic.

What To Know

It remains unclear whether Trump has the legal authority to eliminate the penny through executive action. The specifications of U.S. currency, including size and metal content, are determined by Congress.

Over the years, lawmakers have introduced multiple bills targeting the penny, including measures to suspend production, remove it from circulation, or round prices to the nearest five cents, according to the Congressional Research Service.

Advocates for discontinuing the coin argue that it would reduce costs, expedite checkout times at registers, and align with the trend of other countries that have phased out their one-cent coins.

Several countries have already eliminated their smallest denomination coins. Canada stopped minting its penny in 2012. The United States previously discontinued the half-cent coin in 1857, according to the American Numismatic Association, a non-profit organization dedicated to the study of coins.

Other discontinued coins include the two cent, the silver three cent—known as the "trime"—the 20 cent, as well as all of the gold dollar coins.

What People Are Saying

Amanda Miller of the American Numismatic Association told Newsweek: "[Trump's decision] makes sense...The value of a cent is now miniscule - there is virtually nothing that can be bought for a cent and it is no longer usable in vending machines - we can easily round off values and not miss it. The only reason why it has survived so far is because of lobbying - primarily from the zinc and copper industries."

Democratic Colorado Gov. Jared Polis said in a post on X, formerly Twitter: "As well as saving taxpayers hundreds of millions of dollars, there are major environmental benefits to eliminating the penny. This is a great move."

Robert K. Triest, an economics professor at Northeastern University, previously told the Associated Press: "The process of discontinuing the penny in the U.S. is a little unclear. It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop the minting of new pennies."

Dan Urman, a law and politics professor at Northeastern University, previously told Newsweek: "The [treasury] secretary can decide what coins to mint and issue and does not have to issue pennies.

What Happens Next

Whether Trump's order will lead to an actual halt in penny production depends on potential legal challenges and congressional intervention. Lawmakers on both sides of the aisle may weigh in, given past debates on currency reform.

This article contains reporting by the Associated Press.

Update, 2/11/25, 02:44 a.m. ET: This article was updated with additional information and comment from the American Numismatic Association.