Trump Orders U.S. Treasury to Halt Penny Production, Calling It ‘Wasteful’

On February 9, 2025, the 47th President, Donald Trump, announced that he has instructed the United States Treasury to stop reproducing pennies, emphasizing the high cost of production. Calling it “wasteful,” he stated that each penny costs more to produce than its face value.

Trump took to social media just hours after being the first-ever sitting president to attend the Super Bowl, stating, “For far too long, the United States has minted pennies, which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies.”

Last fiscal year, 2024, the cost to manufacture and distribute a single penny rose to a staggering 3.7 cents, compared to 2020, when the price was still more than the face value but at a much lower price point of 1.76 cents. Overall, the total loss for the 2024 fiscal year was $85.3 million.

“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump said in a Truth Social post.

“The penny costs over 3 cents to make and cost U.S. taxpayers over $179 million in FY2023. The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced,” the Department of Government Efficiency (DOGE) said in a statement on X.

According to the New York Post, a 2022 poll showed 58% of U.S. voters wanted the government to stop production of pennies, and officials have taken previous steps to achieve this over the last couple of years.

If implemented, this move could align the U.S. with other countries that have discontinued their lowest-denomination coins, such as Canada, Sweden, Australia, and New Zealand.

Pros and Cons

Pros:

• Cost Savings – The U.S. Mint loses millions every year. Eliminating the penny would save taxpayers millions annually.

• Faster Transactions – Counting and handling pennies slow down cash transactions for businesses and consumers.

• Less Clutter – Many pennies either end up in the trash or unused in jars, drawers, or on the ground.

• Other Countries Have Done It Successfully – Canada, Australia, and New Zealand eliminated their smallest coins without economic disruption.

Cons:

• Rounding Concerns – Cash transactions would be rounded up or down, potentially leading to small but frequent overpayments.

• Impact on Low-Income Individuals – Those who rely more on cash transactions could be more affected by rounding than those using digital payments.

• Nostalgia and Tradition – The penny has been a part of U.S. currency since 1793, and some people may resist its removal.

• Effect on Charitable Donations – Many charities rely on penny donations, and their collections could decrease.

• Transition Costs for Businesses – Businesses would need to update pricing, cash-handling systems, and customer education materials.

Will the price of pennies increase?

The answer to that question is yes, but not by much. According to ChatGPT, in 5 to 20 years, pennies might start selling for a slightly higher price of around $0.02 - $0.05, and pre-1982 copper coins could be worth slightly more.

In 20+ years, if pennies become true novelties, even modern-day pennies could be worth more than face value, especially rare error coins.

Overall, common pennies won’t become immediately valuable, but over time, collectors and nostalgia could push up the price.