US President Donald Trump announced that he has instructed the Treasury to stop producing penny coins, aiming to reduce government spending. In a post on Truth Social, Trump criticized the cost of minting pennies, which he claimed exceeds their value. He emphasized that eliminating this waste, “even if it’s a penny at a time,” would help improve the nation’s budget.
The Department of Government Efficiency, led by billionaire Elon Musk, had previously pointed out the high cost of producing pennies in a January post on X. While the production cost of pennies has been a debated issue in the US for years, past bills to eliminate them have failed in Congress. Trump’s order might require congressional approval, although economics professor Robert Triest suggested Treasury Secretary Scott Bessent could halt penny production without it. If pennies are eliminated, prices would likely be rounded to the nearest five cents, according to Triest.
In 2012, Canada phased out pennies, citing production costs and inflation. Trump has made reducing federal spending a key focus of his administration, with Musk’s DOGE team investigating government expenses.
However, some of the administration’s cost-cutting efforts, including staffing reductions at the US Agency for International Development, have faced legal challenges from Democrats and labor unions.
