Trump Orders End to Penny Production—Can He Actually Do It?

In a bold move to reduce government spending, Trump ordered an end to penny production, citing the rising cost of minting the coin. President Donald Trump announced that he has ordered the U.S. Treasury to cease production of the penny, calling the coin an unnecessary drain on taxpayer money. The announcement, made via Truth Social late Sunday night, claims that minting the one-cent coin is a waste of resources. Should the United States finally say goodbye to its smallest coin, or is there more at stake than meets the eye?

The Cost of Making Pennies

Trump is not wrong about the economics. According to a 2024 report from the U.S. Mint, it cost approximately 3.7 cents to produce and distribute a single penny last year—meaning taxpayers effectively lost nearly three cents for every one-cent coin minted. In total, the government produced 3.2 billion pennies in 2024, amounting to a staggering loss of over $85 million.

The problem is not new. The cost of producing pennies has exceeded their face value for nearly two decades, driven by rising prices of the copper and zinc used to make the coins. The inefficiency has long been a topic of debate among economists and policymakers. Several countries—including Canada, Brazil, and Australia—already have eliminated their lowest-denomination coins.

Can Trump Legally Order End of Penny Production?

While the president’s declaration has made headlines, it is unclear whether he has the unilateral authority to halt penny production. The U.S. Mint, which operates under the Treasury Department, is ultimately governed by congressional legislation. This means that any permanent discontinuation of the penny would likely require an act of Congress.

Legal experts suggest that, while the president can influence policy and direct executive agencies, coin production is specifically authorized and regulated by federal law. Congress has historically been slow to act on eliminating coins, largely due to concerns about inflation, industry lobbying, and consumer sentiment.

Public Reaction and Economic Implications

Predictably, Trump’s announcement has sparked mixed reactions. Supporters of eliminating the penny argue that the move is long overdue, pointing to the economic inefficiency of keeping a coin that is rarely used in circulation. Many also highlight the experience of Canada, which phased out its penny in 2012. In cash transactions, prices there are simply rounded up or down to the nearest five-cent increment, with little noticeable economic impact.

However, opponents warn that eliminating the penny could lead to subtle price increases. Critics argue that retailers might choose to round prices up rather than down, essentially creating a hidden tax on consumers. The group Americans for Common Cents, an advocacy organization dedicated to preserving the penny, has also pointed out that nickels—often seen as the next logical alternative—are even more expensive to produce, costing nearly 14 cents per coin.

Government Efficiency Under Trump

The move to eliminate pennies is part of a broader push by the Trump administration to slash government waste. According to Trump, the pennies cost significantly more than their face value to produce, which contributes to the much-spoken waste. “For far too long, the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote. “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

The newly formed Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy, has been vocal about cutting excessive federal expenditures. The agency recently flagged penny production as a major cost burden, estimating that taxpayers lost over $179 million in fiscal year 2023 due to coin inefficiencies.

Trump’s second term has already seen a flurry of executive actions aimed at cutting costs and restructuring government agencies. Alongside the penny order, he has also reversed the TikTok ban, declared that there are “only two genders,” and controversially renamed the Gulf of Mexico to the “Gulf of America.”

What’s Next for the Penny?

With the Treasury Department yet to issue an official response and Congress unlikely to act swiftly, the fate of the penny remains uncertain. While Trump’s announcement has brought renewed attention to the issue, it remains to be seen whether the move will translate into real policy change—or if it will simply join the long list of past efforts to phase out the penny that ultimately went nowhere.

For now, Americans can still expect to receive pennies as change—whether they actually use them, or let them accumulate in jars, remains a different question entirely.

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