President Trump has directed the Treasury Department to cease the production of new pennies, citing the rising cost of manufacturing. This move follows a recent suggestion by Elon Musk's 'Department of Government Efficiency' highlighting the penny's economic inefficiency.
President Donald Trump announced on Sunday that he has directed the Treasury Department to halt the production of new pennies, citing the escalating expense associated with manufacturing the one-cent coin. In a post on his Truth Social platform, Trump expressed his frustration, stating, 'For far too long the United States has minted pennies which literally cost us more than 2 cents.
This is so wasteful!' He added, 'I have instructed my Secretary of the US Treasury to stop producing new pennies.'This move by Trump marks the latest in a series of swift actions taken by his administration to implement significant changes through executive orders and proclamations. These changes span a wide range of issues, including immigration, gender and diversity policies, and even the name of the Gulf of Mexico. Notably, Trump had not previously mentioned his intention to abolish the penny during his campaign.However, the idea gained traction when Elon Musk's purported 'Department of Government Efficiency' raised the issue on X last month, highlighting the penny's cost inefficiency. It remains uncertain whether Trump possesses the legal authority to unilaterally eliminate the one-cent coin. Determining the specifications of currency, including the size and metal composition of coins, falls under the purview of Congress. Over the years, numerous members of Congress have introduced legislation aimed at addressing the zinc coin with copper plating. These proposals have sought to temporarily suspend penny production, remove it from circulation, or mandate rounding prices to the nearest five cents, according to the Congressional Research Service. Supporters of eliminating the penny cite potential cost savings, faster checkout processes at cash registers, and the fact that several nations have already discontinued their one-cent coins. Canada, for example, ceased minting its penny in 2012.This wouldn't be the first instance of the U.S. retiring its least valuable coin. The half-cent coin was discontinued by Congress in 1857. The U.S. Mint reported a financial loss of $85.3 million in the 2024 fiscal year, which concluded in September, attributable to the nearly 3.2 billion pennies produced. Each penny cost approximately $0.037 to manufacture — a significant increase from the previous year's cost of $0.031. The mint also incurs losses on the nickel, with each $0.05 coin costing nearly $0.14 to produce. Robert K. Triest, an economics professor at Northeastern University, suggests that there might be room for Trump to eliminate the penny. '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,' he stated last month
PENNY TRUMP TREASURY COST PRODUCTION ELIMINATE CONGRESS CURRENCY US MINT
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