President Trump has directed the Treasury Department to cease the production of pennies, citing their escalating production cost. This move sparks debate about the legality and economic implications of eliminating the one-cent coin.
President Donald Trump has declared his intention to discontinue the production of the one-cent coin, citing its escalating production cost. In a post on his Truth Social platform, Trump lamented the financial burden of minting pennies, stating, 'For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!' He further announced, 'I have instructed my Secretary of the US Treasury to stop producing new pennies.
' This move marks another swift action by Trump's administration to implement substantial changes through executive orders and proclamations, encompassing various domains such as immigration, gender and diversity policies, and even the name of the Gulf of Mexico. Notably, Trump had not previously mentioned his desire to eliminate the penny during his campaign. However, Elon Musk's self-proclaimed 'Department of Government Efficiency' raised the issue on X last month, highlighting the penny's financial implications.The legality of Trump's unilateral decision to eliminate the penny remains uncertain. The specifications of U.S. currency, including coin size and metallic composition, are ultimately determined by Congress. Numerous Congressional proposals have aimed to address the penny's shortcomings. These initiatives have encompassed temporary suspension of production, complete elimination from circulation, and rounding prices to the nearest five cents. According to the Congressional Research Service, these proposals have been repeatedly introduced over the years. Advocates for penny abolition emphasize cost savings, expedited checkout processes, and the precedent set by other countries that have already dispensed with their one-cent coins. For example, Canada ceased producing its penny in 2012.This wouldn't be the first instance of the U.S. retiring its least valuable coin. In 1857, Congress discontinued the half-cent coin. The U.S. Mint reported incurring a significant financial loss of $85.3 million in the 2024 fiscal year, attributed to the production of nearly 3.2 billion pennies. Each penny cost nearly $0.037 to manufacture, a rise from $0.031 the previous year. The mint also experiences financial losses on the production of nickels, 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 legal latitude for Trump to eliminate the penny. He postulates that while an act of Congress might be necessary, the Secretary of the Treasury could potentially suspend the minting of new pennies independently.
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Trump Orders Halt to Penny Production, Citing WastePresident Donald Trump has instructed Treasury Secretary Scott Bessent to stop producing pennies, citing the high cost of manufacturing each coin, which exceeds its face value. The decision comes in response to years of debate surrounding the penny's economic viability and follows calls from individuals and organizations, including Elon Musk's Department of Government Efficiency, to eliminate the single-cent coin.
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Trump Orders Halt to Penny Production, Citing CostPresident Donald Trump has directed the Treasury Department to stop minting new pennies, calling the practice wasteful due to the rising cost of production. While it's unclear if Trump has the authority to unilaterally eliminate the penny, this move aligns with his administration's focus on cost-cutting. The U.S. Mint reported significant losses on penny production in 2024. Previous attempts by Congress to address the penny's viability have been unsuccessful.
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Trump Orders Halt to Penny ProductionPresident Trump has instructed the Treasury Department to cease producing pennies, citing their rising production cost. He argues that the cost of minting a penny exceeds its face value, deeming it wasteful. While this move aligns with his administration's focus on cost-cutting, it remains unclear if he possesses the authority to unilaterally eliminate the penny, as currency specifications are typically determined by Congress.
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Trump Orders Halt to Penny Production Citing CostPresident Donald Trump has directed the Treasury Department to cease minting new pennies, citing the rising production cost which exceeds the coin's face value. This move, part of a broader effort by Trump's administration to implement swift changes, has sparked debate regarding the legality and efficacy of eliminating the penny.
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Trump Orders Halt to Penny Production, Citing Cost OverrunsPresident Trump has directed the Treasury Department to cease minting new pennies, citing the increasing expense of producing the one-cent coin. He argues that the cost of producing each penny exceeds its value, deeming it wasteful. While the legality of this unilateral action is unclear, Trump believes the Secretary of the Treasury has the authority to halt production. This move aligns with his administration's broader focus on cost reduction and efficiency.
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Trump Orders Halt to Penny Minting, Citing Cost OverrunsPresident Trump has directed the Treasury Department to cease the production of new pennies, citing the rising expense of manufacturing each coin. He argues that the penny's production cost exceeds its face value, making it wasteful. The move, while potentially controversial, aligns with Trump's broader push for cost-cutting measures across the federal government.
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