In a bold move towards cutting government expenditures, President Donald Trump has instructed the U.S. Treasury to cease the minting of new pennies. This decision, announced through a post on Truth Social, highlights rising production costs, with each penny costing over two cents to manufacture.
According to recent data from the U.S. Mint, the production of nearly 3.2 billion pennies resulted in an $85.3 million loss in the 2024 fiscal year. This financial burden prompted Elon Musk, heading the Department of Government Efficiency, to question the rationality of maintaining the coin's production. Trump's administration, known for rapid policy changes, has quickly acted upon this recommendation, seeking extensive budget reforms.
Meanwhile, the actual discontinuation of the penny requires Congressional input, as currency specifications such as size and metal content are determined by legislative mandate. Robert K. Triest, an expert researcher from Northeastern University, highlights the potential for the Secretary of the Treasury to influence the minting process without Congress's direct intervention.
Efforts towards the penny’s removal from circulation have been debated in numerous Congressional sessions. Advocates argue for the economic benefits, improved transaction speed, and simpler currency management that could arise from eliminating this coin. Additionally, global precedents exist, with Canada ceasing its one-cent coin production back in 2012.
This isn't the first instance of re-evaluating coinage within the United States. The half-cent coin was abolished in 1857 when its value fell below practical relevance. Modern-day proposals often suggest rounding cash transactions to the nearest five-cent increment, streamlining the process for consumers and businesses alike.
The move aligns with the Trump administration’s broader goal to optimize federal spending, with a target of identifying $2 trillion in potential savings. Elon Musk’s leadership in governmental efficiency underscores significant budget optimization endeavors, extending beyond currency adjustments to potentially downscaling entire federal departments.
On the political stage, Trump's swift decisions reflect a concerted effort to reconfigure American fiscal policy, focusing on achievable, everyday savings that collectively contribute to significant financial relief. As Trump departed New Orleans after witnessing the Super Bowl, his message to the public is clear: Let’s rip the waste out of our great nation's budget, even if it’s a penny at a time.
