Trump Orders Treasury to Halt Penny Production, Citing Wasteful Spending

Washington, D.C. – President Donald Trump announced Sunday that he has directed the U.S. Treasury to stop minting pennies, calling the coin an unnecessary expense.

In a Truth Social post, Trump said he instructed Treasury Secretary Scott Bessent to end the production of the one-cent coin, which bears the image of President Abraham Lincoln.

"For far too long, the United States has minted pennies that literally cost us more than 2 cents to produce. This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies. Let’s rip the waste out of our great nation's budget, even if it’s a penny at a time," Trump stated.

The Cost Behind the Penny

According to the U.S. Mint’s annual report, the cost of producing a single penny reached nearly 3.7 cents in Fiscal Year 2024. For the past 19 consecutive years, the coin has cost more to produce than its actual face value.

Originally made of copper before 1962, the modern penny consists primarily of zinc with a copper coating. The coin has featured Abraham Lincoln’s image since 1909 and holds historical significance as the first coin ever minted by the U.S. Treasury.

Elon Musk’s Support for Ending the Penny

Billionaire entrepreneur Elon Musk, who was appointed by Trump to spearhead cost-cutting measures in the U.S. government, has also voiced opposition to the penny.

Last month, Musk’s Department of Government Efficiency (DOGE) shared a post on X criticizing the continued production of the coin:

“The penny costs over 3 cents to make and cost U.S. taxpayers over $179 million in FY2023. The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced. Penny (or 3 cents!) for your thoughts.”

A Shift in U.S. Currency?

Trump’s decision raises questions about the future of small-value currency and whether other coins, such as the nickel, could face similar scrutiny. Some economists and policymakers have long argued that the penny is obsolete, as digital transactions continue to dominate the economy.

The Treasury Department has yet to release an official statement regarding when production will formally cease and how the change will impact businesses and consumers.