U.S. President Donald Trump announced on Sunday that he has directed the Treasury to stop minting pennies, citing excessive costs. Trump stated on Truth Social that producing a single penny costs more than its face value, calling it wasteful government spending.
The U.S. Mint reported that in 2024, the cost of making one penny was approximately 3.7 cents, marking the 19th consecutive year of production costs exceeding value. While the exact government expenditure on pennies remains unclear, the move aligns with Trump’s broader efforts to reduce the fiscal deficit and slash federal spending.
To streamline expenses, Trump established the Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk. The initiative aims to identify and eliminate unnecessary government expenditures. However, DOGE has faced criticism for advocating to defund USAID and considering the dissolution of the Department of Education.
Despite Musk’s initial goal of cutting $2 trillion in government spending within two years, he recently revised expectations, stating that reducing $1 trillion is more realistic. The feasibility of Trump's cost-cutting agenda remains uncertain, given that a significant portion of federal spending is allocated to defense.
Trump’s decision to halt penny production underscores his administration’s commitment to reducing wasteful expenditures and addressing the nation’s fiscal challenges.