Trump Proposes Halting Penny Production Amid Cost Concerns
President Donald Trump unveiled plans Sunday to halt production of the penny. However, to initiate this process, additional steps and potentially congressional approval are required.
Trump stated he instructed the Treasury Department to cease minting pennies due to their high production costs. Supporters of the penny argue it may be more prudent to evaluate changes to the nickel instead.
"For far too long, the United States has minted pennies which literally cost us more than 2 cents," Trump wrote on Truth Social. "This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies."
Producing pennies is even more costly than Trump's figures suggest, with a 2024 U.S. Mint report indicating it costs nearly 3.69 cents to mint a single penny, primarily made of zinc and covered in copper.
This statement follows Tesla and SpaceX CEO Elon Musk's comments on the expenses associated with minting pennies.
Proponents of the penny exist, and Americans for Common Cents argues that measures should instead target lowering the production costs for nickels, which currently cost about 13.8 cents to mint.
"The logical and fiscally responsible solution is not to eliminate the penny but to focus on producing a cheaper nickel," said Americans for Common Cents Executive Director Mark Weller.
Experts suggest that congressional involvement would likely be necessary to fulfill Trump's proposal, as past congressional attempts to eliminate the penny have not been successful.
There is also bipartisan interest in modifying penny production. In 2023, Sens. Joni Ernst and Maggie Hasson reintroduced legislation to change the penny's composition to lower costs.
Despite this, changes in composition may not effectively reduce costs. The 2024 Mint Report indicates that alternative metal compositions may not bring production costs down to face value.
Historical precedents exist for ceasing production of coins, as Congress previously authorized the discontinuation of new half-cent coins in 1857.
