President Donald Trump announced on Sunday that he has directed Treasury Secretary Scott Bessent to stop producing pennies due to the high cost of minting them. In a social media post following his return from the Super Bowl, Trump criticized the wastefulness of producing pennies, which cost more than two cents each to make. He emphasized the importance of cutting waste from the nation’s budget, even if it’s just by eliminating pennies.
The push to eliminate the penny has gained traction in recent years, with Elon Musk’s Department of Government Efficiency bringing attention to the high cost of producing the coin last month. A New York Times Magazine article from the previous year also called for abolishing the penny, highlighting that the failure to do so has come to represent deeper systemic issues.
In 2023, the U.S. Mint reported circulating about 4.1 billion pennies, and for fiscal year 2024, it was revealed that the penny now costs roughly 3.7 cents to produce and distribute—an increase of over 20% from the previous year. Rising costs of metals like zinc and copper are contributing to this increase.
A 2013 commentary from the Brookings Institution suggested going further, proposing that the U.S. should not only stop producing pennies but also discontinue the nickel. The piece argued that the issue isn’t about being too bold but rather too cautious, recommending that the country eliminate both coins and even consider removing the rightmost decimal place in transactions.