Trump tells US Treasury to stop minting new pennies

WASHINGTON, UNITED STATES: US President Donald Trump said Sunday he had told the Treasury to stop producing penny coins, presenting it as an effort to cut down on government spending.

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump wrote on his Truth Social platform.

“I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” he added.

The so-called Department of Government Efficiency — a cost-cutting initiative led by billionaire Elon Musk that has helped slash federal spending — highlighted the cost of producing pennies in a post on X in January.

Debates about the production cost of pennies are not new in the United States, with several bills having been introduced in Congress that have failed to pass.

Trump’s order would likely require lawmakers’ approval but Treasury Secretary Scott Bessent may be able to simply stop the minting of new pennies, economics professor Robert Triest of Northeastern University wrote in January.

Prices would likely be rounded to the nearest five cents if pennies are removed, Triest said.

Also read: Elon Musk’s Department of Government Efficiency sets up job site: Bloomberg

Canada announced in 2012 it was eliminating pennies from its coinage system, citing a production cost of 1.6 cents each and its falling purchasing power because of inflation.

Trump has made cutting the federal budget a prominent part of his new administration, with Musk’s DOGE team being tasked with investigating government spending.

However, the legality of some of the administration’s efforts — including slashing the US Agency for International Development’s headcount — has been challenged in court by Democrats and labour unions.