President Donald Trump has announced plans to halt the production of new pennies, a decision spurred by the rising costs associated with minting this long-standing U.S. coin. The U.S. Mint has reported that in the fiscal year 2023, producing these copper coins cost taxpayers over $179 million, as the expense to produce and distribute a single penny reached approximately 3.7 cents in 2024. This represents a 20% increase from the previous year's costs. The announcement marks a significant shift in U.S. currency production policy, mirroring moves by other countries that have ceased producing low-denomination coins.
The penny has been a staple of American currency since the establishment of the U.S. Mint in 1792, making it one of the first coins produced by the institution. However, with production costs now surpassing three cents per coin, the financial prudence of continuing its minting has come under scrutiny. Trump, via his Truth Social post following the Super Bowl game in New Orleans, stated his intent to eliminate this financial burden.
“Let’s rip the waste out of our great nations budget, even if it’s a penny at a time,” – Trump
“I have instructed my Secretary of the US Treasury to stop producing new pennies.” – Trump
The cost concerns are not new; the U.S. Mint's annual report for the fiscal year 2024 highlighted the significant expense tied to penny production. Producing approximately 4.5 billion pennies had already cost taxpayers more than $179 million in Fiscal Year 2023. These figures underscore a growing financial inefficiency that Trump's administration seeks to address.
The push to cease penny production in the U.S. follows similar decisions by other nations. Canada discontinued its penny in 2012, and Australia stopped circulating one and two-cent coins as far back as 1992. While Trump's directive is clear, discontinuing the penny entirely may require congressional approval, a hurdle that could influence the timeline and implementation of this policy change.
Adding another layer to this development, Elon Musk's DOGE department has suggested that eliminating the penny could align with broader cost-cutting measures across government operations. This perspective highlights a convergence of thought among influential figures regarding small but impactful budgetary adjustments.
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