President Trump has ended the costly and wasteful practice of minting pennies, saving taxpayers millions each year on coins that cost nearly four times their face value to produce.
Key Takeaways
- The U.S. Treasury has halted penny production after each coin cost 3.69 cents to make—nearly four times its value
- This decision is expected to save taxpayers approximately $56 million annually in material costs
- President Trump directly ordered the end of penny production as part of his effort to eliminate wasteful government spending
- Businesses will need to round transactions to the nearest 5 cents as pennies gradually phase out of circulation
- There are currently 114 billion pennies in circulation that will remain legal tender
Trump Eliminates Wasteful Government Spending
President Trump has taken decisive action to stop the production of pennies, a move that demonstrates his commitment to fiscal responsibility and eliminating government waste. The decision comes after years of the U.S. Mint producing pennies at a substantial loss to American taxpayers. With each penny costing 3.69 cents to produce, the government has essentially been throwing away money with every coin minted. This cost has increased dramatically in recent years, jumping by more than 20 percent in fiscal year 2024 alone due to rising prices of zinc and copper, the primary metals used in penny production.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies,” Said President Donald Trump
The Treasury Department has confirmed that it has ordered its final batch of penny “blanks” this month and will continue manufacturing pennies only until this inventory is exhausted. This means new pennies will continue to enter circulation early next year before production ceases entirely. The decision aligns perfectly with Trump’s broader economic vision of cutting unnecessary government spending and making practical financial decisions that benefit American taxpayers rather than wasteful bureaucratic traditions.
Economic Impact and Implementation Plan
The financial impact of this decision is substantial. The U.S. Mint anticipates saving $56 million annually in material costs alone by halting penny production. Additional savings are expected from repurposing facilities currently dedicated to penny production. This represents a significant return to fiscal responsibility after 19 consecutive years of both pennies and nickels costing more to produce than their face value. The decision demonstrates the administration’s commitment to practical economic management rather than continuing costly traditions that make little financial sense.
“Minting pennies costs the American taxpayer millions every year – nearly four times more than the pennies are worth,” Stated Sen. Mike Lee
Implementation will be gradual to prevent economic disruption. The approximately 114 billion pennies currently in circulation will remain legal tender, but as they naturally leave circulation, they won’t be replaced with new ones. Businesses will eventually need to adopt rounding practices for cash transactions to the nearest 5 cents, a system that has worked effectively in other countries that have eliminated similar low-value coins. The Federal Reserve has recommended this measured approach to avoid a rush to redeem pennies that could potentially strain the banking system.
Bipartisan Support for a Common-Sense Decision
The “Make Sense Not Cents Act” has been introduced in Congress to formalize the authority for ceasing penny production, showing that even in today’s divided political climate, rational economic decisions can garner bipartisan support. Lawmakers from both parties have recognized that continuing to produce pennies represents an indefensible waste of taxpayer resources. The penny’s production has been steadily declining in recent years, from over 9.36 billion in 2015 to just over 3.22 billion last year, reflecting its diminishing role in everyday commerce.
“No private business would produce something at a 4x loss. It’s time to stop wasting Americans’ hard-earned tax dollars making overpriced pennies,” Stated Sen. Mike Lee (R-Utah).
The decision to end penny production follows similar moves by other countries, including Canada, which has already discontinued similar low-value coins due to rising minting costs and reduced purchasing power. The original penny, established with the U.S. Mint in 1792, was once made primarily of copper but has since shifted to mostly zinc with copper plating as material costs rose. This fundamental change in composition highlights how the penny has struggled to maintain its economic viability in modern times, making President Trump’s decision a practical recognition of financial reality rather than a sentimental continuation of a costly tradition.
