Penny Production Halted by Treasury Department
WASHINGTON — The Trump administration has declared that continuing to produce pennies is no longer viable.
The US Mint has been instructed to stop manufacturing pennies, as confirmed by Treasury officials on Thursday. This decision comes after production costs surged in 2024. By ceasing penny production, the Treasury aims to save approximately $56 million in material expenses, according to an anonymous source close to the matter.
In February, President Trump emphasized this point, calling for the cessation of one-cent coin production. He noted that the cost of minting a penny now exceeds two cents, labeling it a waste of resources. Trump instructed the Secretary of the Treasury to halt all penny production.
Currently, there are about 114 billion pennies in circulation in the US, equating to $1.14 billion, but the Treasury reports they are underused. The penny was among the first coins struck by the US Mint back in 1792.
The Treasury Secretary holds the authority to create and issue coins as deemed necessary for the nation’s needs. Advocates for ending penny production argue that high minting costs outweigh its utility, while fans of the penny contend that it remains valuable, particularly for charitable donations.
The Wall Street Journal was the first to break this news. The penny was once the most minted coin by the US Mint, with estimates indicating that 3.2 billion were created last year alone.
Congress has the power to modify currency specifications, potentially enshrining Trump’s directive into law. However, previous attempts to abolish the penny have faltered.
Recently, two bipartisan bills aimed at permanently discontinuing the penny were introduced. One bill, put forward by Senator Mike Lee (R-Utah) and Senator Jeff Merkley (D-Ore.), aims to ‘make sense, not cents.’ Another initiative, proposed by Representative Lisa McClain (R-Mich.) and others, is called the Common Cents Act.
Jay Zagorsky, a Boston University professor, is in favor of stopping penny production but suggests that any proposed legislation should include provisions for rounding prices to eliminate the need for pennies altogether. He has published a book discussing the benefits of cash.
Weller, director of the Common Cent Group, intends to research penny values and their impact, advocating for more cost-effective minting of coins if pennies are removed from circulation.
“The Treasury must find cheaper methods to produce coins like nickels,” Weller said, stressing the importance of maintaining cash options in transactions.
