US President Donald Trump has directed Treasury Secretary Scott Bessent to halt the production of one-cent coins, commonly known as pennies. The announcement was made on Trump’s Truth Social platform, where he framed the decision as a budget-saving measure.
“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” Trump stated in his post, emphasizing the move as a step toward reducing unnecessary government spending.
The decision follows a post on X last month from Elon Musk’s unofficial Department of Government Efficiency (Doge), which highlighted the financial burden of producing pennies. The cost of minting these coins has been a subject of debate in the U.S. for years.
“This is so wasteful,” Trump added in his post. “I have instructed my Secretary of the US Treasury to stop producing new pennies.”
According to the U.S. Mint’s 2024 annual report, the production and distribution of a single one-cent coin cost 3.69 cents—far exceeding its face value. Despite multiple attempts by government officials and members of Congress in the past to phase out the penny, such proposals have not been successful.
Critics of the penny argue that the coin, which is made primarily of zinc with a copper coating, is an unnecessary drain on resources and taxpayer money. On the other hand, supporters contend that keeping the penny in circulation helps stabilize prices and aids charitable fundraising efforts.
The U.S. is not the first country to consider eliminating its lowest denomination coin. Canada discontinued its one-cent coin in 2012, citing the cost of production and its diminishing purchasing power. Similarly, in the UK, no new coins were minted in 2024 due to the declining use of cash and an adequate supply already in circulation.
Although the UK Treasury has stated that one-penny and two-penny coins are not being removed from circulation, fewer new coins have been produced in recent years. With more people shifting to cashless transactions, the UK has experienced extended periods in which no new 2p coins were minted, and 20p coins have also seen intermittent production halts.
