A bold fiscal move by President Donald Trump targets one of America's most familiar coins in his latest effort to reduce government waste.
According to Breitbart News, President Trump has instructed Treasury Secretary Scott Bessent to halt the production of new pennies, citing the excessive manufacturing costs that exceed two cents per coin.
The decision follows a revealing report from Elon Musk's Department of Government Efficiency (DOGE), which highlighted that penny production cost American taxpayers more than $179 million in fiscal year 2023. The analysis showed that the U.S. Mint manufactured over 4.5 billion pennies during that period, representing approximately 40% of all coins produced for circulation.
The U.S. Mint's 2024 report revealed that producing and distributing each penny costs approximately 3.7 cents. This significant increase in production costs can be attributed to rising zinc prices, which have doubled since 2016. The penny's composition primarily consists of zinc with a copper overlay that gives it its distinctive appearance.
The cost of penny production has been a persistent concern for the government, showing a dramatic increase from 1.5 cents per unit in 2016. This escalation in manufacturing expenses has prompted renewed discussions about the necessity of continuing penny production in the current economic climate.
Trump announced his decision through his Truth Social platform, where he stated:
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 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.
The decision to halt penny production aligns with broader government efficiency measures implemented by the Trump administration. In November 2024, following his election victory, Trump appointed Elon Musk to lead the Department of Government Efficiency, tasking him with identifying and eliminating wasteful government spending.
DOGE's analysis of penny production costs has brought attention to this long-standing issue. The department's findings shared on X (formerly Twitter), emphasized the substantial financial burden on taxpayers and questioned the economic viability of continued penny production.
The initiative represents part of Trump's larger strategy to streamline government operations and reduce unnecessary expenditures. The administration aims to address various forms of government waste and inefficiency through targeted reforms and policy changes.
The decision to cease penny production marks a significant shift in U.S. monetary policy and government spending practices. It demonstrates the administration's commitment to addressing even seemingly minor instances of government waste that accumulate into substantial costs over time.
The Treasury Department's implementation of this directive will likely impact various sectors of the economy, from retail operations to banking systems. However, existing pennies will remain in circulation, ensuring a gradual transition that minimizes disruption to daily commerce.
The policy change reflects a broader examination of government spending efficiency under Trump's second term. This includes various initiatives led by DOGE to identify and eliminate wasteful expenditures across federal departments.
President Trump's directive to halt penny production represents a decisive move to address government waste, targeting a coin that costs nearly four cents to produce while being worth just one cent. The decision, supported by data from Elon Musk's Department of Government Efficiency, aims to save taxpayers millions of dollars annually by eliminating the production of new pennies.
