President Donald Trump has directed US Treasury Secretary Scott Bessent to stop minting new pennies, citing the coin’s high production costs. Announcing the move on Truth Social, Trump called it a step toward reducing government waste, stating, “Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The directive follows a recent post by Elon Musk’s unofficial Department of Government Efficiency (Doge) on X, highlighting that each one-cent coin costs 3.69 cents to produce and distribute, according to the US Mint’s 2024 annual report. Critics of the penny argue that it is a financial and environmental burden, given its low purchasing power and reliance on zinc and copper.
Efforts to eliminate the penny have been proposed in Congress for decades but have consistently failed due to opposition. Supporters of the coin argue that it helps keep prices stable and supports charitable fundraising efforts.
Other nations have made similar moves, including Canada, which discontinued its one-cent coin in 2012, and the UK, which has limited new minting of low-value coins in recent years due to declining cash use.
Existing pennies will remain in circulation, but businesses may need to adapt by rounding cash transactions, as Canada has done. The move is expected to spur discussions on the future of US coinage and the push for greater efficiency in government spending.
Source: BBC