President Donald Trump has ordered the U.S. Treasury to stop making new pennies because they cost more to produce than they are worth. Each penny costs about 3.07 cents to make, leading to an annual loss of around $179 million for taxpayers.
U.S. Treasury Secretary Scott Bessent has been told to stop making pennies, according to President Donald Trump in a post on his Truth Social media account on Sunday. Trump explained that pennies cost more than they are worth and called it wasteful. He instructed the Treasury Secretary to halt penny production, saying it’s time to eliminate waste from the national budget, even if it’s just a penny at a time.
This move is part of Trump’s broader plan to cut unnecessary government spending. The decision comes under the Department of Government Efficiency (DOGE), led by Elon Musk, which aims to reduce wasteful expenses.
While new pennies will no longer be produced, the ones already in circulation can still be used for transactions. Some people support the decision, saying it will save money, while others worry about how prices will be rounded without pennies.
The penny was first introduced by the government in 1793. Since 1909, it has featured a profile of President Abraham Lincoln on the front, and is made of zinc and copper.
Other countries, like Canada, took similar steps, discontinuing theirs penny in 2012 due to high production costs. The U.S. will now see how this policy impacts daily transactions and government savings in the coming months.
Why It Matters:
It saves millions of dollars annually.
It could change how small payments are handled.
It aligns with efforts to make government spending more efficient.
This decision marks a shift in U.S. currency policy, and its effects will become clearer over time.
