President Trump has ordered the U.S. Treasury to stop minting new pennies, calling them an unnecessary expense in an era of rising costs and digital transactions. But can he actually enforce this directive without congressional approval? As other nations phase out small-denomination coins, this move reignites a long-standing debate on efficiency, sentimentality, and the future of U.S. currency.
President Donald Trump has directed the U.S. Treasury to stop minting new pennies, citing their rising production cost and questioning their relevance in a cashless economy. But can he make such a move without congressional approval?
Announcing the directive on Truth Social, Trump stated:
“For far too long, the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!”
The numbers back him up. According to the U.S. Mint’s 2024 report, each penny cost 3.69 cents to produce and distribute—more than triple its face value. The government spent approximately $85.3 million last year on minting the coin, which is rarely used in everyday transactions.
The debate over eliminating the penny is not new. Over the years, bipartisan proposals have surfaced in Congress to phase out the one-cent coin, citing cost inefficiencies. But no legislation has successfully passed.
Halting penny production fits into Trump’s broader cost-cutting agenda, which has already seen entire agencies downsized in his first few weeks back in office. However, under existing law, the Treasury does not have unilateral authority to eliminate a coin. Currency production and specifications—including metal composition and denomination—are determined by Congress.
Robert K. Triest, an economics professor at Northeastern University, noted that while a full discontinuation would require legislative approval, the Treasury Secretary might have some discretion to halt production.
“The process of discontinuing the penny in the U.S. is a little unclear. It would likely require an act of Congress, but the Secretary of the Treasury might be able to simply stop the minting of new pennies,” Triest explained.
If the U.S. does phase out the penny, it wouldn’t be the first nation to do so. Canada eliminated its one-cent coin in 2012, citing production costs and low consumer use. Cash transactions are now rounded to the nearest nickel, with little disruption to the economy. Australia, Sweden, and New Zealand have also retired their smallest-denomination coins.
Meanwhile, in the UK, 1p and 2p coins remain in circulation, but new ones have not been minted in years as cash usage declines.
While eliminating the penny could save taxpayers millions, critics argue that it might inadvertently increase demand for nickels—which are even costlier to produce. The U.S. Mint reports that each nickel costs about 13.78 cents to manufacture.
Additionally, some retailers and charities have expressed concerns that rounding prices could effectively act as a hidden tax, disproportionately impacting lower-income consumers who rely more on cash transactions.
Sentimental attachment to the penny remains strong. Americans for Common Cents, a pro-penny advocacy group, argues that removing it could disrupt pricing and traditions. Yet, the reality is that pennies have become more of a nuisance than a necessity—often left in tip jars, discarded in drawers, or avoided entirely at checkout counters.
Whether Trump’s directive leads to actual policy change remains to be seen. What’s clear is that the penny’s fate has once again entered the national conversation—this time with a cost-conscious White House pushing the issue forward.