Trump Ends Penny Production Over Costs

In a move aimed at cutting unnecessary government spending, former President Donald Trump has announced the official cessation of new penny production by the U.S. Treasury. The decision stems from longstanding concerns about the cost inefficiency of producing the one-cent coin, which has for years cost more than its face value to mint.

A Costly Coin

According to the U.S. Mint, each penny costs over two cents to produce, making it one of the most financially wasteful denominations in circulation. The high production costs are primarily attributed to the rising prices of raw materials such as zinc and copper, as well as manufacturing and distribution expenses. While calls to eliminate the penny have circulated for years, Trump’s decision marks a definitive step toward phasing it out.

Budgetary Impact

Supporters of the move argue that discontinuing the penny will save taxpayers millions of dollars annually and streamline cash transactions. Critics, however, worry about potential rounding adjustments in pricing and their impact on consumers. Nonetheless, many economists believe that phasing out the penny is a logical step, as inflation has diminished its practical use.

Super Bowl Announcement?

Rumors have spread across social media suggesting that Trump made the announcement during the Super Bowl, though no official confirmation has been provided regarding the timing. If true, this would align with his history of making high-profile announcements during major televised events to maximize public attention.

What’s Next?

With new penny production halted, the existing supply will continue to circulate indefinitely. However, the U.S. Treasury may soon implement guidelines on handling cash transactions without pennies, including rounding rules similar to those adopted by other countries that have retired low-value coins.

As the debate over small-denomination currency continues, this decision marks a significant shift in U.S. monetary policy—one that could set a precedent for further currency changes in the future.