37°
As he departed the Super Bowl in New Orleans on Sunday night, Trump took to Truth Social to announce his directive to halt penny production, calling it a "wasteful" government expense.
"For far too long the United States has minted pennies which literally cost us more than 2 cents," Trump wrote. "Let's rip the waste out of our great nations budget, even if it's a penny at a time."
The financial burden of the penny has long been debated. According to the US Mint, producing a single penny cost 3.69 cents in 2024, resulting in a loss of $85.3 million on the nearly 3.2 billion pennies produced in fiscal year 2024 alone.
This marks the 19th consecutive year that the unit cost of the penny has exceeded its face value, a phenomenon known as "negative seigniorage."
Trump’s proposal follows similar calls from economists and government officials who have questioned the necessity of continuing to produce the penny.
However, while Trump may want to discontinue the penny, his authority to do so remains uncertain.
The US Mint operates under the authority of Congress, which oversees coin production.
Treasury Secretary Scott Bessent has yet to comment on the president’s directive, and legal experts suggest that an act of Congress may be required to formally end penny production.
Still, some analysts believe the Treasury secretary could have the power to halt new minting unilaterally, leaving the future of the penny in a legal gray area.
Click here to follow Daily Voice Southwick-Tolland-Granville and receive free news updates.
