Trump Orders End to Penny Production, Citing High Costs

The U.S. President's directive to halt minting pennies faces legal questions and raises debate over the future of small-denomination coins.

President Donald Trump directed the U.S. Treasury to stop producing pennies, citing their production cost of 3.7 cents per coin as wasteful government spending.
The U.S. Mint reported a loss of $85 million in 2024 from penny production, though it remains unclear how the policy will address the 240 billion pennies already in circulation.
Critics argue that only Congress has the authority to eliminate coins under the Constitution, raising questions about the legality of Trump's directive.
Other countries like Canada, Australia, and New Zealand have successfully phased out their lowest-denomination coins, often implementing rounding practices for cash transactions.
Experts note that while eliminating the penny could save millions annually, the transition would require careful planning to avoid disruptions in cash-based transactions.