By Staff Writer: Kayla Reichenbach
President Donald Trump announced on Feb. 11, 2025, that he has directed the U.S. Treasury Department to stop minting new pennies, citing the cost of production. While pennies will remain in circulation, the federal government would no longer produce new ones.
The move is intended to reduce government spending, as each penny cost 3.69 cents to produce in 2024, resulting in an $85 million loss for the U.S. Mint. However, it remains unclear whether the president has the authority to make this decision, as Congress typically oversees coin production.
If the penny is discontinued, the transition could take years. In countries like Canada and Australia, similar efforts led to a gradual phase-out, with cash transactions rounding to the nearest five cents. Some economists believe a timeline of several years would be necessary to adjust pricing and coin circulation in the U.S.
Supporters argue the change would streamline transactions and cut costs, while critics raise concerns about potential impacts on small businesses and consumers. As the debate continues, the fate of the penny will likely depend on congressional action.