How Trump might get rid of the penny — and what could come next for your pocket change
President Donald Trump made headlines on Sunday when he announced plans to halt production of the penny, citing the high costs associated with minting the coin. However, this initiative may require additional steps and potentially congressional approval before it can be implemented.
According to Trump, the United States has been spending more than 2 cents to mint each penny, which he described as a wasteful practice. In response to this issue, he directed the Treasury Department to cease production of new pennies. This decision was influenced by a 2024 U.S. Mint report, which revealed that it costs nearly 3.69 cents to mint a single penny, primarily made of zinc and coated with copper.
Elon Musk, the CEO of Tesla and SpaceX, who is spearheading the new Department of Government Efficiency (DOGE), also highlighted the exorbitant costs of minting pennies. DOGE’s mission is to identify and eliminate inefficiencies, leading to changes such as the dismantling of the $40 billion U.S. Agency for International Development (USAID).
While some advocate for eliminating the penny, others argue that efforts should be focused on reducing the cost of producing the nickel instead. Nickels, valued at five cents, cost approximately 13.8 cents to mint, according to the same U.S. Mint report. Proponents of the penny, like Americans for Common Cents, believe that adjusting the nickel’s production could address the underlying issue of financial losses without eliminating the penny altogether.
The path to discontinuing the penny is not entirely clear-cut, as it may require congressional intervention. Historically, attempts to eliminate the penny through legislation have failed. Senators Joni Ernst (R-Iowa) and Maggie Hasson (D-N.H.) reintroduced a bill in 2023 to modify the penny’s composition in order to reduce costs, reflecting bipartisan interest in addressing this issue.
Robert Triest, an economics professor at Northeastern University, emphasized that the Secretary of the Treasury could potentially halt the minting of new pennies, but a congressional act might be necessary. While changing the penny’s composition could offer cost savings, the 2024 Mint Report indicates that alternative metal compositions may not achieve the desired reduction in production costs.
Congress has a history of discontinuing minting certain coins, such as the half-cent coin in 1857, suggesting that there is precedent for change in the U.S. coinage system. Ultimately, the fate of the penny rests on congressional action and potential legislative reforms to address the financial inefficiencies associated with minting coins.
Diana Stancy, a politics reporter with Fox News Digital covering the White House, contributed to this report.
