Trump Ends Penny Production, Calls It Wasteful Spending/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. Mint will halt production of the penny after using up its final batch of blanks, saving taxpayers $56 million annually. The move, ordered by President Trump, marks the end of the one-cent coin due to rising production costs.
U.S. Mint Ending Penny Production: Quick Looks
- Final order in place: The Mint has made its last purchase of penny blanks and will cease production once they are used.
- Presidential directive: President Trump ordered the penny’s phase-out in February, calling it “wasteful” spending.
- Cost savings: Ending the penny is expected to save taxpayers $56 million annually.
- Rising production costs: Pennies cost over 3 cents each to produce, far more than their face value.
- Nickel dilemma: While pennies cost more than they’re worth, nickels cost even more — nearly 14 cents each.
- Business impact: Retailers may start rounding cash transactions to the nearest nickel once the penny disappears.
- Historical context: Canada eliminated its penny in 2013; other nations have done the same with low-value coins.
- No word on nickels: The Treasury hasn’t yet announced any changes to nickel production, despite higher costs.
Deep Look: Treasury Pulls Plug on Penny Production to Cut Waste
The U.S. Mint is officially phasing out production of the penny, marking a significant shift in American currency policy. The decision, confirmed Thursday by a Treasury Department official, comes after President Donald Trump ordered the end of the one-cent coin as part of a broader push to cut federal spending.
Final Run of the Penny
A Treasury spokesperson confirmed that the Mint has placed its final order of penny blanks and will continue minting the coin only until those supplies are exhausted. Once current stocks are depleted, no new pennies will be produced.
This announcement follows Trump’s February directive to halt penny production, which he described on social media as “wasteful” and “nonsensical.” He cited the penny’s production cost — now more than 3 cents per coin — as a prime example of inefficiency in government spending.
Savings and Trade-Offs
The Treasury estimates that eliminating the penny will save the government $56 million annually. However, the cost-saving move isn’t without its complications. Producing nickels currently costs nearly 14 cents each — meaning a rise in nickel production to offset the penny’s absence could erode any financial gains.
Critics warn that increased nickel production might offset or even reverse the expected savings. Mark Weller of Americans for Common Cents estimated that replacing pennies with nickels could cost the Mint an extra $78 million annually if production returns to pre-2024 levels.
What Happens Next?
Though the penny will no longer be minted, existing coins will remain legal tender. However, once new ones stop entering circulation, retailers are expected to round cash transactions to the nearest nickel, a practice already adopted in countries like Canada.
The National Association of Convenience Stores, which has long supported the idea of eliminating the penny, argues the change will speed up transactions.
“Convenience stores sell speed as much as products,” said spokesman Jeff Lenard. “Eliminating pennies, even if it saves just a few seconds, matters.”
The Penny’s Decline
The U.S. Mint has minted over 3 billion pennies in each of the last three years, but many never make it back into circulation. They’re lost, hoarded in jars, or simply discarded.
Economist Gregory Mankiw, a former adviser to President George W. Bush, said the penny’s value has eroded to the point of uselessness.
“When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful,” Mankiw said.
A Broader Trend
The U.S. isn’t alone. Canada stopped producing pennies in 2012 and completely removed them from circulation by 2013. Australia, New Zealand, and several European nations have made similar moves over the past few decades.
Whether the U.S. Treasury will now turn its focus to other costly coins like the nickel remains to be seen. For now, though, the penny’s days are officially numbered — a tiny coin falling victim to towering deficits and modern economics.
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