President Trump says he has directed the Treasury Division to prevent minting new pennies, bringing up the emerging price of manufacturing the one-cent coin.
“For a long way too lengthy the US has minted pennies which accurately price us greater than 2 cents. That is so wasteful!” Mr. Trump wrote in a put up Sunday evening on his Fact Social web page. “I’ve suggested my Secretary of america Treasury to prevent generating new pennies.”
The transfer by means of Mr. Trump is the most recent in what has been a rapid-fire effort by means of his new management to enact sweeping alternate thru government orders and proclamations on problems starting from immigration, to gender and variety, to the identify of the Gulf of Mexico.
Mr. Trump had now not mentioned his want to do away with the penny throughout his marketing campaign. However Elon Musk’s so-called Division of Executive Potency raised the chance in a put up on X ultimate month highlighting the penny’s price.
The U.S. Mint reported shedding $85.3 million within the 2024 fiscal 12 months that resulted in September at the just about 3.2 billion pennies it produced. Each and every penny price just about $0.037 — up from $0.031 the 12 months earlier than.
The mint additionally loses cash at the nickel, with every of the $0.05 cash costing just about $0.14 to make.
It’s unclear whether or not Mr. Trump has the ability to unilaterally do away with the lowly one-cent coin. Foreign money specs — together with the scale and steel content material of cash — are dictated by means of Congress.
However Robert Okay. Triest, an economics professor at Northeastern College, has argued that there may well be wiggle room.
“The method of discontinuing the penny within the U.S. is a bit unclear. It might most probably require an act of Congress, however the Secretary of the Treasury may be able to merely prevent the minting of latest pennies,” he mentioned ultimate month.
Individuals of Congress have again and again offered law taking purpose on the zinc coin with copper plating. Proposals through the years have tried to quickly droop the penny’s manufacturing, do away with it from movement, or require that costs be rounded to the closest 5 cents, consistent with the Congressional Analysis Carrier.
Proponents of getting rid of the coin have cited price financial savings, speedier checkouts at money registers, and the truth that a lot of nations have already eradicated their one-cent cash. Canada, for example, stopped minting its penny in 2012.
It would not be the primary time the U.S. eradicated its least precious coin. The half-cent coin was once discontinued by means of Congress in 1857.
Mr. Trump’s new management has been sharply concerned about reducing prices, with Musk, who has been introduced on to steer the duty, focused on whole businesses and big swaths of the federal group of workers as he tries to spot a purpose of $2 trillion in financial savings.
“Let’s rip the waste out of our nice international locations funds, even though it is a penny at a time,” Mr. Trump wrote in his put up.
Mr. Trump despatched the message as he was once departing New Orleans after looking at the primary half of of the Tremendous Bowl.
