Trump Halts Penny Production Amid Cost Concerns

President Donald Trump has directed the U.S. Treasury Department to cease the production of new pennies, citing the high cost of minting the one-cent coin, which exceeds its face value. Trump announced this decision via his Truth Social platform, highlighting that each penny costs over 3 cents to produce, resulting in significant financial losses. The initiative aligns with efforts by the Department of Government Efficiency, led by Elon Musk, to reduce government spending. The U.S. Mint reported a loss of $85.3 million from penny production in the 2024 fiscal year. However, it remains unclear whether Trump has the authority to unilaterally stop penny production, as currency specifications are determined by Congress. The move follows the example of countries like Canada, which eliminated its penny due to similar cost concerns.