End to Penny Minting: A Bold Proposal by Trump

A recent news by US President Donald Trump has grabbed the attention of Americans and financial experts. This Bold proposal by Trump hints at plan to halt the penny minting. Trump’s action is the latest in a series of quick decisions by his government. They have been making announcements and using orders to make big changes on diverse issues like gender, immigration, diversity and also the name of the Gulf of Mexico.

Reason to stop Penny Minting:

For many years, The US Ministry has faced criticism for the ever-growing costs of penny production. On Sunday night, Trump wrote on his Truth Social site that each 1 cent coin now costs more than twice of its value to every taxpayer — approximately 3.7 cents per penny. Trump further wrote that this is so wasteful, and he has instructed his Secretary of the US Treasury to stop producing new pennies.

In Fact, the US Ministry reported a loss of $85.3 million in 2024. This deficit is largely related to production of nearly 3.2 billion pennies. And this cost of each penny was 3.7 cents, which is more than it cost the year before. Also, the Ministry loses money in making nickels, because each nickel, worth 5 cents, costs nearly 14 cents to produce.

This move by Trump is associated with the broader agenda of cutting unnecessary government expenditures. As in the year 2024, the U.S. Mint lost $85.3 million because it cost more to make pennies than they were worth. They made almost 3.2 billion pennies, and each one cost about 3.7 cents to make, which is more than it cost the year before. The Mint also loses money making nickels, because each nickel, worth 5 cents, costs nearly 14 cents to produce.

Concerns about Penny’s Future

This move by Trump has initiated considerable debate; however the issue of eliminating the penny is not new. Various bills have been proposed to Congress to either eliminate penny production or round its prices to the nearest 5 cents. Elimination of the penny is linked to cost saving and it can speed up transactions at cash registers. Further it can align the US with other countries like Canada, which stopped minting its penny back in 2012.

However, this path is not as easy as it seems, it holds a lot of hurdles. The specifications of currency like metal contents and coin size are set by Congress, this would potentially complicate the action of Trump. But some experts believe may be some room from the Treasury Department to cease penny production without requiring new legislation. An economic professor, Robert K. Triest, at Northeastern University said:

“The process of discontinuing the penny in the U.S. is a little unclear.

It would likely require an act of Congress, but the Secretary of the Treasury

might be able to simply stop the minting of new pennies”

The Push for Fiscal Efficiency

Trump’s Administration is focused on cutting costs and Musk is leading this effort. Together they aim to save $2 trillion by looking at whole government agencies and large number of federal government workers. Trump has reinforced his commitment to reducing inefficiencies at every level of government and said:

“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time”

Conclusion:

As the discussion about the future of penny continues, it is to see whether Trump’s plan will gain traction or encounter a significant opposition. However, it seems that penny’s days, as a staple of American currency, may be numbered. This move is likely to leave a lasting impact on fiscal policy and everyday transaction of citizens. In the meantime, we will keep an eye on the unfolding of this bold proposal.