President Donald Trump is taking aim at the penny, calling its production a “wasteful” expense that the U.S. can no longer afford. During a social media post on Truth Social on Super Bowl Sunday, Trump announced his decision to halt the minting of new one-cent coins.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents,” Trump wrote. “This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
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This move aligns with the administration’s cost-cutting priorities, with the Elon Musk-led Department of Government Efficiency (DOGE) also advocating for the penny’s elimination. The debate is not new, but with Trump’s push, it could finally gain traction.
A Costly Coin
The penny has been in circulation since 1792, originally made of pure copper but now consisting of 97.5% zinc with a thin copper coating. Despite its historical significance, critics argue it has outlived its usefulness.
The primary argument against the penny is its cost. According to a 2024 U.S. Mint report, it now costs 3.69 cents to produce a single one-cent coin. This means the government spends millions more producing pennies than their face value—a trend that has persisted for nearly two decades.
Abolition advocates also point to the environmental cost. Mining for zinc and copper contributes to carbon emissions and pollution. Some experts argue that eliminating the penny would reduce the need for these resources, benefiting the economy and the planet.
Does the Penny Still Have a Place?
Beyond cost, critics say the penny is simply impractical. Harvard economist N. Gregory Mankiw argued in a 2006 Wall Street Journal editorial that the coin no longer serves a meaningful purpose. “When people start leaving a monetary unit at the cash register for the next customer, the unit is too small to be useful,” he wrote.
According to the Federal Reserve, the purchasing power of a penny has declined more than 30-fold since 1900. Former U.S. Mint Director Philip N. Diehl noted in 2015 that, due to inflation, “if you earn more than the minimum wage, you’re losing money stopping and picking up a penny on the sidewalk.”
Several countries, including Canada, Australia, and most of the Eurozone, have phased out their lowest-denomination coins without significant economic consequences. In Canada, where the penny was discontinued in 2012, studies suggest consumers now pay slightly more on average due to rounding adjustments in cash transactions.
The Case for Keeping the Penny
Despite its apparent downsides, the penny has its defenders. Mark Weller, executive director of the pro-penny group Americans for Common Cents (ACC), argues that eliminating the coin won’t actually save money.
“The government won’t save money if the penny is eliminated,” Weller asserted in response to DOGE’s push for its removal. His group contends that removing pennies would require increased production of nickels, which cost even more to produce—13.78 cents per coin, according to the U.S. Mint.
Another concern is the potential impact on low-income Americans. Studies suggest that rounding transactions to the nearest nickel could result in a small but cumulative “rounding tax,” disproportionately affecting those who rely on cash.
In Canada, a 2017 study found that retailers gained roughly 3.27 million Canadian dollars annually through rounding practices, effectively shifting costs onto consumers. Critics worry a similar phenomenon could occur in the U.S.
Will Trump’s Push Succeed?
Despite past attempts to eliminate the penny, all legislative efforts have failed. Even former President Barack Obama acknowledged in 2013 that the penny’s production made little financial sense but admitted, “It’s one of those things where people get attached emotionally.”
Congress ultimately has the authority to make changes to U.S. currency. If Trump’s administration follows through, it will need lawmakers to pass a bill to halt production officially. Given Americans’ divided opinions on the penny, the debate is likely to continue.
For now, the one-cent coin remains in circulation—but its future has never been more uncertain.
