No New Pennies – Will the Dollar Be Next?

February 10, 2025 – On February 9, 2025, President Donald Trump announced that he had directed the U.S. Treasury Department to halt the production of new pennies, citing the rising costs associated with minting the one-cent coin. In a post on the social media platform Truth Social, he emphasized that the country has been minting pennies “which literally cost us more than 2 cents” for “far too long.”

The cost of producing a penny has exceeded its face value for 19 consecutive years, leading to financial losses for the government. In 2025, the production cost of a single penny was reported to be approximately 2.1 cents, more than double its monetary worth.

The decision to cease penny production revives a longstanding debate about the coin’s relevance and economic impact. Critics argue that eliminating the penny could lead to rounding issues in cash transactions, potentially affecting consumers and businesses. However, proponents of discontinuation highlight the financial inefficiencies and environmental concerns associated with continued penny production.

The move aligns with broader governmental efforts to reduce waste and improve efficiency. The Department of Government Efficiency (DOGE), a cost-cutting task force led by Elon Musk, has been evaluating various areas of federal spending, including the production of low-denomination coins.

While the President has directed the Treasury to stop minting new pennies, the process of discontinuing the coin entirely may require legislative action from Congress. As the situation develops, further discussions and analyses are expected to address the implications for the economy and daily transactions.