News Summary
President Trump has announced a stop to the minting of new pennies in an effort to save money and trim down the federal budget. The decision comes in light of rising production costs, with each penny now costing about 3.7 cents to produce. While Trump’s authority to stop production may be uncertain, this move has reignited discussions about the future of the penny, which has faced calls for elimination due to its economic inefficiency. This decision ties into Trump’s broader strategy to identify $2 trillion in spending cuts across federal agencies.
Trump Puts a Stop to Penny Production to Save Some Pennies
In a move that’s raising eyebrows (and maybe a few pennies), President Trump has declared he’s putting a halt to the production of new pennies. This announcement came on a lively Sunday night, as Trump wrapped up a visit to New Orleans, where he caught the first half of the Super Bowl. It seems the excitement of the game wasn’t the only thing on his mind; trimming down the federal budget is also high on his agenda.
Cutting Costs, One Penny at a Time
So, what’s the big deal about pennies? According to Trump, **minting pennies** is nothing short of wasteful. The cost to produce each tiny coin has sneaked up to about **$0.037**, which is just over three cents. That’s a hefty increase from the previous year’s **$0.031**. When we look at the numbers, it gets even more shocking: the U.S. Mint reported a whopping **$85.3 million loss** in the **2024 fiscal year**, much of it tied directly to the minting of almost **3.2 billion pennies**. Just imagine all those shiny, little coins adding up to a big pile of red ink!
The Financial Clout of the Pen-nies
Pennies aren’t the only coins causing financial headaches, either. Nickels aren’t getting off easy; they cost nearly **$0.14 each** to produce, and they’ve also contributed to financial losses at the U.S. Mint. With such steep production costs, it’s no wonder the idea of ditching the penny has come back into the spotlight.
Can Trump Really Do This?
Here comes a twist: while Trump has instructed the Treasury Secretary to stop minting new pennies, it’s still a little murky whether he has the authority to make this happen all on his own. Coin specifications, after all, are typically set by Congress, which means some legislation might ultimately be required to eliminate the penny for good. However, it’s possible that the Treasury Secretary has the power to merely halt the minting process without any additional legal hoops to jump through.
Legislative Attempts and Other Countries’ Moves
There’s a history to this penny debate. Congress has seen numerous attempts to introduce legislation to phase out the penny. Some proposals suggest rounding prices to the nearest five cents to simplify transactions. Folks who advocate for getting rid of the penny point to potential **cost savings** and **snappier checkouts** as compelling reasons to eliminate this tiniest of coins from circulation.
Interestingly, Canada made a similar move back in **2012**, when it ceased penny production altogether. It’s not as if the U.S. hasn’t eliminated coins in the past, either. The last one to bite the dust was the half-cent piece, which became outdated way back in **1857**.
The Bigger Picture
This penny decision is just one part of a much larger picture. It ties into Trump’s broader efforts to pinpoint **$2 trillion** in spending cuts across federal agencies, led by what’s being called Elon Musk’s Department of Government Efficiency. In light of this ambitious goal, stopping penny production could be a small but symbolic step towards tackling excess spending in the federal budget.
What’s Next?
While the future of the penny remains uncertain, one thing is clear: the conversation about the costs associated with producing coins has just heated up. Whether it leads to the end of the beloved penny or not, at least we can say this little coin sure is stirring up quite a buzz!
Deeper Dive: News & Info About This Topic
- The New York Times
- Wikipedia: Penny
- AP News
- Google Search: Trump stop minting pennies
- The Hill
- Encyclopedia Britannica: Penny
- CBS News
- Google News: Trump halts minting pennies
