They are trying to save funds.
On February 9, President Donald Trump announced that he had instructed the U.S. Department of the Treasury to halt the production of pennies, citing the increasing cost of manufacturing the 1-cent coin. In a post on Truth Social, Trump criticized the expense of minting pennies, noting that they cost more than twice their face value. He emphasized his goal of reducing wasteful spending from the national budget, even if it meant cutting costs “penny by penny.”
The Trump administration has consistently aimed to lower federal spending by targeting non-essential agencies and workforce reductions. According to the U.S. Mint, which is responsible for producing coinage, it cost 3.69 cents to create a penny in fiscal year 2024, up from 3.07 cents the year before. This marks the 19th consecutive year that the production cost of pennies has exceeded their value, largely due to rising metal prices. Specifically, copper prices saw a 5.4% increase, driving up production costs.
Historically, pennies were one of the first coins minted by the U.S. Mint, which was founded in 1792. Initially made from copper, the original penny depicted a woman symbolizing liberty. Today, pennies are primarily composed of copper and zinc, and have featured President Abraham Lincoln’s image since 1909.
The Department of Government Efficiency (DOGE), led by tech entrepreneur Elon Musk, has criticized the production of pennies for its wasteful expenditure. DOGE reported that manufacturing pennies cost U.S. taxpayers over $179 million in fiscal year 2023, with 4.5 billion pennies being produced, amounting to around 40% of all coins minted that year. DOGE’s role involves evaluating federal agencies to identify areas for spending cuts and improved efficiency. However, their efforts have faced legal challenges, including a temporary block on their access to the Treasury Department’s sensitive records, following a lawsuit filed by 19 state attorneys general.
