The U.S. Mint continues its plan to end penny production since this move will save $56 million annually while finally resolving the long-standing discussion about the penny’s fate.
The Treasury Department has made its last penny blank purchase through the Mint which will end penny production after the remaining blanks run out. Trump declared the decision to stop penny production in February this year while expressing his opposition to continuing penny manufacturing.
Since a long time the United States has been producing pennies which end up costing more than 2 cents each. This is so wasteful!” Trump shared this message on Truth Social in February. The President directed Secretary of the Treasury Pete Hegseth to stop making the 1-cent coin.
The instant financial advantages will result from this decision. The Mint declares that each penny costs about 4 cents to manufacture. The production cost of a nickel exceeds 14 cents but officials choose to eliminate the penny because its minimal usage makes it the more sensible choice.
Advocates for keeping the coin argue about its value for pricing accuracy and charitable fundraising along with public sentiment yet opponents point to its minimal purchasing power and increasing production costs. The U.S. Mint produces 3.2 billion pennies annually making it the most widely manufactured coin which represents half of all minted coins.
U.S. currency specifications depend on Congress passing legislation that would permanently eliminate the penny from circulation. The copper-colored Abraham Lincoln coin has faced multiple attempts at retirement through Congress but all such efforts ended in failure because of political opposition and public affection for the coin.
The administration’s move might advance the current debate about currency reform. The Treasury possesses authority for this decision although the Trump administration’s move will likely generate fresh congressional discussions about currency reform.
During the Mint’s penny production phase-out Americans will notice decreasing penny circulation throughout the country.
