US President Donald Trump announced plans on Sunday to stop the production of pennies, citing their high costs. However, the process requires further steps and possibly congressional approval.
Trump instructed the Treasury Department to halt new penny minting due to their cost, which he claimed was “wasteful.” But experts argue that the actual cost is higher than Trump’s stated figure, with nearly 3.69 cents required to produce a single penny.
Instead of eliminating the penny, some advocate for changing the composition of the nickel, which costs around 13.8 cents to mint. Americans for Common Cents, an organization supporting the value of the penny, suggests this approach would address the real driver of losses while preserving small denominations in everyday transactions.
Experts believe that Congress will need to become involved and pass legislation to fulfill Trump’s wishes, with previous attempts to eliminate coins having failed. Sens. Joni Ernst and Maggie Hasson introduced bipartisan legislation in 2023 to alter the composition of the penny, but it remains unclear whether this will yield cheaper results.
The US Mint report highlights that changing metal compositions is not a viable option to reduce production costs. Nonetheless, there are precedents for change, with Congress previously authorizing the discontinuation of new half-cent coins in 1857.
Source: https://www.foxnews.com/politics/how-trump-could-get-rid-penny-what-could-come-next-our-pocket-change