President Donald Trump has vowed to cut government spending, a goal he plans to accomplish by going after pocket change (literally). Recently, Trump directed the secretary of the treasury to end the production of the penny, citing its inefficiency and high production costs.
Last year marked the 19th consecutive fiscal year that the unit cost of making pennies was above its face value. It costs 3.7 cents to produce a penny, and there are roughly 240 billion of them in circulation—enough for every U.S. resident to have 700 pennies. The U.S. Mint reports that from 2023 to 2024, the unit cost of producing a penny increased by 20.2 percent. The production deficit reached $85.3 million in 2024, a modest reduction from $86 million in 2023.
Getting rid of the penny is not a new idea, and there have been several efforts to eliminate the coin. Former Rep. Jim Kolbe (R–Ariz.) introduced legislation in 2001 and 2006 to eliminate the penny, which ultimately failed to advance. While in office, former President Barack Obama signaled support for the idea, saying in 2013, "Anytime we're spending money on something people don't actually use, that's an example of things we should probably change."
