Boma Achenimie 
In an effort to cut down on government spending, the 7th President of the United States (US), Donald Trump on Sunday ordered the American Treasury to stop producing penny coins.
Meanwhile, Trump’s order would likely require lawmakers’ approval but the Treasury Secretary, Scott Bessent may be able to simply stop the minting of new pennies.
In a post on his Truth Social, President Trump said, “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!
“I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
The Department of Government Efficiency, a cost-cutting initiative led by South African billionaire, Elon Musk has helped slash federal spending — highlighted the cost of producing pennies in a post on X in January.
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Debates about the production cost of pennies are not new in the United States, with several bills having been introduced in Congress that have failed to pass.
Following the new development, prices would likely be rounded to the nearest five cents if pennies are removed, Economics professor Robert Triest of Northeastern University wrote in January.
Canada announced in 2012 that it was eliminating pennies from its coinage system, citing a production cost of 1.6 cents each and its falling purchasing power because of inflation.
Trump has made cutting the federal budget a prominent part of his new administration, with Musk’s DOGE team being tasked with investigating government spending.
However, the legality of some of the administration’s efforts — including slashing the US Agency for International Development’s headcount — has been challenged in court by Democrats and labour unions.
