President Trump announced on Sunday that he directed the U.S. Treasury Department to halt the minting of new pennies. The cost to mint a penny rose in 2024, leading to a more than $85 million loss for the U.S. Mint on the pennies produced last year. Suspending penny production could save the U.S. Mint an estimated $250 million over 10 years. Critics argue that eliminating the penny may lead to price rounding that could hurt cash-dependent consumers and increase reliance on costlier nickels. Some merchants fear that eliminating pennies could increase prices by increasing credit card usage, leading to higher processing fees that reduce profit margins. Congress has the ultimate authority over U.S. coin production, but Trump’s order could temporarily halt the production of new pennies.
