The Claim

Directed the Treasury to stop production of the penny — which costs 3.69 cents each to make — eliminating a recurring loss for taxpayers and streamlining everyday commerce.

The Claim, Unpacked

What is literally being asserted?

Three factual claims: (1) The president directed the Treasury to stop producing pennies. (2) Each penny costs 3.69 cents to make. (3) This action eliminates a recurring taxpayer loss and streamlines commerce.

What is being implied but not asserted?

That this was a bold, decisive action requiring presidential leadership. That the savings are significant in the context of federal spending. That commerce has already been streamlined. That this is the kind of waste-cutting the administration uniquely delivers. That the action is complete and fully implemented.

What is conspicuously absent?

That the “directive” was a Truth Social post, not an executive order or formal presidential action. That economists and members of Congress from both parties have advocated penny elimination for decades — this is not a novel idea. That Canada, Australia, and New Zealand accomplished the same thing years ago. That the $56 million in annual savings, while real, represents approximately 0.0008% of the federal budget. That as of the claim date (January 20, 2026), the Treasury had only recently halted production (November 12, 2025) and pennies remain in full circulation with no rounding legislation in place. That the Richmond Fed found rounding actually imposes a small net cost on consumers ($6.06 million annually) rather than being perfectly neutral as Treasury claims. That nickels also cost more than face value (13.78 cents each) and continue to be produced.

Evidence Assessment

Established Facts

The president did direct the Treasury to stop penny production, and the Treasury did act. On February 9, 2025, Trump posted on Truth Social: “For far too long the United States has minted pennies which literally cost us more than 2 cents. This is wasteful! I have instructed my Secretary of Treasury to stop producing new pennies.” Treasury Secretary Bessent subsequently implemented the directive. The Treasury placed its final order for penny blanks in May 2025, last shipments to Federal Reserve distribution centers occurred in August 2025, and penny production for general circulation was halted on November 12, 2025. ¹

The 3.69 cents per penny figure is accurate. The U.S. Mint’s FY2024 Annual Report confirmed that each penny cost 3.69 cents to produce and distribute — approximately 3.0 cents in production costs (materials, labor, overhead) and 0.69 cents in administrative and distribution costs. This was up 20.2% from 3.07 cents in FY2023. The penny has cost more than its face value for 19 consecutive years, since FY2006. ²

Penny production generated $85.3 million in negative seigniorage in FY2024. The Mint shipped approximately 3.172 billion pennies in FY2024, losing money on each one. The cumulative loss from penny production since FY2006 amounts to well over $700 million. The U.S. Mint projects an immediate annual savings of $56 million in reduced material costs from cessation. ³

The Treasury Secretary’s legal authority to stop penny production is grounded in statute, though not uncontested. Under 31 U.S.C. sections 5111(a)(1) and 5112(a), the Secretary “may” mint coins “in amounts the Secretary decides are necessary to meet the needs of the United States.” The permissive “may” — rather than mandatory “shall” — gives the Secretary discretion. With approximately 114 billion pennies already in circulation, the argument that zero new pennies are “necessary to meet the needs” is plausible. Harvard constitutional law professor Laurence Tribe confirmed this reading. However, some legal scholars argue that Congress’s specific enumeration of the one-cent denomination implies an intent that it continue to be produced. No formal legal challenge has been filed. ⁴

Economists and legislators from both parties have advocated penny elimination for decades. Rep. Jim Kolbe (R-AZ) introduced the first penny elimination bill in 1989 and continued through the 2006 COIN Act. Senators John McCain (R-AZ) and Mike Enzi (R-WY) introduced the COINS Act in 2017. In 2025, Representatives Robert Garcia (D-CA) and Lisa McClain (R-MI) introduced the bipartisan Common Cents Act after Trump’s announcement. Canada eliminated its penny in 2012; Australia eliminated 1-cent and 2-cent coins in 1992; New Zealand eliminated its 1-cent and 2-cent coins in 1990. The U.S. itself eliminated the half-cent in 1857 when it was worth more than a dime in today’s purchasing power. ⁵

Strong Inferences

The claim that penny elimination “streamlines everyday commerce” is premature. As of January 20, 2026, no federal rounding legislation has been enacted. The Common Cents Act remains pending in Congress. Treasury has issued voluntary rounding guidance (symmetrical rounding to the nearest five cents), but compliance is not mandatory. The restaurant industry has raised concerns — the National Restaurant Association estimated consistent customer-favorable rounding could cost the industry $13-14 million monthly. Multiple states are developing their own rounding policies, creating potential inconsistency. Pennies remain legal tender and in circulation, meaning the commerce transition is incomplete. ⁶

The rounding impact on consumers is not perfectly neutral, contrary to Treasury’s claims. The Richmond Fed’s Economic Brief (EB 25-27), using real transaction data from 4,671 consumers, found that penny elimination imposes a net annual cost on consumers of approximately $6.06 million because transaction amounts cluster disproportionately at digits that round upward (3, 4, 8, 9 cents). This cost is small in absolute terms and dramatically smaller than the production savings, but it contradicts the Treasury’s claim that rounding effects are perfectly symmetrical. ⁷

The $56 million in annual savings, while real, is negligible relative to federal spending. The FY2024 federal budget was approximately $6.75 trillion. The $56 million in penny production savings represents 0.00083% of federal spending — or roughly $0.17 per American per year. For context, the federal government spent $56 million approximately every 4.4 minutes in FY2024. The savings are genuine but the framing as a meaningful fiscal accomplishment overstates their significance. ⁸

What the Evidence Shows

This is one of the more straightforwardly accurate claims in the 365-item list. The core factual assertions — that Trump directed Treasury to stop making pennies, that pennies cost 3.69 cents each, and that stopping production eliminates a recurring loss — are all verified. The Treasury did act on the directive, production has halted, and the savings are real if modest.

The primary issues are framing and attribution rather than factual accuracy. The claim implies this was a novel act of presidential initiative, when in reality penny elimination has been a bipartisan policy consensus for decades, advocated by economists left and right, and already implemented by peer nations years ago. The directive itself was a Truth Social post rather than a formal presidential action — which either signals admirable informality or raises questions about the institutional seriousness of the initiative, depending on one’s perspective.

The claim that penny elimination is “streamlining everyday commerce” is aspirational rather than accomplished. As of the claim date, there was no federal rounding mandate, no uniform business guidance with force of law, and the restaurant industry was actively complaining about inconsistent rounding practices. The 114 billion pennies already in circulation will take years to gradually exit commerce. Canada’s experience — often cited as the model — took several years of adjustment after the 2012 production halt.

The savings framing also exhibits what we might call the “denominator problem in reverse.” The $56-85 million annual savings is real, but presenting it as meaningful taxpayer relief — in a $6.75 trillion budget — is like celebrating that you found a quarter between the couch cushions. The administration presumably included this item because the concept is easy to grasp and popular, not because it represents significant fiscal policy.

The Bottom Line

This claim is mostly true. The factual core is solid: Trump did direct penny production to stop, the 3.69-cent cost figure is accurate per the Mint’s own data, and production has in fact ceased. The recurring taxpayer loss is being eliminated. Where the claim shades into overstatement is in two areas: the suggestion that “streamlining everyday commerce” has been achieved (it has not — the transition is incomplete with no federal rounding law), and the implicit framing of this as a distinctive presidential achievement rather than the eventual execution of a decades-old bipartisan consensus. Stopping penny production is good policy. Economists agree. Both parties have tried for years. Multiple countries did it first. The Trump administration deserves credit for finally doing it — but the claim’s framing as a signature accomplishment in fiscal stewardship overstates both the novelty and the significance of the action.

Footnotes

1. PBS NewsHour, “Trump orders U.S. Treasury to stop minting new pennies,” February 10, 2025; ABC News, “Treasury Department to phase out the penny,” May 22, 2025; U.S. News, “Treasury Department to Pull Penny Production After Trump Order,” May 23, 2025. ↩

2. U.S. Mint FY2024 Annual Report; CoinNews.net, “U.S. Penny Costs 3.69 Cents to Produce in 2024,” February 10, 2025. ↩

3. U.S. Mint FY2024 Annual Report; U.S. Department of the Treasury, “Penny Production Cessation FAQs.” ↩

4. 31 U.S.C. sections 5111(a)(1) and 5112(a)(6); U.S. Department of the Treasury, “Penny Production Cessation FAQs”; ABC News, May 22, 2025 (citing Laurence Tribe). ↩

5. NPR, “President Trump’s order is latest in the decades-long effort to eliminate the penny,” February 13, 2025; PBS NewsHour, February 10, 2025; Congressional history from multiple sources. ↩

6. U.S. Department of the Treasury, “Penny Production Cessation FAQs”; Stateline, “Without pennies, should retailers round up or down?,” December 18, 2025; National Restaurant Association penny shortage page. ↩

7. Federal Reserve Bank of Richmond, “Rounding Up: The Impact of Phasing Out the Penny,” Economic Brief EB 25-27, 2025. ↩

8. U.S. Department of the Treasury, “Penny Production Cessation FAQs” ($56 million savings); CoinNews.net, February 10, 2025 ($85.3 million negative seigniorage); federal budget data. ↩