President Trump has announced that he has instructed the Treasury Department to stop minting pennies, citing the fact that it now costs more than two cents to produce each one. The decision comes after the Department of Government Efficiency (DOGE) revealed that producing 4.5 billion pennies in Fiscal Year 2023 cost taxpayers over $179 million, amounting to over 3 cents per penny. This move to stop producing new pennies is part of an effort to cut wasteful spending, with Trump stating that removing even small amounts of waste from the budget is important. The rising costs of metals like zinc and copper have contributed to the increased cost of producing pennies. Other countries like Canada and Australia have already eliminated their small denomination coins, with Canada stopping the production of pennies in 2012 and Australia discontinuing one and two-cent coins in 1992. In the U.S., ending the production of pennies entirely may require congressional approval. This decision marks the end of a 233-year run for the 1-cent coin that was one of the first coins minted by the U.S. Mint after its establishment in 1792.
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