Mint orders last batch of pennies after Trump nixes one-cent coin

By ending production of new pennies, the Treasury expects an immediate annual savings of $56 million in reduced material costs.

The U.S. Mint has placed an order for the last batch of pennies after President Donald Trump ordered the elimination of the one-cent coin.

With the cost of producing a single penny already skyrocketing to about 4 cents, Trump in February ordered Treasury Secretary Scott Bessent, who oversees the mint, to stop making new copper coins as soon as possible.

The administration said in February that the move would generate $500 million in savings over the next 10 years.

The Treasury also expects an immediate annual savings of $56 million in reduced material costs. The savings in labor, overhead and equipment would total $20 million to $25 million annually, and the mint would no longer have to process and transport the copper needed for the coins, saving another $8 million to $10 million per year.

The president’s directive to eliminate the penny comes as part of his broader effort to reduce the federal deficit and streamline government spending.

However, the move has been met with mixed reactions. Some economists argue that eliminating the penny could lead to price increases as businesses round up cash transactions to the nearest five cents.

Despite the president’s order, the government will continue to circulate the existing supply of pennies, and businesses are not obligated to accept cash payments.