President Donald Trump said on Sunday that he had instructed the Secretary of the US Treasury to stop making new pennies, writing that they “literally cost us more than 2 cents.” He’s right — in fact, each US penny costs 3.7 cents to produce and distribute as of 2024.
Pennies and nickels cost more than they were worth for the 19th consecutive fiscal year, according to the US Mint. Last year, the US Treasury lost money on both coins and have steadily been producing fewer of the two in the past few years.
All coins, though, recorded increases in production and distribution costs — driven by increases in copper and zinc prices. Notably, the quarter cost 26% more to make than it did in 2023 and the penny 20% more.
Experts say getting rid of the penny, however, could burden the US Treasury Department with producing more nickels to fill the gap, ultimately worsening the financial burden.
