The US Treasury Secretary Scott Bessent has been told to stop minting one-cent coins, or pennies as they are widely called, by US President Donald Trump in an announcement on his Truth Social media account.
"Let's rip the waste out of our great nations budget, even if it's a penny at a time," Trump's post said, describing the move as a cost-cutting measure.
It comes after Elon Musk's unofficial Department of Government Efficiency (Doge) drew attention to the cost of minting pennies in a post on X last month.
The debate over the cost and usefulness of pennies has been a long-running one in the US.
"This is so wasteful," Trump's Truth Social post said.
"I have instructed my Secretary of the US Treasury to stop producing new pennies."
According the US Mint's 2024 annual report, making and distributing a one cent coin costs 3.69 cents.
US government officials and members of Congress have in the past proposed discontinuing the penny without success.
While its detractors have argued that the zinc and copper coin is a waste of money and resources, those who support it say that the coin keeps prices lower and boosts fund-raising for charities.
Other countries have discontinued similar coins. Canada ditched its one-cent coin in 2012 citing the cost of minting it and its falling purchasing power due to higher prices.
The declining use of cash meant the UK did not mint any new coins in 2024, after officials decided there were already enough coins in circulation.
The UK Treasury has said that 1p or 2p coins are not being scrapped, but with more people living cashless lives, there have been several years when no 2p coins were produced. 20p coins have also seen various periods without new minting.
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