February 16, 2025
PBS recently published an article by Jay Zagorsky, Clinical Associate Professor of Markets, Public Policy, and Law, discussing President Donald Trump’s plans to stop minting pennies due to their cost, as each penny costs 3.7 cents to produce.
While this might seem practical, the legality of the president’s unilateral decision is questionable, as only Congress has the constitutional authority to change coin production. Critics argue that eliminating the penny could cause more problems, such as the need for rounding cash transactions, and could lead to public backlash. Although production of pennies has already declined, Trump’s approach could create confusion and legal challenges.
“The U.S. government loses less than $10 million a month minting pennies. In theory, Congress could pass legislation eliminating the penny and requiring rounding within a month or two,” Zagorsky adds.
Zagorsky suggests that any change should be made through proper legislative action.
