The former president argues that pennies cost more to produce than their actual value.

On Sunday night, Donald Trump issued a new order to Treasury Secretary Scott Bessent. He instructed him to stop producing pennies. According to Trump, this move would reduce unnecessary government spending.

“Let’s eliminate the waste from the budget of our great nation, even if it’s one penny at a time,” he wrote on Truth Social. He also stated that pennies “literally cost us more than 2 cents.”

However, it’s unclear whether Trump has the authority to make this decision. The U.S. Mint points out that only Congress has the power to authorize coin production. Neither the Treasury nor the Federal Reserve has that authority.

Still, Trump is right on one point. Pennies cost more than they are worth. For years, experts and officials have proposed eliminating them. Their purchasing power has dropped due to inflation, while production costs have risen.

According to the latest U.S. Mint report, producing and distributing a penny cost 3.69 cents last year. This means that each penny generated a loss of 2.69 cents.