WASHINGTON (AP) — President Donald Trump has announced that he will be instructing the Treasury Department to cease the production of new pennies, highlighting the increasing expenses associated with creating the one-cent coin.

“For far too long, the United States has been minting pennies that actually cost over 2 cents to produce. This is an incredible waste of resources!” Trump stated in a post on his Truth Social platform on Sunday night. “I have directed my Secretary of the US Treasury to stop minting new pennies.”

This decision marks yet another initiative from Trump’s administration as it swiftly aims to implement significant changes through executive actions and proclamations concerning a variety of issues, including immigration, gender equality, and even the name of the Gulf of Mexico.

While Trump did not mention his intention to eliminate pennies during his campaign, the idea was previously brought to light by Elon Musk’s Department of Government Efficiency in a post on X last month discussing the penny’s production costs.

According to the U.S. Mint’s report, the agency incurred a loss of $85.3 million in the 2024 fiscal year, which concluded in September, due to the creation of nearly 3.2 billion pennies. The manufacturing cost for each penny was approximately $0.037, up from $0.031 the previous year.

Additionally, the mint also experiences financial losses on the nickel, with production costs nearing $0.14 for each 5-cent coin.

It remains unclear if Trump has the authority to unilaterally eliminate the one-cent coin. Specifications for currency, including coin size and metal composition, are determined by Congress.

However, Robert K. Triest, an economics professor at Northeastern University, suggests that there could be some flexibility in this situation. “The process for discontinuing the penny in the U.S. isn’t entirely clear. While it likely requires Congressional action, the Secretary of the Treasury might have the authority to halt the minting of new pennies,” he explained last month.

Several Congress members have previously proposed legislation aimed at the zinc penny with copper plating. Over the years, various proposals have sought to temporarily halt penny production, phase it out of circulation, or mandate that prices be rounded to the nearest five cents, according to the Congressional Research Service.

Advocates for eliminating the penny highlight potential cost savings and quicker transactions at cash registers, pointing out that several countries have already phased out their one-cent coins. For example, Canada discontinued its penny in 2012.

This wouldn’t be the first instance of the U.S. getting rid of its least valuable coin; the half-cent coin was eliminated by Congress in 1857.

Trump’s administration is firmly focused on reducing expenses, with Musk leading efforts to scrutinize entire agencies and large sectors of the federal workforce, aiming for $2 trillion in savings.

“Let’s eliminate waste from our nation’s budget, even if it’s just a penny at a time,” Trump concluded in his post.

This announcement came as Trump was leaving New Orleans after attending the first half of the Super Bowl.

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AP White House Correspondent Zeke Miller contributed to this report.