President Donald Trump has announced that he is directing the Treasury Department to stop minting pennies.

"For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!" Trump said in a Truth Social post Sunday. "Let's rip the waste out of our great nations budget, even if it's a penny at a time."

The one-cent coin was one of the first made by the U.S. Mint more than 230 years ago. For about two decades, it has cost more to make and distribute than it is worth. Now, it is a target of Trump's federal cost-slashing efforts.

Here is what we know so far.

A new penny-pinching tactic?Elon Musk's DOGE says getting rid of the penny could cut costs

Need a break? Play the USA TODAY Daily Crossword Puzzle.

Why does Trump want to get rid of the penny?

Trump called the money spent to mint pennies a "waste."

His comments echo those from the newly established Department of Government Efficiency, or DOGE, headed by Tesla and SpaceX CEO Elon Musk, which posted on X about the penny's cost to taxpayers shortly after Trump's inauguration.

"The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023. The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced," the DOGE post said. "Penny (or 3 cents!) for your thoughts."

Rising production costs have spurred other countries to eliminate small-denomination coins. Canada stopped making pennies in 2012, and Australia stopped circulating one- and two-cent coins back in 1992.

How much does it cost to make a penny?

The penny cost 3.69 cents to make in fiscal year 2024, according to a U.S. Mint report. It is the 19th consecutive year the unit cost of the penny and the nickel have been higher than their worth, the report said.

In fiscal year 2024, the penny's unit cost increased 20.2% from the year before, the report said, and the increase has been partially driven by the rising costs of metals like zinc and copper. The costs to produce and distribute coins rose across all circulating denominations; the quarter's increase was the greatest at 26.2%.

Can Trump stop minting the penny?

It is unclear whether the president alone has the authority to stop minting the penny. Though Trump appointed Scott Bessent to head the Treasury Department, the U.S. Mint receives congressional approval for every coin it manufactures, according to its website.

Contributing: Fernando Cervantes Jr.

Kinsey Crowley is a trending news reporter at USA TODAY. Reach her at [email protected], and follow her on X and TikTok @kinseycrowley.