In an effort to cut government spending, President Donald Trump’s newly established Department of Government Efficiency (DOGE) is exploring the idea of stopping penny production.
The initiative comes as part of a broader focus on reducing taxpayer expenses, with a specific emphasis on coins that are costing more to produce than they’re worth.
Penny Production Costs Are Skyrocketing
On Tuesday night, DOGE shared a post on X (formerly Twitter) highlighting the rising cost of producing the penny.
Currently, it costs taxpayers about three cents to make each penny, which is three times the value of the coin itself.
According to the post, the total cost of producing pennies in fiscal year 2023 was an astonishing $179 million.
This led to discussions about whether halting penny production could help save significant amounts of money.
What’s Next for the Penny?
While it’s unclear whether DOGE will recommend eliminating the penny altogether or simply reducing its production, the U.S. Mint has already taken some action.
In fact, between 2023 and 2024, the Mint decreased penny production by nearly 29%.
According to 2024 data from CoinNews.net, this marks the fourth consecutive year of declining coin production in the U.S.
Despite these efforts, the Federal Reserve continues to order the minting of more pennies than any other denomination.
Global Trend: Other Countries Phasing Out the Penny
The U.S. isn’t the only country facing the dilemma of an outdated, expensive coin.
Canada, the U.S.’s neighbor to the north, officially stopped producing one-cent coins in 2012.
However, a 2018 analysis by the Atlantic Economic Journal found that Canadians ended up spending an additional $3.27 million annually due to rounding prices at grocery stores to the nearest nickel.
While there may be some financial impact from removing the penny, many countries are choosing to eliminate low-value coins to reduce costs.
Trump’s Economic Focus: Lowering Prices for Americans
While saving money on penny production is a priority for DOGE, President Trump has made it clear that his biggest mandate from voters is to reduce food and gas prices.
During his campaign, voters expressed dissatisfaction with President Joe Biden’s handling of the economy after the COVID-19 pandemic, prompting Trump to focus on strategies that could lower costs for everyday Americans.
Trump’s Historical Stance on Money Matters
Trump’s involvement in financial matters isn’t new.
During his first term, he opposed the idea of replacing Andrew Jackson on the $20 bill with abolitionist leader Harriet Tubman.
The redesign was initially scheduled for 2020 but was delayed by Trump’s Treasury Secretary, Steven Mnuchin, citing concerns about counterfeiting.
Trump argued that replacing Jackson with Tubman was a form of “pure political correctness.”
The portrait of Jackson, which had been displayed in Trump’s Oval Office, was later removed by President Biden.
DOGE’s Leadership Shake-Up and Focus on Ohio
The Department of Government Efficiency was officially signed into existence on Monday, just hours after Trump was sworn into office.
However, the department has already seen some changes in leadership.
Former 2024 Republican presidential hopeful Vivek Ramaswamy decided not to take on the co-leadership role with Elon Musk, which Trump had initially assigned him.
Instead, Ramaswamy will now focus on running for Ohio governor in 2026.
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