As part of ongoing efforts to cut federal spending, President Donald Trump’s Department of Government Efficiency (DOGE) is now examining the possibility of halting penny production.
The initiative aims to reduce costs for taxpayers and streamline government operations.
A post on X (formerly Twitter) by the Elon Musk-led group on Tuesday highlighted the growing concern over the expense of producing pennies.
The Penny’s Growing Cost to Taxpayers
The penny, which currently costs taxpayers three cents to produce—three times its actual value—has become a financial burden on the country.
According to DOGE, the cost of manufacturing the penny totaled a staggering $179 million in fiscal year 2023.
With such high costs, it’s clear that rethinking the penny’s future could provide significant savings.
What Could Happen to the Penny?
Though it’s not yet clear whether DOGE will recommend completely eliminating the penny, the group is considering several options, including halting or reducing its production.
In fact, the U.S. Mint already made a significant move by decreasing penny production by nearly 29 percent from 2023 to 2024.
Data from the U.S. Mint also indicates a trend of decreasing coin production overall, with 2024 marking the fourth consecutive year of decline in coin output.
Global Trends Toward Phasing Out Small Denominations
The discussion surrounding the penny’s future isn’t unique to the U.S.
Several countries, including Canada, have already moved to phase out their one-cent coins.
Canada stopped producing its penny in 2012, though a 2018 analysis showed that the rounding up of prices at grocery stores led to a higher cost for Canadian shoppers.
Despite this, many see phasing out small-denomination coins as an effective strategy to cut costs.
Trump’s Commitment to Saving Taxpayer Money
Trump has long pledged to find ways to save taxpayer money, and initiatives like DOGE are part of his ongoing efforts to cut unnecessary federal spending.
However, reducing the cost of the penny isn’t the only financial issue Trump aims to tackle.
During his presidency, Trump was focused on reducing food and gas prices, which were top concerns for voters, particularly after the economic challenges caused by the COVID-19 pandemic.
Trump’s History with Currency Changes
Trump has weighed in on currency matters before, such as his opposition to putting Harriet Tubman’s portrait on the $20 bill.
The redesigned $20 bill, which was initially set to be unveiled in 2020, faced delays due to concerns about counterfeiting.
Trump had argued that replacing Andrew Jackson’s image with Tubman’s was an example of political correctness.
This decision was one of the first to be reversed after Biden took office, removing the portrait of Jackson from the Oval Office.
DOGE’s Leadership Shakeup and New Goals
The Department of Government Efficiency was officially signed into existence by President Trump shortly after his inauguration.
DOGE has already undergone some leadership changes, including a shift in its leadership role.
Former Republican candidate Vivek Ramaswamy, who was initially slated to co-lead the department with Musk, decided to focus on his 2026 gubernatorial run in Ohio instead.
Despite the leadership changes, the department is moving forward with its mission to cut federal costs and increase efficiency.
This article was published on TDPel Media. Thanks for reading!
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