Every day brings another waste-cutting proposal by the Department of Government Efficiency (DOGE), many of which have been recommended by Citizens Against Government Waste (CAGW).  The February 10, 2025, announcement by President Trump that the U.S. Mint will stop production of the penny is an idea that has been around for many years. 

CAGW reported in its Critical Waste Issues for the 115th Congress that the cost of production for the penny has been greater than one cent since 2011, when it was 2.4 cents.  It was 1.83 cents per penny in 2013 and 1.43 cents per penny in 2015.  Despite the losses on each penny, the U.S. Mint increased production of the penny by 51 percent between 2012 and 2017, despite two-thirds of pennies being out of circulation, according to the Government Accountability Office.

In 2023, it cost $3.07 to produce a penny and the U.S. Mint lost $179 million on their production.  CAGW’s report noted that suspending the penny for 10 years would save more than $1 billion.  The existing supply would satisfy demand, and if more are needed, the infrastructure would still be there to make more pennies.

Another reason for suspending or eliminating production of the penny is the less frequent use of cash by consumers.  Many businesses are migrating away from accepting cash, a trend that was accelerated by the pandemic.  CAGW has long understood that currency modernization should also include other forms of cash, including changing the composition of the nickel and replacing $1 notes with $1 coins, which would result in significant savings for the Treasury.

Turning pennies into dollars is one example of how DOGE and groups like CAGW can eliminate wasteful spending and make the government more efficient.  As CAGW President Tom Schatz said during his February 5, 2025, testimony before the House Government Oversight and Accountability Committee, “Increased efficiency will go a long way to restore the public’s confidence in the ability of the federal government to avoid as much waste, fraud, abuse, and mismanagement as possible.”