DOGE Has a New Target: The U.S. Penny



The newly-created Department of Government Efficiency (DOGE) has a new target in its sights for trimming federal spending: the U.S. penny. It turns out that the U.S. spends about 3¢ to mint each penny, costing taxpayers over $179 million in 2023. During the past year, the penny’s costs have only continued to rise, with the U.S. Mint’s 2024 annual report finding that one cent now costs about 3.7¢ to manufacture and distribute. Pennies are mostly made of zinc, with a copper overlay to give them their distinct color. While zinc’s price fluctuates from year to year, its cost per metric ton is now double what it was in 2016. Federal officials have proposed suspending the penny in prior years, but there could be a costly downside to ditching the coin. Transactions would then be rounded up in 5¢ increments, which means for a single item or small-value purchase, there could be a significant price increase. Canada stopped minting its one-cent coin in 2012, causing consumers to pay about $3.27 million in additional Canadian dollars at grocery stores each year due to rounded up prices. DOGE might want to set its sights beyond the lowly penny, as it’s not the only coin that costs more to make than it’s worth. The U.S. Mint’s 2024 annual report noted that it spends about 14¢ to make and distribute each nickel.