Neither Social Security nor IRS: all Americans have it in their pocket and it is the next target of Elon Musk’s DOGE
Elon Musk’s new Department of Government Efficiency has its sights set on slashing federal spending

Elon Musk’s Department of Government Efficiency (DOGE) has identified a new priority in its quest to slash federal spending: the humble American penny.
In a post on X this Tuesday, DOGE noted that the United States spends roughly three cents to mint each penny—even though its face value is, of course, just one cent.
“The penny costs over three cents to make and cost US taxpayers over $179 million in FY (Fiscal Year) 2023,” DOGE wrote. “The Mint produced over 4.5 billion pennies in FY 2023, around 40% of the 11.4 billion coins for circulation produced.”
DOGE aiming to cut costs
By highlighting the penny’s high production cost, DOGE is taking aim at an issue that has fueled debate for years. In 2016, it cost the U.S. around 1.5 cents to make each penny—less than half of what it costs to produce one now.
Still, the $179 million spent on pennies is relatively minor compared to DOGE’s larger mandate to cut federal spending. Former President Donald Trump claims that DOGE will make recommendations to “reduce excessive regulations, slash unnecessary spending, and restructure federal agencies,” while Musk has stated the group’s goal is to reduce federal outlays by $500 billion annually.
DOGE Co-Chair Vivek Ramaswamy recently announced he will leave the organization. In a social media post on January 20, Ramaswamy said he is stepping aside to run for governor of Ohio.
On Monday, President Trump signed an executive order formally establishing DOGE as part of the executive branch, focused on modernizing government technology systems to “maximize efficiency and productivity.”
The Rising Cost of the Penny
Over the last year, penny-related expenses have continued to climb. According to the U.S. Mint’s 2024 annual report, minting and distributing a penny now costs about 3.7 cents. Pennies are mostly zinc, coated in copper which gives them their familiar color. The Federal Reserve Bank of St. Louis reports that the cost per metric ton has doubled since 2016.
Past proposals have suggested suspending penny production. In 2015, former Treasury Secretary Jacob Lew floated the idea. Some economists also advocate pulling pennies out of circulation, although a 2020 blog post from the Federal Reserve Bank of Richmond cautioned that rounding transactions to the nearest nickel could lead to significant price changes—especially for low-cost goods.
Other countries have already done away with their one-cent coins. Canada, for instance, stopped minting pennies in 2012. A 2018 economic analysis found that Canadian consumers ended up paying about 3.27 million Canadian dollars ($2.2 million US) more per year at supermarkets due to price rounding.
Up next for Musk: the nickel?
DOGE may then look to widen its scope beyond the penny, since it’s not the only coin that costs more to produce than it’s worth. The U.S. Mint’s 2024 annual report notes it currently spends about 14 cents to make and distribute each nickel—another small piece of pocket change that could be on DOGE’s chopping block.
Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.
Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.