Penny Deactivation Under Treasury Purview, Not DOGE

The Department of Government Efficiency might be in the literal business of penny pinching, but doing away with the costly U.S. pennies might ultimately fall under the purview of Treasury Secretary Scott Bessent.

Amid the controversy of DOGE cutting waste, fraud, and abuse, a DOGE spokesman pointed Axios to the Treasury on whether the penny is going to be contracted from the U.S. mint.

"Shouldn't you ask Treasury?" the spokesman told Axios, when asked if the ending the penny was going to be a DOGE initiative.

DOGE did point out the cost of making a penny now nearly triples its actual worth, making it an obvious path for President Donald Trump's cost-cutting in his administration.

"The penny costs over 3 cents to make and cost US taxpayers over $179 million in FY2023," DOGE posted Jan. 21 on X. "The Mint produced over 4.5 billion pennies in FY2023, around 40% of the 11.4 billion coins for circulation produced.

"Penny (or 3 cents!) for your thoughts."

The half-cent was discontinued by the U.S. in 1857, marking the last time a coin was discontinued. Notably, that half-cent would now be worth nearly a quarter, according to Axios. Canada ended its penny in 2013.

Nickel and diming away American's cheapest coins might not be far-fetched in this modern economy. Just 16% of payments are not made in cash, and cash is no longer the most common form of payment even for purchases under $25, according to the report.

Bessent was officially sworn in as Treasury secretary this week. Axios reached out to Treasury for comment on whether the penny might be on the chopping block, but had not yet received a response.

Ending the penny could save the government around $100 million annually, The New York Times reported.

There have been bills introduced in the House and Senate to pinch the penny, or "alter the composition of circulating coins to reduce the cost of manufacturing them," but they have not passed in 2020 or 2023.

Musk's DOGE peeking into Treasury payment systems is making waves this weekend amid the transition from the Biden administration to Bessent, but Musk is noting some chilling findings.

"The @DOGE team discovered, among other things, that payment approval officers at Treasury were instructed always to approve payments, even to known fraudulent or terrorist groups," Musk posted Saturday on X.

"They literally never denied a payment in their entire career. Not even once."

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