**Sen. Joni Ernst Advocates for Penny Overhaul to Cut Government Waste**

In a bold move aimed at curbing unnecessary government spending, Sen. Joni Ernst (R-Iowa) has proposed targeting the penny for potential savings. Ernst highlighted the inefficiencies associated with penny production in a letter addressed to Elon Musk and Vivek Ramaswamy, who head the newly instituted Department of Government Efficiency (DOGE). This effort aligns with the larger goal of the Trump administration to reduce spending by $2 trillion.

Citing the U.S. Mint's annual performance plan, Ernst noted that the government incurs a cost of over three cents to produce a single penny and more than eleven cents for a nickel, a practice she deems wasteful. She suggested that altering the composition of these coins could save upwards of $50 million annually.

While Ernst did not explicitly call for the abolition of the one-cent coin, her remarks have reignited the longstanding debate over its utility. Mark Weller, the executive director of Americans for Common Cents, countered Ernst’s argument by pointing out that the perceived excess cost of producing pennies is largely due to how the U.S. Mint allocates overhead costs. According to Weller, over 50% of the coins the Mint plans to ship this year will be pennies. His organization, financially supported by Artazn—a Tennessee firm that manufactures the metal disks used to make pennies—does not support the elimination of the coin, stating that it wouldn’t result in substantial savings.

The conversation around penny elimination is not new. Notably, countries like Canada, New Zealand, and Australia ceased production of their one-cent coins over a decade ago. The U.S. Mint itself has acknowledged that making pennies and nickels has been a losing venture for 18 years. Most of these coins do not reenter circulation after being used, yet businesses must keep them on hand for transactions.

Economic considerations extend beyond mere production costs. Weller warns that eliminating pennies could prompt price rounding, potentially leading to inflationary perceptions among consumers. Additionally, pennies play a crucial role in America's cash-based transactions, which are vital for many individuals without access to credit or debit cards.

As the debate continues, the DOGE, driven by its agenda of governmental efficiency, will likely weigh in on whether one-cent coins should remain in circulation or be phased out in favor of modernized, cost-effective practices.