US Penny Costs 4 Cents To Make. But For Souvenir Sellers, It's A Living

New York:

Donald Trump is envisioning significant changes during his potential second term in office. However, he is also addressing smaller issues, such as the production of pennies.

Trump recently directed the Treasury Department to cease the production of pennies due to the fact that it costs the government more than a cent to make each coin, almost 4 cents in today’s economy. This decision has sparked discussions about the future of the penny and its impact on various sectors.

While there is no confirmation that the U.S. Mint will discontinue pressing pennies in Denver and Philadelphia, the announcement has already affected a niche market centered around the wholesale purchase of pennies for machines that imprint designs on them at fun fairs.

The disappearance of the penny could potentially jeopardize this industry, which relies on the availability of pre-1982 copper pennies for its operations.

Despite the ongoing debate about the relevance of the penny in modern commerce, some individuals are passionate about preserving this iconic coin. Critics argue that the cost of producing pennies outweighs their value, while proponents highlight the historical and economic significance of small change in the monetary system.

Regardless of the outcome, the future of the penny remains uncertain as discussions continue about its role in today’s digital economy.

See also Eliminating Waste, Fraud, and Abuse in Medicaid My Administration has been relentlessly committed to rooting out waste, fraud, and abuse in Government programs to preserve and protect them for those who rely most on them. The Medicaid program was designed to be a program to compassionately provide taxpayer dollars to healthcare providers who offer care to the most vulnerable Americans. To keep payments reasonable, billable costs for such care were historically capped at the same level that healthcare providers could receive from Medicare. The State and Federal Governments jointly shared this cost burden to ensure those of lesser means did not go untreated. Under the Biden Administration, States and healthcare providers were permitted to game the system. For example, States "taxed" healthcare providers, but sent the same money back to them in the form of a "Medicaid payment," which automatically unlocked for healthcare providers an additional "burden-sharing" payment from the Federal Government. Through this gimmick, the State could avoid contributing money toward Medicaid services, meaning the State no longer had a reason to be prudent in the amount of reimbursement provided. Instead of paying Medicare rates, many States that utilize these arrangements now pay the same healthcare providers almost three times the Medicare amount, a practice encouraged by the Biden Administration. These State Directed Payments have rapidly accelerated, quadrupling in magnitude over the last 4 years and reaching $110 billion in 2024 alone. This trajectory threatens the Federal Treasury and Medicaid's long-term stability, and the imbalance between Medicaid and Medicare patients threatens to jeopardize access to care for our seniors. I pledged to protect and improve these important Government healthcare programs for those that rely on them. Seniors on Medicare and Medicaid recipients both deserve access to quality care in a system free from the fraud, waste, and abuse, that enriches the unscrupulous and jeopardizes the programs themselves. We will take action to continue to love and cherish the Medicare and Medicaid programs to ensure they are preserved for those who need them most. The Secretary of Health and Human Services shall therefore take appropriate action to eliminate waste, fraud, and abuse in Medicaid, including by ensuring Medicaid payments rates are not higher than Medicare, to the extent permitted by applicable law. This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP