Lawmakers Push for Cheaper Nickels After Penny's Demise

Congress is moving to address the rising costs associated with U.S. coinage, focusing next on the nickel after the recent efforts to phase out the penny. The bipartisan Common Cents Act, which passed both the House and Senate earlier this year, aims to eliminate the penny. Lawmakers are now urging the Treasury Department to study the feasibility of producing nickels with less expensive materials.

"If it costs 13 cents to make a five-cent coin, Washington should fix the problem instead of wasting more taxpayer money," said House GOP Conference Chair Lisa McClain, R-Mich., in a statement. "My bill gives Treasury a path to make nickels at a lower cost without disrupting how Americans use them. It is a simple reform that saves money and brings a little more common sense to government."

Senator Cynthia Lummis, R-Wyo., echoed this sentiment, noting the decreasing use of physical cash. "More and more Americans are paying with credit cards, debit cards, and stablecoins for everyday purchases that once would have been made with cash or coins," Lummis stated. "The half-cent coin was retired when it was no longer needed, and the penny has now reached that same point. It’s my hope that we can find a cheaper way to produce the nickel so that it remains economically viable for years to come."

According to recent data, the production of each nickel currently results in a loss of approximately eight cents for taxpayers. The coins are made from a mixture of 25% nickel and 75% copper. The Common Cents Act includes provisions to authorize a lower-cost nickel composition, provided that testing demonstrates reduced production costs without significantly impacting coin-operated machines.

Treasury Secretary Scott Bessent indicated in May 2025 that he believed the U.S. could potentially retool the nickel to reduce its production cost. The Trump administration projected immediate savings of $56 million from halting penny minting. However, the decision to cease penny production could be reversed by a future administration unless the Common Cents Act is signed into law. The White House has not commented on the president's plans regarding the bill.