Congress proposes study to lower nickel production costs after eliminating the penny

Congress is moving to address the high cost of producing the U.S. nickel after earlier legislation aimed at ending the penny. The bipartisan Common Cents Act, which has cleared both chambers but awaits the president’s signature, would require the Treasury Department to evaluate alternative metal compositions that could reduce the minting expense of the five-cent piece.

Nickels currently cost about 13 cents to produce, resulting in a loss of roughly eight cents per coin. They are made from a 25% nickel and 75% copper alloy. Lawmakers say a lower-cost alloy could be adopted if testing shows it would not interfere with coin-operated machines such as vending machines.

"If it costs 13 cents to make a five-cent coin, Washington should fix the problem instead of wasting more taxpayer money," House GOP Conference Chair Lisa McClain said.

"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," Senator Cynthia Lummis added, noting that the half-cent was retired when it became unnecessary and suggesting the nickel may face a similar fate.

The Treasury Secretary indicated the agency could "retool" the nickel to lower production costs. The Trump administration previously projected $56 million in savings from halting penny production, but the new proposal still requires presidential approval. The White House has not commented on the timing of a possible signature.