WASHINGTON: US lawmakers want to cut the roughly 13-cent cost of producing a five-cent nickel through the Common Cents Act. Congress has passed the bill, which awaits President Donald Trump’s signature.
If enacted, the legislation would allow the US Department of the Treasury to approve cheaper nickel materials after testing.
Any replacement must reduce production costs while minimising disruption to vending machines and other equipment that accepts coins.
House Republican Conference Chairwoman Lisa McClain, a Republican from Michigan, urged the administration to address the expense.
“My bill gives Treasury a path to make nickels at a lower cost,” she told Fox News Digital. Currently, nickels contain 75% copper and 25% nickel. Producing each coin costs roughly eight cents.
Read: US Treasury Yield Hits 5.338%, Highest Since April 2002
Meanwhile, Senator Cynthia Lummis, a Republican from Wyoming, pointed to the growing use of cards and stablecoins for everyday purchases. She backed finding a cheaper composition to keep the nickel economically viable.
Alongside the nickel provisions, the bill would permanently halt penny production for general circulation, while retaining existing pennies as legal tender. Collectable versions could still be produced.
Read: US Stock Futures Slip as Oil and Treasury Yields Rise
The United States Mint stopped making circulating pennies on November 12, 2025. It estimates annual production savings of approximately $56 million from that decision.
For cash purchases, the legislation would permit rounding to the nearest five cents when exact change is unavailable. However, it would not require businesses to round payments.
Read: Saudi Pipeline Outage Threatens 4% of Global Oil Supply
Electronic payments and other non-cash transactions would retain their exact amounts. After the House passed it on September 14, the Senate approved the measure without amendment on September 28.
But the White House did not respond to a request for comment on when Trump might sign it. Congress has passed legislation that would permanently end circulating penny production and permit cheaper materials for nickels, pending Trump’s signature.
