Full Breakdown
Congress Pushes Study of Cheaper Nickel After Penny Phase-out
By Drooid · · How we work
Legislative Action on Nickel Composition
The House and Senate each passed the bipartisan Common Cents Act earlier this year. The bill directs the Treasury Department to test lower-cost metal blends for the five-cent piece. If testing confirms reduced production expenses without disrupting vending-machine operations, the Treasury could adopt the new composition. The legislation awaits President Donald Trump’s signature to become law.
Background: Penny Elimination and Cost Pressures
In December 2025 the Treasury Department announced it would cease minting pennies, noting that each cent cost more than three times its face value to produce. The decision follows a long-standing debate about the penny’s utility as cash usage shifts toward cards and digital payments. With the penny slated for retirement, lawmakers are turning attention to the nickel, which currently loses roughly eight cents per coin for taxpayers.
Official Statements & Responses
- **Sen.
- Scott Bessent, Treasury Secretary, told Fox News in May 2025 that the United States could “retool” the nickel to lower production costs.
Data & Statistics
- Current nickel composition: 25 % nickel, 75 % copper.
- Production loss: ? $0.08 per coin.
- Treasury’s 2025 projection: ending penny minting would save $56 million immediately.
What’s Next
The bill’s enactment hinges on President Trump’s signature; the White House has not commented on timing. Critics note that any future administration could reverse the decision, underscoring the bill’s reliance on executive approval.
Verbatim Quotes
- “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," Lummis said.” — Sen. Cynthia Lummis