It costs 13 cents to produce the five-cent coin. Congress wants the U.S. to explore more cost-effective methods.
The U.S. nickel may be heading for a makeover as Congress takes a fresh look at the coin’s expense.
With the U.S. ending penny production last year, the House and Senate recently approved two versions of the Common Cents Act to provide a rounding framework for cash transactions in the absence of 1-cent coins.
Beyond its rounding provisions, the legislation could also tweak federal law pertaining to the nickel’s specifications, allowing the Treasury Department to explore zinc as a copper replacement as a way to lower the coin’s production cost. President Donald Trump has not commented on the legislation but early last year directed the Treasury to stop minting pennies.
A nickel is actually 75% copper with the rest being nickel, according to the U.S. Mint. Its weight is set at 5 grams by law, but the Common Cents Act would allow a retooled nickel to weigh 4 to 6 grams.
“In 1866, Congress mandated the nickel be produced from an alloy of copper and nickel, and we haven’t updated the composition since,” Oklahoma Republican Rep. Frank Lucas said last month on the House floor, supporting changes to the nickel as he encouraged colleagues to approve the Common Cents Act.
The legislation awaits a second House vote due to a slight change in the Senate version.
3 cents to produce in the 2025 fiscal year, the 20th consecutive year above its face value, the Mint said in its latest annual report .
Source link







