The five-cent coin currently costs about 13 cents to produce, or eight cents more than its face value, according to lawmakers and a Fox News Digital report. "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, R-Mich., told Fox News Digital.
Support for ending nickel production altogether remains unclear at this point, the report stated. The Senate action marks the first time in decades that Congress has moved to formally retire a circulating U.S. coin, according to the bill text.
Background: Common Cents Act and Penny Elimination
The Common Cents Act is a bipartisan measure to formally end production of the copper penny, according to the bill text. The legislation includes procedures for stores to use as pennies are phased out and allows transactions to be rounded to the nearest five cents, the text states. The Mint reported that it produced 3.2 billion pennies in 2024 alone, and existing pennies remain legal tender and in circulation.
Some states are already bracing for a post-penny world. New Jersey introduced a rounding law in June that stores could use, according to Fox News Digital. The rules apply only to cash transactions, officials said, while digital payments, wire transfers, and other non-cash transactions would still be charged down to the exact cent.
The legislation created a precise formula for how shops would round off totals. Per the bill, totals that end in one, two, six or seven would be rounded down, the text states. Totals that end in three, four, eight or nine would be rounded up, according to the same text. As The New American reported, the House and Senate have passed separate versions of the Common Cents Act, but the texts differ [1].
Nickel Production Costs and Treasury Study
The five-cent coin currently costs taxpayers eight cents more per coin, according to the Fox News Digital report. McClain cited the 13-cent production cost in her comments to Fox News Digital. "My bill gives Treasury a path to make nickels at a lower cost without disrupting how Americans use them," McClain told Fox News Digital. "It is a simple reform that saves money and brings a little more common sense to government."
The Common Cents Act authorizes a lower-cost nickel composition if testing shows that production costs can be reduced without significantly disrupting coin-operated machines, according to a news release from McClain.
The U.S. Mint reported that it took 3.02 cents to produce a penny in fiscal year 2025, and 13.31 cents for a nickel, according to NJ.com [2]. For two decades, the nickel has cost more to produce than its face value, according to the same report. Support for ending nickel production altogether remains unclear, the Fox News Digital report stated.
Rounding Rules and State Preparations
The bill creates a formula for cash rounding. Per the bill, totals that end in one, two, six or seven round down, while totals ending in three, four, eight or nine round up, according to the bill text. Rounding applies to cash transactions only, officials said. Digital payments, wire transfers and other non-cash transactions remain charged to the exact cent, according to officials.
New Jersey's rounding law introduced in June is among state-level preparations for a post-penny world, according to the Fox News Digital report. Current pennies remain valid, and there are no changes for coins already in circulation, the Mint reported. The Mint reported that it produced 3.2 billion pennies in 2024 alone.
The Center Square reported that some businesses have been preparing for months, stockpiling bags of the 1-cent coin [3]. Others have created rounding systems to arrive at the nearest nickel, according to the same report.
What's Next for the Nickel and U.S. Coinage
The Common Cents Act now awaits President Donald Trump's signature after Senate passage, according to Fox News Digital. If signed, the Treasury study would determine whether cheaper nickel materials can be used without disrupting coin-operated machines, the release stated.
Whether Congress will move to eliminate nickel production altogether remains unclear, and no vote on that step has been reported. The New American reported that America has already minted its last circulating penny and that existing pennies would remain legal tender [1].
The story was written with information from Fox News Digital and previous reporting by LiveNOW from FOX; reported from Orlando.
References
- Common Cents Act Rewrites the Rules of Cash After the Penny’s Demise. https://thenewamerican.com/us/common-cents-act-rewrites-the-rules-of-cash-after-the-pennys-demise/
- What’s next after penny production ended? House proposal calls for new .... https://www.nj.com/news/2026/07/whats-next-after-penny-production-ended-house-proposal-calls-for-new-nickel.html
- As pennies disappear, businesses turn to hoarding, rounding. https://yournews.com/2025/11/18/4990673/as-pennies-disappear-businesses-turn-to-hoarding-rounding/
Explainer Infographhic
Please contact us for more information.
