After rising costs led to the discontinuation of newly minted pennies, similar concerns have surfaced regarding the cost-to-value ratio of the nickel.
In a piece of legislation that passed this week in the House, lawmakers approved research into a five-cent piece created with less expensive metals.
According to The Hill:
The nickel, like the penny, is expensive to produce. It cost 13.31 cents to produce a single nickel in fiscal year 2025, down slightly from 13.78 cents in fiscal year 2024. Last year marked 20 consecutive years that nickel production costs remained above the coin’s face value.
ADVERTISEMENTUnder the Common Cents Act, the Treasury would be allowed to “test a redesigned, lower-cost nickel that must ensure it saves money while continuing to work in vending machines,” a press release from Rep. Robert Garcia (D-Calif.) explains.
Nickels contain hardly any nickel at all. According to the U.S. Mint, a five-cent piece is only 25% nickel, with the rest made of copper. The high cost of copper was blamed in part for the increased cost of producing a penny, which is just 2.5% copper.
The development sparked some social media interest:
They start with pennies then next thing you know it’s all digital.
— Beenit&Dunnit (@Justawitnesspdx) July 16, 2026
Get (and hold) nickels while you still can. Even the current-day nickel is actually worth 7¢ in nickel and copper content. (The pre-1983 penny contains 4¢ of copper and zinc.)https://t.co/I8cl09ejvA https://t.co/WUefap41Gs
— The Lipstick Libertarian 💄✌🏽🍉 (@JackyCavendish) July 15, 2026
As long as this isn't a slippery slope towards a cashless society for an only Digital Currency.
— Mike (@mr990a) July 15, 2026
CBS News provided additional details about the legislation:
The Common Cents Act, a response to the phase-out of the pennythat lets businesses round cash transactions to the nearest nickel, was passed by the House of Representatives on Tuesday and now moves to the Senate for consideration.
It would create rounding guidelines for businesses and consumers to lean on for cash transactions when they do not have exact change on hand. Currently, establishments are vulnerable to litigation if they fail to provide customers with exact change, even when they round up in a patron’s favor.
ADVERTISEMENTBusiness advocacy groups praised its passage on Tuesday. The National Restaurant Association called it “a win for restaurant operators who have been contending with the phase out of the penny.”
“When a customer pays in cash and a register doesn’t have a penny available to give exact change, it can create a legal liability for businesses,” National Restaurant Association chief advocacy officer Sean Kennedy told CBS News.
Here’s a relevant explainer video:
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