Congress weighs ending nickel production after penny discontinued
On Oct. 7, 2026, the U.S. House of Representatives voted to consider legislation that would end the production of the five‑cent nickel, following the recent discontinuation of the penny.
The move could slash the cost of minting a coin that now costs roughly 13 cents to produce, a figure cited by lawmakers as an unnecessary burden on taxpayers. By directing the Treasury to study lower‑cost materials or a complete phase‑out, the bill aims to align coinage with modern payment habits and reduce wasteful spending.
Nickels are currently alloyed from 25% nickel and 75% copper, a composition that contributes to a per‑coin loss estimated at eight to 13 cents. The Treasury’s minting costs have risen even as cash usage declines, prompting calls for reform.
“If it costs 13 cents to make a five‑cent coin, Washington should fix the problem instead of wasting more taxpayer money,” Rep. Lisa McClain said. “My bill gives Treasury a path to make nickels at a lower cost without disrupting how Americans use them. It is a simple reform that saves money and brings a little more common sense to government.”
Senator Cynthia Lummis, who co‑sponsored the Senate version of the measure, echoed concerns about the shifting payment landscape. She noted that “more and more Americans are paying with credit cards, debit cards, and stablecoins for everyday purchases that once would have been made with cash or coins,” and added, “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.”
Treasury Secretary Scott Bessent has indicated that the department believes the nickel could be “retooled” with alternative materials, a step that could generate immediate savings similar to the $56 million projected from ending penny production.
The discussion comes less than a year after a mock funeral for the penny on Dec. 20, 2025, where actors in period costume carried a casket down the steps of the Lincoln Memorial, symbolizing the end of a two‑century‑old coin.
Lawmakers plan to task the Treasury with a feasibility study over the coming months, and the House will vote on the bill’s next stages later this year. If the study confirms cost‑effective alternatives, the nickel could see a new composition or a phased retirement, marking the second major change to U.S. coinage in under a year.
