Updated
Updated · Newsweek · Aug 18
Congress Advances 5-Cent Nickel Redesign as Mint Spends 13.31 Cents to Make Each Coin
Updated
Updated · Newsweek · Aug 18

Congress Advances 5-Cent Nickel Redesign as Mint Spends 13.31 Cents to Make Each Coin

3 articles · Updated · Newsweek · Aug 18

Summary

  • Separate House and Senate versions of the Common Cents Act have passed, moving Congress toward letting the U.S. Mint remake the nickel with a zinc core and nickel outer layer.
  • The push follows steep losses at the Mint: producing and distributing each nickel cost 13.31 cents in fiscal 2025, while 202 million nickels generated a $17.7 million Treasury loss in 2024.
  • Lawmakers are pursuing a redesign rather than elimination after penny production ended in November 2025, because dropping the nickel would make the dime the smallest cash denomination and expand rounding.
  • A Richmond Fed analysis estimated penny-only rounding costs consumers about $6 million a year; eliminating the nickel too could lift that to nearly $56 million.
  • Cash still accounted for 14% of consumer payments in 2025, with heavier reliance among older, rural, lower-income and unbanked Americans, making the nickel debate part of a broader fight over cash access.

Insights

With pennies gone and nickels costing more than their face value, is America quietly engineering a completely cashless society?
If new cheaper metals alter the nickel, who will bear the massive cost of fixing millions of broken vending machines nationwide?
As states create their own rounding rules, could paying with cash soon cost you different amounts depending on where you live?