House-Passed Measure Could Impact Five-Cent Coin Production

The U.S. House of Representatives has passed an amended version of H.R. 3074, titled the Common Cents Act, and sent the measure to the Senate for consideration. The measure, introduced on April 29, 2025, focuses primarily on the elimination of the one-cent coin (penny) from circulation. The altered proposal incorporated the five-cent coin (nickel) and could have a bearing on that coin’s future.

The penny and nickel have long been cited as being too expensive to produce. According to the U.S. Mint’s 2025 annual report, "In FY 2025-unit costs for the penny (3.02 cents) and the nickel (13.31 cents) were higher than their face value for the 20th consecutive fiscal year. In contrast, the unit costs of the dime and quarter-dollar remained below their face value."

The bill calls for stopping distribution of the cent, an action already taken by Secretary of the Treasury Scott Bessent without Congressional support. Further, H.R. 3074 spells out the practice of rounding up and rounding down and provides guidance for businesses affected by the action. The five-cent coin was not part of the initial proposal but has been added due to the fact that more nickels will now play a bigger role in daily commerce.

Because the nickel is a repeat offender in excessive production cost, H.R. 3074 proposes steps to reduce the cost of producing the coin. The five-cent coin is currently composed of 75% copper and 25% nickel, as mandated in the Coinage Act of May 16, 1866. Under the proposal, copper would be replaced by zinc and the final composition percentages would be determined by the Secretary of the Treasury after extensive study and appropriate testing.

According to the Mint’s annual report, "FY 2025 average spot prices for nickel were $15,441.57 per tonne, average zinc prices were $2,839.69 per tonne and average copper prices were $9,453.50 per tonne." The report gives clear indication that zinc is a more cost-effective solution that could bring production cost in line.

The measure cites a need to ensure that the new composition "has a minimal impact on machines designed to accept coins."

Since 2012, the U.S. Mint has been submitting biennial reports to Congress as required by Public Law 111-302 (Coin Modernization, Oversight and Continuity Act of 2010) with respect to metallic composition. In the 2024 report, the Mint urged support of H.R. 1278, the Coin Metal Modification Authorization and Cost Savings Act. No action has been taken on the measure, introduced by Representative Mark Amodei on February 13, 2025.