The penny has already stopped being produced for everyday circulation, ending a tradition that lasted more than 200 years. Now lawmakers are turning their attention to another familiar coin that costs more to make than it’s actually worth.
This time, it’s the nickel. Despite its face value of just five cents, producing one costs the federal government about 13 cents.
Congress is considering ways to lower that cost, potentially changing how the nickel is made without getting rid of it altogether.
Why the nickel costs more than it’s worth
According to Fox News, lawmakers are pushing changes to nickel production after Congress passed legislation to formally end penny production.
The nickel is currently made from 75% copper and 25% nickel. Between materials and manufacturing, the government spends roughly eight cents more to produce each coin than its value.
The penny faced a similar problem. Before production stopped, it cost approximately 3.7 cents to manufacture a coin worth just one cent.
Congress wants to make the nickel cheaper
The bipartisan Common Cents Act, which has passed both chambers of Congress but has not yet been signed into law, would allow the Treasury Department to explore less expensive materials for producing nickels.
One option is to replace the current copper-heavy mixture with a zinc center and an outer nickel layer.
Any new design would need to reduce manufacturing costs without causing major problems for vending machines and other coin-accepting equipment.
For now, lawmakers are focused on making nickel cheaper to produce rather than eliminating it.
Related: 15 Rare Nickels That Could Be Worth Far More Than Five Cents
What does this mean for the change in your wallet?
If the government eventually changes the nickel’s composition, Americans can still use their existing coins. The proposed changes concern how new nickels are manufactured, not whether existing coins are worth anything.
The penny is a different story. Although no new pennies are being produced for general circulation, existing pennies remain legal tender.
As pennies become less available, businesses may need to round cash transaction totals to the nearest five cents. Electronic payments would still be calculated to the exact cent.
For now, you don’t need to do anything with the nickels in your wallet or change jar.
The bigger question is whether the government can make a five-cent coin without spending more than twice its value to produce it.
