Sponsors (2)
The bill reduces federal coin-production costs and gives the Mint flexibility (by ending penny circulation and permitting a cheaper nickel composition) at the expense of modest consumer price/rounding effects, potential equipment costs for businesses, and small cultural/communication downsides.
Taxpayers and the U.S. Mint would pay lower production and seigniorage costs because the Mint would stop producing pennies for general circulation and the Secretary could switch the nickel to a cheaper zinc-nickel composition.
Consumers and small businesses would avoid immediate transactional disruption because existing pennies remain legal tender and can continue to be used in commerce.
Consumers and small businesses could face slightly higher retail prices or changed checkout rounding outcomes if pennies are removed from circulation and rounding practices become common.
Businesses that operate vending machines, coin-counting devices, or other coin-handling equipment would incur retrofit or replacement costs if the nickel's metal composition is changed.
Coin collectors and members of the public who value tradition could face higher prices for numismatic pennies and perceive a loss of a cultural symbol if production shifts to sales-only minting.
Based on analysis of 2 sections of legislative text.
Stops production of pennies for general circulation and allows a zinc-core, nickel-clad five-cent coin if testing shows it lowers minting costs.
Ends production of the one-cent coin for general circulation and authorizes a new zinc-core, nickel-clad composition option for the five-cent coin if the Treasury Secretary determines it reduces production costs. The Mint may still produce pennies as numismatic items and existing pennies remain legal tender.
Introduced April 29, 2025 by Lisa C. McClain · Last progress April 29, 2025