President Donald Trump’s administration has already moved to stop producing new pennies, and now Washington is taking a closer look at another familiar American coin: the nickel.
That does not mean the nickel is about to disappear.
Instead, lawmakers are examining whether the U.S. government can continue producing five-cent coins without spending far more than the coins are actually worth.
It is a surprisingly expensive problem.
According to recent government figures cited by lawmakers, producing a single nickel costs approximately 13 cents. In other words, taxpayers are spending more than twice the coin’s face value every time the U.S. Mint makes one.
For lawmakers concerned about federal spending and government efficiency, that math is becoming increasingly difficult to ignore.
Congress Turns Its Attention to America’s Coins
The debate comes after Congress advanced bipartisan legislation aimed at permanently ending production of the penny.
The House and Senate approved the Common Cents Act, legislation designed to address the rising cost of manufacturing America’s smallest coins.
The measure still requires Trump’s signature to become law.
The Treasury Department had already announced that the U.S. Mint would stop producing pennies after manufacturing costs climbed to several times the coin’s one-cent value.
Now lawmakers want the administration to examine whether similar savings can be found with the nickel.
Rather than eliminating the five-cent coin, however, the current proposal would allow Treasury officials to explore cheaper materials that could keep the nickel in circulation while reducing the burden on taxpayers.
Why Does a Nickel Cost 13 Cents to Make?
The modern nickel is made from approximately 75% copper and 25% nickel.
Those metals, along with manufacturing and distribution expenses, have made the coin increasingly costly to produce.
If a five-cent coin costs around 13 cents to manufacture, the federal government effectively loses roughly eight cents on every new nickel it produces.
House Republican Conference Chair Lisa McClain of Michigan says that should concern taxpayers.
“If it costs 13 cents to make a five-cent coin, Washington should fix the problem instead of wasting more taxpayer money,” McClain said.
Her legislation would provide the Treasury Department with a path to develop a less expensive nickel while attempting to avoid major disruptions for consumers and businesses.
For Americans who believe Washington should be more careful with taxpayer dollars, it is an easy question to understand: Why should the government repeatedly spend 13 cents to manufacture something worth only five cents?
Could America Get a New Kind of Nickel?
One possible solution would be changing the metals used to manufacture the nickel.
Under the Common Cents Act, the Treasury Department could authorize a cheaper composition if testing determines that the new version would reduce production expenses without creating significant problems for existing coin-operated equipment.
That detail matters.
Vending machines, laundromats, parking equipment and other coin-operated systems are designed to recognize coins based on characteristics such as their size, weight and metallic composition.
A dramatic redesign could force businesses across the country to modify or replace equipment.
Lawmakers therefore appear to be searching for a middle ground: keep the nickel, but make it cheaper.
Trump Administration Already Targeted the Penny
The nickel debate comes after the Trump administration took action on the penny.
The Treasury Department announced that the U.S. Mint would stop making new pennies after production costs rose substantially above the coin’s face value.
The administration projected approximately $56 million in immediate savings from ending penny production.
Supporters of the move argue that continuing to manufacture money at a significant loss makes little financial sense, particularly at a time when the federal government faces continued pressure to reduce wasteful spending.
The question now is whether the same cost-cutting philosophy should be applied to other coins.
Americans Are Using Fewer Coins
Changes in the way Americans pay for everyday purchases are also shaping the debate.
Credit cards, debit cards, mobile payment systems and other electronic options have become increasingly common.
Sen. Cynthia Lummis of Wyoming, who helped lead the legislation in the Senate, pointed to that changing financial landscape.
“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,” Lummis said.
Physical money remains important to millions of Americans, particularly older consumers and people who prefer cash, but coins play a smaller role in many transactions than they once did.
That has prompted lawmakers to ask whether taxpayers should continue paying a premium to manufacture denominations that are being used less frequently.
America Has Retired Coins Before
Eliminating an American coin would not be unprecedented.
The United States stopped producing the half-cent coin in 1857 after changing economic conditions made the denomination increasingly unnecessary.
Supporters of ending the penny believe history has repeated itself.
As prices have risen over generations, the purchasing power of one cent has fallen dramatically. At the same time, manufacturing costs have increased.
Lummis said she hopes the government can avoid taking the same step with nickels by finding a cheaper production method.
“The half-cent coin was retired when it was no longer needed, and the penny has now reached that same point,” she said.
She added that she hopes officials can develop a less expensive way of manufacturing the nickel so the coin remains economically viable.
Treasury Secretary Supports a Cheaper Nickel
Treasury Secretary Scott Bessent has previously expressed support for finding a less costly way to produce the nickel.
In 2025, Bessent said the United States could potentially “retool” the coin.
That would likely mean changing its metallic composition instead of eliminating it altogether.
Such a move could allow the nickel to remain part of the U.S. currency system while lowering the amount taxpayers spend to manufacture each coin.
For supporters of smaller government and tighter federal budgets, even relatively modest savings can become significant when multiplied across millions of coins.
Are Nickels Actually Going Away?
For now, there is no indication that the Trump administration is preparing to eliminate the nickel.
The immediate goal is reducing its manufacturing cost.
That distinction is important.
The penny and nickel face similar economic problems because both cost more than their face value to produce, but lawmakers have taken different approaches to the two coins.
The penny is moving toward retirement.
The nickel is being considered for a makeover.
If Treasury officials can develop a cheaper version that works with existing machines and remains practical for Americans, the five-cent coin could remain in circulation for years.
What Happens to the Penny?
Congress has already approved legislation addressing penny production, but Trump still has to sign the bill for its provisions to become permanent law.
The administration has separately stopped production through Treasury Department action.
However, legislation would provide a more lasting solution because a future administration could potentially reverse an executive-branch policy.
That makes Trump’s decision on the Common Cents Act an important next step.
The White House has not publicly announced when the president will act on the legislation.
A Small Coin Raises a Bigger Question About Government Spending
A nickel may seem insignificant compared with the enormous sums Washington spends every year.
But supporters of the reform argue that responsible government spending has to start somewhere.
If taxpayers are spending approximately 13 cents to manufacture a coin worth five cents, critics say the federal government should look for a better solution.
That does not necessarily mean Americans will have to say goodbye to the nickel.
Instead, the familiar five-cent coin could eventually look the same on the outside while being made from cheaper materials.
The broader debate reflects a familiar concern among taxpayers: whether Washington is doing enough to eliminate unnecessary costs, even when those costs appear small individually.
Millions of coins can turn pennies in savings into millions of dollars.
And as the Trump administration continues looking for ways to reduce government expenses, even the loose change in America’s pockets is now part of the conversation.