The Coin USAPenny's Gone — Now the Nickel Is on the Chopping Block
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The penny's funeral isn't even over — the Common Cents Act has cleared both chambers of Congress and is still waiting for the President's signature — and Washington has already picked its next target: the nickel.
Short version: it costs about 13 cents to make a 5-cent nickel, and lawmakers are now pressing the Treasury to retool it with cheaper materials. If that happens, today's copper-nickel nickels could become the "old composition" coins of the future. Here's what's going on and what it means for collectors.
The Numbers Behind the Push
The math is hard to argue with:
- ~13 cents — the approximate cost to produce one 5-cent nickel (per Fox News Digital reporting, October 2026), meaning taxpayers lose roughly 8 cents on every nickel the Mint strikes.
- 25% nickel, 75% copper — the current alloy of the coin, largely unchanged since the Civil War era.
- The penny, by comparison, cost 3.69 cents to make — and that was enough to get it eliminated.
"If it costs 13 cents to make a five-cent coin, Washington should fix the problem instead of wasting more taxpayer money," House GOP Conference Chair Lisa McClain told Fox News Digital. Sen. Cynthia Lummis, who led the penny bill in the Senate, and Oklahoma lawmakers Sen. James Lankford and Rep. Frank Lucas have pushed the same message: find a cheaper way to make the nickel.
What the Bill Actually Does
The Common Cents Act (H.R. 10167) — the same legislation that ends routine penny production — also authorizes the Treasury and the US Mint to test lower-cost nickel compositions, provided testing shows they cut costs without disrupting vending machines and other coin-operated equipment. Treasury Secretary Scott Bessent has previously said the nickel could be "retooled," and the Mint stopped routine penny production in December 2025, a move the Treasury estimated would save about $56 million.
As of this writing, the bill has passed the House and cleared the Senate by unanimous consent but has not yet been signed into law — so the nickel study is authorized but the clock hasn't officially started. See our penny guide for the full picture on what Congress already decided.
What Would a Cheaper Nickel Mean for Collectors?
Nothing is decided yet — but collectors have seen this movie before, and it has a familiar script:
- Old-composition coins become interesting. When the US switched dimes and quarters from silver to clad in 1965, the "old" silver coins became some of the most collected coins in American history. If the nickel's alloy changes, today's 25%-nickel coins could one day be the "original composition" coins collectors hunt for.
- Melting is still illegal — don't. It is worth saying plainly: US law prohibits melting pennies and nickels for their metal value. Any "melt value" talk about nickels is speculation about the future, not something you can act on today.
- No rush, but know what you have. A composition change would take years of testing and legislation. The smart collector move right now is simply awareness: keep an eye on the Treasury's testing announcements, the same way smart collectors watched the penny debate for two years before Congress acted.
- War nickels are the precedent to study. From 1942–1945, nickels were struck in 35% silver because nickel was needed for the war. Those silver war nickels are still pulled from circulation by collectors today. History suggests composition-change coins earn a permanent premium in the hobby.
The Bottom Line
The penny fight taught collectors a lesson: by the time Congress acts, the interesting window for collectors is already closing. The nickel debate is in its early stages — the bill isn't even signed yet — which makes this the moment to start paying attention, not the moment to panic. We'll update this article as the Treasury's testing plans take shape.