Skip to content
Search

Latest Stories

Top Stories

Congress Bill Spotlight: Suspending Pennies and Nickels for 10 Years

News

Jar full of american coins.

Jar full of american coins.

Getty Images, MariuszBlach

The Fulcrum introduces Congress Bill Spotlight, a report by Jesse Rifkin, focusing on the noteworthy legislation of the thousands introduced in Congress. Rifkin has written about Congress for years, and now he's dissecting the most interesting bills you need to know about but that often don't get the right news coverage.

Trump recently discontinued production of the one-cent coin. What about the five-cent coin too?


What the bill does

A new bill in Congress would suspend production of both the penny and nickel for 10 years. The bill also contains a provision clarifying that all existing pennies and nickels ever produced would continue to remain as legally usable money.

It was introduced on February 12 by Rep. David Schweikert (R-AZ1). The bill does not appear to have an official title.

Context

In fiscal year 2024, each penny cost 3.7 cents to produce, more than triple its face value. So on February 9, President Donald Trump announced that he was suspending the production of the penny for an indefinite period of time. (Again, existing pennies can still be used.)

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful!” Trump posted on Truth Social. “I have instructed my Secretary of the US Treasury to stop producing new pennies. Let's rip the waste out of our great nation's budget, even if it's a penny at a time.”

Even some congressional Democrats supported the move. Rep. Schweikert introduced his bill three days later.

However, some worry that suspending only the penny may inadvertently increase government losses on coin production, by deepening reliance on nickels. Nickels cost 13.8 cents each, so the government actually loses far more on each nickel than on each penny: about 8.8 cents versus 2.7 cents.

What supporters say

Supporters argue in part by citing history. The U.S. last discontinued a coin’s production due to low value with the half-penny or “haypenny” in 1857. However, adjusted for inflation, it was worth more than 17 cents today – the financial equivalent of discontinuing the penny, nickel, and dime due to low values.

Supporters now argue that we should discontinue the penny and nickel but keep producing the dime and quarter because those two actually earn money. Each dime currently costs 5.8 cents, while each quarter costs 14.7 cents – both well below their face value.

Treasury Secretary William E. Simon even advocated suspending the penny back in 1976.

Noting “the diminishing utility of the one-cent denomination in commerce,” Simon wrote, “the United States government is rapidly approaching a decision point concerning continuance of the one-cent coin.” He argued for doing so in the 1970s or 1980s: “Elimination of the cent at some later date would be a much more drastic action than elimination now.”

What opponents say

Opponents counter that the bill is self-serving.

Rep. Schweikert represents Arizona, which produces about 70% of U.S. copper. Only the penny’s razor-thin outer coating is made of copper, but the actual coin is 97.5% zinc versus only 2.5% copper. Vice versa, despite literally being named a “nickel,” the five-cent coin is only 25% nickel versus 75% copper.

In other words, switching from pennies to nickels would require considerably more copper production – primarily benefiting Arizona. Little surprise that Arizona politicians have historically ranked among the biggest proponents of ending the penny in years past.

In 2006, then-Rep. Jim Kolbe (R-AZ8) introduced the COIN (Currency Overhaul for an Industrious Nation) Act. In 2017, then-Sen. John McCain (R-AZ) introduced the similarly-named COINS (Currency Optimization, Innovation, and National Savings) Act. Neither received a vote.

Odds of passage

The new bill has not yet attracted any cosponsors, not even any Republicans. While lead sponsor Rep. Schweikert is a Republican, the bill isn’t particularly partisan in substance.

It awaits a potential vote in the House Financial Services Committee, controlled by Republicans. No Senate companion version appears to have been introduced yet.

Back in 2011, Rep. Schweikert also introduced a bill to replace the production of dollar bills with dollar coins within four years. (Currently, dollars are produced as both bills and coins.) The legislation never received a vote.

Jesse Rifkin is a freelance journalist with the Fulcrum. Don’t miss his report, Congress Bill Spotlight, on the Fulcrum. Rifkin’s writings about politics and Congress have been published in the Washington Post, Politico, Roll Call, Los Angeles Times, CNN Opinion, GovTrack, and USA Today.

SUGGESTIONS:

Congress Bill Spotlight: Trump’s Birthday and Flag Day Holiday Establishment Act

Congress Bill Spotlight: Donald J. Trump $250 Bill Act

Congress Bill Spotlight: Impeaching Judges Who Rule Against Trump

Read More

Yes, They Are Trying To Kill Us
Provided

Yes, They Are Trying To Kill Us

In the rush to “dismantle the administrative state,” some insist that freeing people from “burdensome bureaucracy” will unleash thriving. Will it? Let’s look together.

A century ago, bureaucracy was minimal. The 1920s followed a worldwide pandemic that killed an estimated 17.4–50 million people. While the virus spread, the Great War raged; we can still picture the dehumanizing use of mustard gas and trench warfare. When the war ended, the Roaring Twenties erupted as an antidote to grief. Despite Prohibition, life was a party—until the crash of 1929. The 1930s opened with a global depression, record joblessness, homelessness, and hunger. Despair spread faster than the pandemic had.

Keep ReadingShow less
Millions Could Lose Housing Aid Under Trump Plan

Photo illustration by Alex Bandoni/ProPublica. Source images: Chicago History Museum and eobrazy

Getty Images

Millions Could Lose Housing Aid Under Trump Plan

Some 4 million people could lose federal housing assistance under new plans from the Trump administration, according to experts who reviewed drafts of two unpublished rules obtained by ProPublica. The rules would pave the way for a host of restrictions long sought by conservatives, including time limits on living in public housing, work requirements for many people receiving federal housing assistance and the stripping of aid from entire families if one member of the household is in the country illegally.

The first Trump administration tried and failed to implement similar policies, and renewed efforts have been in the works since early in the president’s second term. Now, the documents obtained by ProPublica lay out how the administration intends to overhaul major housing programs that serve some of the nation’s poorest residents, with sweeping reforms that experts and advocates warn will weaken the social safety net amid historically high rents, home prices and homelessness.

Keep ReadingShow less
Trump’s Ultimatums and the Erosion of Presidential Credibility

Donald Trump

YouTube

Trump’s Ultimatums and the Erosion of Presidential Credibility

On Friday, October 3rd, President Donald Trump issued a dramatic ultimatum on Truth Social, stating this is the “LAST CHANCE” for Hamas to accept a 20-point peace proposal backed by Israel and several Arab nations. The deadline, set for Sunday at 6:00 p.m. EDT, was framed as a final opportunity to avoid catastrophic consequences. Trump warned that if Hamas rejected the deal, “all HELL, like no one has ever seen before, will break out against Hamas,” and that its fighters would be “hunted down and killed.”

Ordinarily, when a president sets a deadline, the world takes him seriously. In history, Presidential deadlines signal resolve, seriousness, and the weight of executive authority. But with Trump, the pattern is different. His history of issuing ultimatums and then quietly backing off has dulled the edge of his threats and raised questions about their strategic value.

Keep ReadingShow less
From Fragility to Resilience: Fixing America’s Economic and Political Fault Lines

fractured foundation and US flag

AI generated

From Fragility to Resilience: Fixing America’s Economic and Political Fault Lines

This series began with a simple but urgent question: What’s gone wrong with America’s economic policies, and how can we begin to fix them? The story so far has revealed not only financial instability but also deeper structural weaknesses that leave families, small businesses, and entire communities far more vulnerable than they should be.

In the first two articles, “Running on Empty” and “Crash Course,” we examined how middle-class families, small businesses, and retirees are increasingly caught in a web of debt and financial uncertainty. We also examined how Wall Street’s speculative excesses, deregulation, and shadow banking have pushed the financial system to the brink. Finally, we warned that Donald Trump’s economic agenda doesn’t address these problems—it magnifies them. Together, these earlier articles painted a picture of a system skating on thin ice, where even small shocks could trigger widespread crisis.

Keep ReadingShow less