The House Financial Services Subcommittee on Monetary Policy and Trade recently considered bipartisan legislation introduced by Rep. Steve Stivers (R-Ohio) to lower the cost of producing coins.
The Cents and Sensibility Act would require that steel be used to produce pennies, nickels, dimes and quarters rather than more expensive minerals that are imported from outside the United States.
“This legislation is a commonsense solution to lower the cost of minting our coins,” Stivers said. “Not only will it cost less to produce, but it will also allow us to use an American resource – steel – that can be manufactured right here in our backyard.”
The cost to produce pennies and nickels has become higher than their currency value due to the rising cost of labor and minerals. Currently, pennies are made from copper, zinc and nickel, which are mostly imported from Canada.
The Cents and Sensibility Act would require that all coins be made from U.S. steel. Pennies would be dipped in copper to maintain the traditional bronze look, and the other coins would look the same if produced with steel.
Under the current manufacturing process, pennies cost approximately 1.8 cents each to produce, and nickels cost approximately 9.5 cents, according to the U.S. Mint.
Stivers’ bill would save taxpayers $433 million over 10 years, according to the House Financial Services Committee.