WASHINGTON, D.C. — Representative Frank D. Lucas (OK-03) has voiced strong support for the Common Cents Act, legislation designed to reduce federal spending associated with coin production by ending the manufacture of the penny and allowing the U.S. Mint greater flexibility in producing a lower-cost nickel.
Lucas, a member of the House Financial Services Committee and Chairman of the House Financial Services Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity, delivered remarks on the House floor advocating for the measure. The proposal would codify President Donald Trump’s directive to the Treasury Department to halt production of the one-cent coin while also authorizing changes to the composition of the nickel to lower manufacturing expenses.
The legislation comes amid ongoing concerns about the rising costs of minting coins and the long-standing financial losses associated with producing pennies. Supporters argue that the measure represents a practical step toward reducing unnecessary government expenditures while preserving the nation’s cash payment infrastructure.
Speaking in support of the bill, Lucas highlighted the bipartisan effort behind the legislation and emphasized its focus on fiscal responsibility.
“I rise Today in strong support of the Common Cents Act. This bill has been over a year in the making with my colleagues Ms. McClain and Ranking Member Waters, and I am proud of the product we have put forward.”
A central argument behind the legislation is the growing gap between the production cost of the penny and its face value. According to Lucas, the government continues to spend significantly more to manufacture the coin than the coin itself is worth.
“The one-cent piece, or the penny as it’s commonly called, costs almost four cents to produce. 2024 was the 19th consecutive year the U.S. government lost money keeping the penny in circulation.”
The issue has drawn increasing attention from lawmakers and economists who argue that maintaining penny production places an unnecessary burden on taxpayers. Similar discussions have taken place in other countries that have eliminated low-denomination coins after production costs exceeded their monetary value.
Lucas pointed to the President’s previous action directing the Treasury Department to discontinue penny production and said the legislation would provide a permanent statutory framework for that decision.
“That is why last year the President rightly ordered the Treasury Department to stop wasting hard-earned taxpayer dollars to produce the coin and why we’re excited to move forward in codifying this action.”
Beyond the penny, the Common Cents Act also addresses the production of the nickel, which has faced its own cost challenges. Current law requires the coin to be manufactured using a composition established more than a century ago.
“The Common Cents Act also gives flexibility to the Mint to produce a nickel with cheaper materials. In 1866, Congress mandated the nickel be produced from an ally of copper and nickel, and we haven’t updated the composition since. This bill gives the Mint flexibility to produce a cheaper coin while retaining Congress’ responsibility of coining money.”
Supporters of the legislation contend that modernizing the nickel’s composition could generate additional savings while maintaining the coin’s functionality and public acceptance. The proposal would not remove the nickel from circulation but would allow the Mint to explore alternative materials that could reduce production costs.
Lucas also emphasized the bill’s potential benefits for businesses that continue to rely on cash transactions. He said the legislation would create greater certainty for retailers and consumers while avoiding government-imposed pricing mandates.
“Finally, the bill provides certainty for businesses in their cash transactions with customers, without mandating price controls from the government. We are proud to boast endorsements from the National Retail Federation, National Grocers Association, United Steelworkers International Union, and the American Bankers Association, among many others.”
The broad coalition of supporters reflects backing from retail, financial, labor, and business organizations that view the measure as a practical approach to improving efficiency in the nation’s coinage system.
Concluding his remarks, Lucas thanked fellow lawmakers who helped advance the proposal and expressed optimism that the measure would receive support from both parties as it moves through Congress.
“I want to thank Ms. McClain and Ranking Member Waters for their leadership on this issue, and I look forward to enjoying broad bipartisan support from this Body Today.”
The Common Cents Act now moves forward as lawmakers continue debates over federal spending priorities and efforts to modernize aspects of the nation’s monetary system while reducing long-term costs for taxpayers.
