WASHINGTON (WOWO) — Americans could eventually see a new version of the nickel under legislation passed by the U.S. House that aims to reduce the cost of producing coins and address changes following the end of penny production.

The Common Cents Act would formally end production of the penny, which the U.S. Mint has already stopped producing, and establish guidelines for handling cash transactions without one-cent coins. The bill would also direct the Treasury Department to study a redesigned nickel made with a lower-cost metal composition.

Under the proposal, the Treasury would be allowed to test a new nickel that maintains compatibility with vending machines while reducing production costs.

The current nickel costs more than its face value to manufacture. The U.S. Mint reported that producing a nickel cost about 13.31 cents in fiscal year 2025, marking the 20th consecutive year that the coin has cost more than five cents to make.

The proposed redesign could use a combination of zinc and nickel rather than the current composition, which is made of 25% nickel and 75% copper. Supporters say using less expensive materials could help reduce costs for taxpayers.

The change comes as retailers and consumers adjust to a post-penny economy. Without pennies available for cash transactions, some businesses have begun rounding totals to the nearest five-cent increment.

The legislation would not immediately change the appearance of the nickel or remove current coins from circulation. The bill must still pass the U.S. Senate and receive the president’s signature before becoming law.

For now, pennies and nickels remain legal tender, and existing coins will continue to be used.