WASHINGTON, D.C. –The Cents and Sensibility Act, introduced by Congressman Steve Stivers (R-OH), received a hearing this week in the House Financial Services Subcommittee on Monetary Policy and Trade. The bipartisan legislation lowers the cost of producing pennies, nickels, dimes and quarters by ensuring they are minted with steel instead of minerals imported from outside the United States. Representatives Tim Ryan (D – OH) and Pat Tiberi (R – OH) signed on as original co-sponsors of the bipartisan legislation.
WASHINGTON, D.C. –The Cents and Sensibility Act, introduced by Congressman Steve Stivers (R-OH), received a hearing this week in the House Financial Services Subcommittee on Monetary Policy and Trade. The bipartisan legislation lowers the cost of producing pennies, nickels, dimes and quarters by ensuring they are minted with steel instead of minerals imported from outside the United States. Representatives Tim Ryan (D – OH) and Pat Tiberi (R – OH) signed on as original co-sponsors of the bipartisan legislation.
“This legislation is a common-sense 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.”
Since 2006, due to the rising cost of materials and labor, the manufacturing of some denominations has become unprofitable. Of the coins currently in circulation today, the cost of producing pennies and nickels is greater than the actual face value of the coins.
Currently, pennies are made of copper and zinc; while nickels, dimes and quarters are made of copper and nickel. A majority of the copper, zinc and nickel used to make these coins are imported from Canada. Stivers legislation would require all four coins be made of American steel in the future, with the penny dipped in copper. The appearance of the coins would not change, just the materials used to make the coins, making it possible for American steel to be used to produce U.S. coins.
Both pennies and nickels cost more to mint than the face value of the coins. According to the most recent report released by the U.S. Mint it costs about 1.8 cents to make a penny and 9.5 cents to produce a nickel. The dime and quarter both cost less to produce than the face value of the coins.
According to the House Financial Services Committee, the United States will save taxpayers up to $433 million over 10 years by simply changing the composition of the coins to steel.
This legislation is endorsed by the American Iron and Steel Institute.
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