House Votes for Less Costly Production Of Pennies and Nickels

By Associated Press
May 9, 2008

WASHINGTON — The House voted for cheaper change yesterday, the kind that would make pennies and nickels worth more than they cost to make and save the country $100 million a year.

The unanimous vote advances the legislation to the Senate, but it's prospects are muddled by objections from the Bush administration and some lawmakers.

The bill would require the U.S. Mint to switch from a zinc and copper penny, which costs 1.26 cents each to make, to a copper-plated steel penny, which would cost .7 cents to make, according to statistics from the Mint and Rep. Zack Space, an Ohio Democrat, one of the measure's sponsors.

It also would require nickels, now made of copper and nickel and costing 7.7 cents to make, to be made primarily of steel, which would drop the cost to make the five-cent coin below its face value.

Advocates say that such actions would push back against surging metal prices and save taxpayers about $1 billion over a decade.

But even the Mint opposes the House-passed measure.

The legislation directs the Treasury secretary to "prescribe" — suggest — a new, more economical composition of the nickel and the penny. Unsaid is the Constitution's requirement that Congress have the final say.

The administration, like others before, chafes at the thought that Congress still clings to that authority.