Legislation to change the metallic composition of the penny and nickel to a less expensive copper-colored steel passed in the U.S. House of Representatives on May 8, 2008.

However, the plunge in base metal prices since could very well end the legislation’s chances of moving forward in the Senate.

The goal of the bill, which it titled Coin Modernization and Taxpayer Savings Act of 2008 - H.R. 5512, was directed toward saving money after high copper prices pushed production costs of the penny up to about 1.26 cents and the nickel to about 7.7 cents.

Since May, copper prices have fallen to where the melt value of a penny is now under a half cent and the nickel is just slightly higher than 5 cents — the U.S. Mint now makes money issuing pennies and almost breaks even with nickels.

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The House debated on the legislation and finally voted yesterday to change the metallic composition of the penny and 5-cent nickel to a less expensive copper-colored steel.

Although the prices of copper, zinc and nickel metals in coins have declined in recent months, the penny and 5-cent nickel still cost more to make than what they’re worth—resulting in a reported loss of about $100 million every year, or $1 billion over a decade.

It now costs about 1.26 cents to make the penny and about 7.7 cents to make the nickel.

House bill “H.R. 5512, the Coin Modernization and Taxpayer Savings Act of 2008” would seek to change those manufacturing costs by using copper-colored steal, which could cut the cost of making pennies down to about 0.7 cents each. But its recent passage in the House is no guarantee it’ll make its way to the White House for signing.

H.R. 5512 must still go through the Senate and then the President, and not everyone is happy with the current legislation.

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The debate to change the metal composition of U.S. coinage was waged on the House floor Tuesday.

With the surging prices of metals like zinc and copper, it now costs more than a penny to make a penny and about 7.7 cents to make a nickel.

A new House bill entitled "H.R. 5512, the Coin Modernization and Taxpayer Savings Act of 2008" would seek to change that and it was that bill, which was in debate.

The proposed legislation would give the Treasury Secretary the power to change the composition of coins and use less expensive metals. It also would require the United States Mint to produce steel pennies within six months of the bill’s enactment.

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Earlier in the day the American Numismatic Association (ANA) sent out an e-mail notice letting members know ANA Money Museum Curator Douglas Mudd would be discussing the history, design and current use of the $1 bill on the Fox Business Network.

Unfortunately, the odds would have it that many likely read the e-mail only after the interview took place, which occurred at 12:45 p.m. (ET). Or, the daily business routine made it impossible to watch.

The good news is that the Fox Business video entitled, Decoding The Dollar, is now available online and embedded below.

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WASHINGTON, D.C. — The first new $5 bill was issued by the Federal Reserve today during a commemorative transaction at President Lincoln’s Cottage at the Soldiers’ Home in Washington, D.C., a historic site used by the former president as a White House summer retreat.

Officials from the Federal Reserve Board, U.S. Treasury, Bureau of Engraving and Printing and U.S. Secret Service ushered the new $5 bill into circulation at the Lincoln Cottage gift shop.

Michael Lambert, Assistant Director, Division of Reserve Bank Operations and Payment Systems at the Federal Reserve Board, spent the first new $5 bill on a book of President Lincoln’s speeches. President Lincoln’s portrait continues to be featured on this redesign of the $5 bill.

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The cost to manufacture pennies and nickels exceeds their face value. A newly introduced House bill would change the metal composition in coins to make them profitable again.

The newly introduced bill is not a new concept. A similar bill received attention late last year. The ‘Coin Modernization and Taxpayer Savings Act of 2007‘ failed to get through the gates when a mini firestorm erupted. Mostly because the bill contained more than what its name implied - a provision that would allow citizens to melt pennies.

That portion of the bill proved to be controversial. Why? The U.S. Treasury implemented a ban on melting 1-cent and 5-cent coins that went into effect just months earlier with a stated objective to save money.

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The first new redesigned $5 bill will be spent in the gift shop of President Lincoln’s Cottage at the Soldiers’ Home in Washington, D.C. on March 13.

The announcement was made today by the Bureau of Engraving and Printing (BEP).

Back in September of 2007, the BEP for the first time ever digitally unveiled the new bill redesign that promises to be “safer, smarter and more secure”.

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In a blaze of actions and to get home for the holidays, the Senate and House tossed together a several hundred page bill named, The Consolidated Appropriations Act, 2008. The bill has been given to the President and while there’s no guarantee, the signing of it seems likely.

(Editor’s update: President Bush signed the act into law Dec. 26.)

Even with the latest and greatest computer, the digital document takes seconds to load. Reading it in its entirety… well, that’s hours of tedium. Thanks to modern search tools, quicker inspection is possible. And upon review, the bill contains a few nuggets of interest for coin collectors.

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All good things come to an end. The 50 State Quarters® Program is near that end. Or, is it?

Next year all 50 states will have been commemorated and, by law, the state quarters series will close down.

However, there’s legislation that has passed the House and is already in the Senate’s hands to change that.

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For the first time ever the U.S. Bureau of Engraving and Printing digitally unveiled a new bill redesign.

The new $5 bill will mix into the circulating starting in early 2008 and is promised to be "safer, smarter and more secure".

The Bureau of Engraving and Printing launched the digital redesign through an Internet news conference that was backed up with excellent web site resources describing the new $5.

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