Annual Report to the Congress on the Presidential $1 Coin Program - September 2017
Pursuant to section 104 of the Presidential $1 Coin Act of 2005 (Public Law 109-145), the Board of Governors of the Federal Reserve System (Board) is required to submit an annual report to the Congress that includes an assessment of the remaining obstacles to the efficient and timely circulation of $1 coins; a summary of consultations with industry representatives, the vending industry, and other coin-accepting organizations to encourage the acceptance of $1 coins; and recommendations for legislative action that the Board may determine to be appropriate.
The United States Mint has not produced Presidential $1 coins for circulation since December 2011, but continues to produce them for collectors.1 As a result, the Federal Reserve Banks (Reserve Banks) meet depository institution demand with existing $1 coin inventories. Similar to their feedback in previous years, depository institutions continue to indicate that there are no operational challenges associated with distributing the $1 coin, and they have not reported any questions on the topic.2 Also, Board staff received no inquiries on this topic.
$1 Coin Inventories
Reserve Bank inventories of $1 coins decreased by about $59 million over the past year, to approximately $1.22 billion as of June 30, 2017 (see table). Inventories are about $1.15 billion more than the Reserve Banks held before the start of the Presidential $1 coin program. Assuming current levels of demand continue, Reserve Bank inventories will decrease slowly over time. We estimate that Reserve Banks hold sufficient $1 coin inventory to meet demand for nearly 30 years.
Table 1. Quarterly Reserve Bank (RB) $1 coin inventories, mint orders, receipts, & payments
Millions of dollars
|Mint orders||RB Receipts from circulation||RB payments to circulation||Ending RB inventory 1+2+3-4|
Note: Reserve Bank payments to circulation do not include the $1 coins that the United States Mint has issued directly into circulation. The United States Mint has indicated that it issued directly to circulation $77 million Native American $1 coins through its Direct Ship program in 2011, and $1.4 million in 2012. The program was discontinued in early 2012.
Future Reporting and Recommendation for Legislative Action
To ensure compliance with the Presidential $1 Coin Act, the Federal Reserve will continue to fulfill demand for $1 coins from depository institutions from existing inventory, while the United States Mint will meet collector demand for new designs through direct sales.
In its 2012 annual report, as well as subsequent reports, the Board recommended the elimination of the annual reporting requirement of the Presidential $1 Coin Act, by striking section 5112(p)(3)(B) of title 31 of the United States Code. We continue to recommend this action. In 2012, Secretary Geithner suspended production of the Presidential $1 coins for circulation, and, in 2016, after production of collectors' coins depicting the last eligible president (Ronald Reagan), the program ended.
Quarterly information on Reserve Bank inventory levels, as well as information on Reserve Bank orders, receipts, and payments of $1 coins is available on the Board's public website at https://www.federalreserve.gov/paymentsystems/coin_data.htm.
1. Treasury's announcement can be found at https://www.treasury.gov/connect/blog/Pages/Reducing-the-Surplus-Dollar-Coin-Inventory-Saving-Taxpayer-Dollars.aspx. Return to text
2. Beginning in 2008, the Federal Reserve and the United States Mint agreed to meet with their respective coin user groups through normal channels each year of the program and share feedback as appropriate. Return to text