Annual Report to the Congress on the Presidential $1 Coin Program - December 2020
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; 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 the Board has not received any questions or inquiries on this topic.2
$1 Coin Inventories
Reserve Bank inventories of $1 coins decreased by $41 million over the past year, to nearly $1.064 billion as of June 30, 2020 (see table 1 below). Inventories are about $996 million 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 21 years.3
Table 1. Quarterly Reserve Bank (RB) $1 coin inventories, Mint orders, receipts, and payments
Millions of dollars
|Beginning RB inventory||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 United States Mint discontinued the Direct Ship program 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 depository institutions' demand for $1 coins with existing inventory, while the United States Mint will meet collector demand for new designs through direct sales.
In its 2012 submission of this 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, then-Treasury 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.
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 website at https://www.federalreserve.gov/paymentsystems/coin_data.htm.
1. U.S. Department of the Treasury (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
3. This calculation reflects how long the current stock of inventory could meet demand, based on average demand over the past five years. Return to text