In the face of a record $1.4 trillion federal deficit, some government bureaucrats are putting their self-interest ahead of taxpayers and this nation’s financial future by erecting barriers to a program that is authorized by law, ready for implementation, and would cut more than half a billion dollars from the federal budget annually!

Since 2000, several Acts of Congress -- passed with broad, bipartisan support -- have directed the U.S. Mint to issue “golden” $1 coins.  The $1 coin has proven to save the federal government significant sums of money over the $1 bill because $1 coins are more durable and cost significantly less to produce over their lifespan.  The $1 coin can last 30 years or more, compared to just 21 months on average for the $1 bill.  That means the $1 coin costs 16 cents to produce, or 66 percent less than the 47-cent cost of the lifespan production of the $1 bill.
Ten years ago, the Government Accountability Office estimated that using $1 coins would save taxpayers as much as $522 million each year.  The savings would likely be even higher today.

In addition, the $1 coin saves money for the private sector because it is cheaper to handle and process coins than bills.  Mass transit agencies have found that processing $1 coins costs 83 percent less than processing $1 bills.  In addition, vending machine operators have determined that $1 coins save their industry $1 billion a year.

But proving yet again that even the most commonsense cost-saving reform will face opposition from those who benefit from the status quo, the Federal Reserve is standing in the way of the $1 coin’s success, and the Treasury Department is letting them get away with it!
The Federal Reserve and the U.S. Mint are required by law to remove barriers to the $1 coin’s circulation.  However, the Federal Reserve issues the United States’ paper currency and doesn’t like the competition from the $1 coin, which is issued by the Mint.  The Fed’s leaders have instituted all sorts of ridiculous regulations and red tape that restrict access to $1 coins for banks, businesses, and individual Americans like you and me.

The burden is on the Treasury Department to force the Federal Reserve to follow the law.