A New Dollar Coin Has Budgetary Savings Potential But Questionable Acceptability

GAO discussed the results of a review of the feasibility, expected acceptance, and potential effects on the government of proposed legislation that would: (1) replace the dollar note with a dollar coin; and (2) phase out the 1-cent and half-dollar coins. GAO found: (1) the government could realize annual budgetary savings of $318 million if it replaced the dollar note with a more durable dollar coin; (2) both the penny and half-dollar coins were profitable; and (3) any new dollar coin must be widely accepted and used. GAO believes that widespread acceptance of the coin will not be achieved unless Congress and the Administration jointly resolve to eliminate the dollar note and remain firm and prepared to handle public resistance to the change.