The United States Mint’s Mutilated Coin Redemption is permanently closed. The United States Mint is no longer accepting bent or partial coins for redemption.
Ending the Redemption Program
For many years, the United States Mint redeemed bent and partial coins for full face value. However, circumstances surrounding the redemption program have materially changed. Submissions must be carefully evaluated to ensure that counterfeit coins are not accepted to the program, and the condition of many coins, particularly large volumes of coins damaged by recycling or industrial processes, makes authentication increasingly difficult and time-consuming. In addition, the volume of coins submitted for redemption greatly increased, and counterfeits have been increasingly identified both in imported coins intercepted by law enforcement and in large submissions to the redemption program. The result of these changed circumstances is that there is currently no financially responsible way to ensure the integrity of the redemption program and to the meet the full level of demand. The United States Mint’s capacity to process mutilated coins is limited by physical storage capacity, caseload complexity, and workload. Authentication procedures require extensive time and resources.
On May 3, 2024, the United States Mint issued a proposed rule (89 FR 36721) proposing to end the Mutilated Coin Redemption Program. After a public comment period and careful consideration of the comments received, the United States Mint formally made the decision to close the redemption program, issuing a Final Rule ending the program (89 FR 78241). The Final Rule can be found here. The Final Rule was published on September 25, 2024 and took effect October 25, 2024. The United States Mint has provided a small business compliance guide for the new rule, which can be found here.
Disposal of Bent or Partial Coins
Businesses and individuals may have questions regarding disposal of bent or partial coins. Please note that while 18 U.S.C. § 331 describes criminal penalties associated with behavior that is conducted with the intent to defraud, there is no statutory or regulatory prohibition on melting dimes, quarters, half-dollar, and dollar coins when done without fraudulent intent and consistent with 31 C.F.R. Part 82.
There is a regulatory prohibition against melting pennies and nickels, based in part on the fact that the cost of producing these coins currently exceeds their face value. However, please note that these regulations include a specific exception at 31 C.F.R. § 82.2 for coins melted or treated incidental to recycling other materials if (1) the coins were not added to the other materials for their metallurgical value, (2) the volumes of the coins, relative to the volumes of the other materials recycled, makes it clear that the presence of such coins is merely incidental, and (3) the separation of the coins from the other materials would be impracticable or cost prohibitive. See 31 C.F.R. § 82.2(c). This exception extends to the melting of coins that become mutilated due to treatment that is itself within the scope of the exception.
Requests for licenses to melt mutilated pennies and nickels consistent with the regulations should be transmitted to the Director, United States Mint; 801 9th Street, NW; Washington, DC 20220. See 31 C.F.R. § 82.2(f). For license requests to melt mutilated pennies and nickels, please include your name, business name (if applicable), whether the coins are bent and/or partial, a description of how the coins became mutilated, and the volume of coins requested to be melted.
Individuals can inquire of their local scrap metal dealers or other local recycling provider.
Contacting the United States Mint
The United States Mint is available to assist with questions regarding the closure of exchange program for bent and partial coin. Please direct questions to inquiries@usmint.treas.gov.