The proposed legislation, known as the "FIFA World Cup 2026 Commemorative Coin Act," seeks to authorize the Secretary of the Treasury to mint and issue coins to commemorate the FIFA World Cup 2026. The coins will recognize the event as it takes place across the United States, Mexico, and Canada. These coins, which will be minted in gold, silver, and half-dollar varieties, are intended to celebrate the significance of hosting such a globally unifying event. Additionally, the act includes clauses about the sale and distribution of these coins and how the proceeds will be used.

General Summary of the Bill

The bill outlines the minting of commemorative coins for the 2026 FIFA World Cup, specifying different denominations including $5 gold coins, $1 silver coins, and half-dollar clad coins. These coins will feature designs symbolizing soccer and the World Cup, with specifics on inscriptions and required design consultations. The legislation includes details about the sale, pricing, and surcharges of the coins, alongside distribution and auditing requirements for the surcharge funds, which are designated for U.S.-based soccer programs.

Summary of Significant Issues

One significant issue is the allocation of surcharges from the coin sales to FWC2026 US, Inc., a tax-exempt organization responsible for World Cup-related activities in the U.S. Without competitive measures or clear transparency protocols, this could raise concerns about favoritism. The bill also notes the tax-exempt status of FWC2026 US, Inc., which may necessitate further review to align with legal criteria.

Another issue is the bill's lack of explicit mechanisms to ensure that minting the coins does not result in net costs to the U.S. government. This could lead to financial risks if sales do not cover the production expenses. Additionally, the reliance on reports from FWC2026 US, Inc. to adjust mintage levels raises potential concerns about conflicts of interest.

Impact on the Public

The bill's enactment could foster a greater appreciation for soccer in the U.S., as the coins commemorate a significant global event. However, the financial implications of minting the coins and their management must be carefully handled to prevent taxpayer bearing of unforeseen costs. The act also aims to channel funds from coin sales to support soccer-related programs, potentially increasing youth and community engagement in the sport.

Impact on Stakeholders

Positive Impact:

Stakeholders like local soccer organizations and communities in host cities stand to benefit from increased visibility and financial support channeled into soccer programs. Collectors and soccer enthusiasts might find value in purchasing and owning a piece of World Cup memorabilia.

Negative Impact:

There could be concerns among taxpayers if the coin program does not generate enough revenue to cover production costs, potentially leading to public funding shortfalls. Additionally, if FWC2026 US, Inc. is perceived to have undue influence or lacks rigorous oversight, this could lead to distrust or dissatisfaction among potential beneficiaries who might expect a more equitable distribution of resources.

In sum, while the bill intends to celebrate and leverage the excitement of the FIFA World Cup 2026, ensuring transparent and fair financial practices will be key to its successful impact and acceptance.

The bill titled H.R. 7438 focuses on the minting of commemorative coins for the FIFA World Cup 2026 and outlines the financial uses of the proceeds from these coins. It provides detailed specifications for the minting of three types of coins: $5 gold coins, $1 silver coins, and half-dollar clad coins. The act strictly defines the quantity and composition of each coin type, with no more than 100,000 $5 gold coins, 500,000 $1 silver coins, and 750,000 half-dollar coins.

Financial Provisions and Surcharges

The legislation mandates that sales of these coins must include a surcharge, specifically $35 per coin for the $5 coin, $10 per coin for the $1 coin, and $5 per coin for the half-dollar coin. These surcharges are critical because they generate additional revenue intended for investment in soccer programs across the United States.

Distribution and Use of Proceeds

A noteworthy facet of the bill is the allocation of proceeds, specifically the surcharges, which are directed to FWC2026 US, Inc.. The funds are earmarked to support U.S.-based soccer initiatives, particularly those focused on youth and underserved communities. However, concerns arise from the provision that directs funds exclusively to one entity, which could be perceived as preferential treatment. There are no transparent measures to ensure that FWC2026 US, Inc. is the most qualified organization to handle these funds, raising concerns about the equitability and transparency of funding distribution.

Financial Assurances and Concerns

The bill explicitly states that the production and issuance of the coins must not result in a net cost to the United States government. Nevertheless, the section on financial assurances is criticized for lacking specific mechanisms that ensure this outcome. The requirement that no funds are disbursed until all costs are fully recovered might delay the intended benefits of the coin program. This poses a potential issue if initial costs are high and sales fall short of projections, which could postpone support for the soccer programs that the bill aims to promote.

Evaluation of Cost Recovery

Before the distribution of proceeds, it is crucial that the costs associated with minting and issuing the coins are recouped by the U.S. Treasury. The bill prioritizes cost recovery, referencing sections of the United States Code to reinforce this requirement. This provision ensures fiscal responsibility; however, it also signifies that the allocation of profits might be delayed, affecting the timely implementation of soccer development initiatives.

Conclusion

The financial structuring within the bill H.R. 7438 reflects a dedicated effort to celebrate the FIFA World Cup 2026 while simultaneously supporting the growth of soccer in the United States. Although the financial provisions aim to maintain fiscal responsibility and support targeted community programs, several concerns regarding the transparency and efficiency of fund allocation remain. These include the potential delay in benefit realization due to cost recovery and the exclusive allocation to a single organization without competitive considerations.