January 23, 2020
Design of United States Paper Currency
Paper money has officially been part of United States
transferred from Treasury to DHS in 2003 with the
currency since the Continental Congress authorized a $2
enactment of the Homeland Security Act (P.L. 107-296).
note in June 1776. These first notes were designed as “bills
of credit” to pay for the defense of the United States during
Federal Reserve v. United States Notes
the Revolutionary War.
Today, all circulating U.S. currency notes are Federal
Reserve Notes. These notes are printed by the Bureau of
Between the ratification of the Constitution, which
Engraving and Printing (BEP) and placed into circulation
prohibited the coinage of money by the states (Article I,
by the Federal Reserve. These notes are legal tender (31
§10), and the Civil War, paper money was not issued.
U.S.C. §5103) for “all debts, public charges, taxes, and
Rather, the government intermittently issued “Treasury
dues.” Currency issued between 1862 and 1971 was known
notes” during periods of financial hardship, including the
as “United States notes.” Any that remain in circulation
War of 1812, the Mexican-American War (1846), and the
continue to be valid and redeemable at full face value.
economic panic of 1857.
Currency Denominations
The Secretary of the Treasury, through the BEP, issues
In 1862, Congress authorized the Secretary of the Treasury
Federal Reserve Notes in denominations of $1, $2, $5, $10,
to design and print paper currency, popularly known as
“greenbacks
$20, $50, and $100. Historically, $500, $1,000, $5,000,
,” to finance the Civil War (12 Stat. 532).
$10,000, and $100,000 notes were also issued. Production
Historically, the smallest denomination issued has been $1.
of large denomination notes ($500 or larger) stopped during
Laws pertaining to currency, with a couple of exceptions
World War II, and on July 14, 1968, the Secretary of the
noted below, generally have not specified how paper notes
Treasury and the Federal Reserve Board announced that the
would look.
$500, $1,000, $5,000, and $10,000 notes would no longer
be printed or placed into circulation.
That the Secretary of the Treasury be, and is hereby
Design of Notes
authorized, in case he shall think it inexpedient to
Federal Reserve Notes are printed by the BEP under the
procure said notes, or any part thereof, ... to be
authority of the Secretary of the Treasury (12 U.S.C. §418).
engraved, printed, and executed, in such form as he
The Secretary has broad discretion on the design of notes.
shall prescribe, at the Treasury Department in
For example, in 2013, the $100 note was redesigned for
Washington, and under his direction; and he is hereby
security reasons. It now features a 3-D security ribbon and a
empowered to purchase and provide all machinery
color-shifting Liberty Bell in the “inkwell.” Figure 1 shows
and materials, and to employ such persons and
the current design of the $100 note.
appoint such officers as may be necessary for this
purpose.
Figure 1. $100 Note (2013-Present)
Act of July 11, 1862, §2 (12 Stat. 532)

Historically, U.S. paper currency was designed in large part
to meet anticounterfeiting requirements. In 1863, Congress
authorized the Treasury to issue circulating notes designed
“in the best manner to guard against counterfeiting and
fraudulent alterations” (12 Stat. 669). The authority to
investigate counterfeiting was transferred to the Department
of the Treasury in 1860 (12 Stat. 102).
Counterfeiting continued to be a problem for the federal
government throughout the Civil War, and by 1865,
between one-third and one-half of all U.S. currency in
circulation was counterfeit. Due to this issue, the Secretary
of the Treasury established the Secret Service Division
(SSD). Today, the U.S. Secret Service (USSS) continues to
investigate counterfeiting operations of U.S. currency as

part of the Department of Homeland Security (DHS). It was
Source: BEP, “The $100 Note,” at https://www.uscurrency.gov/
denominations.
https://crsreports.congress.gov

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link to page 2 Design of United States Paper Currency
Design Features
Changing Portraits
The law governing paper currency specifies two design
Since the 101st Congress, several bills have been introduced
features. First, since 1955, all notes must have the
to direct the Secretary of the Treasury to feature a new
inscription “In God We Trust” in a place the Secretary
portrait on the front of Federal Reserve Notes. While none
determines. Second, portraits on currency must depict “a
of these bills have been considered by either the House or
deceased individual” with the “name of the individual ...
Senate, they have proposed to honor individuals such as
inscribed below the portrait.”
former President Ronald Reagan, Harriet Tubman, and
other American women.
Featured Portraits
Pursuant to 31 U.S.C. §5114(b), the Secretary of the
In 2016, then-Secretary of the Treasury Jacob Lew
Treasury may determine which portraits appear on currency
suggested in several media interviews that a woman (widely
and securities, so long as the individual is deceased and the
reported to be Harriet Tubman) could be featured on future
person’s name appears on the bill. Table 1 lists the
redesigns of the $10 or $20 note. At this time, the BEP
individuals who currently appear on currency notes.
reports that the $10 note will be redesigned for issue in
approximately 2026, but has not indicated whether a
Table 1. Portraits Featured on U.S. Paper Currency
portrait change might occur. The Secretary can decide to
change the portrait featured on a Federal Reserve Note
Bill
Front
Back
without congressional authorization.
$1
George Washington
Great Seal of the United
Changing Reverse Images
States
Like the portrait, the Secretary has the authority to
$2
Thomas Jefferson
Declaration of Independence
determine images that appear on the note’s reverse. In some
cases, legislation has been introduced to direct the Secretary
$5
Abraham Lincoln
Lincoln Memorial
to include certain images or words. For example, on several
$10
Alexander Hamilton
U.S. Treasury Building
occasions, legislation has been introduced to direct the
Secretary to incorporate historical items such as the
$20
Andrew Jackson
White House
preamble to the Constitution, the Articles of Confederation,
$50
Ulysses S. Grant
U.S. Capitol
and constitutional amendments on paper currency. None of
these proposals have been considered by Congress.
$100
Benjamin Franklin
Independence Hall
Dollar Note Redesign Prohibition
Source: Bureau of Engraving and Printing, “Portraits,” FAQs, at
https://www.moneyfactory.gov/resources/faqs.html.
In many appropriations laws, Congress has included a
Notes: Denominations of $500 or greater are no longer in
provision that prohibits the Department of the Treasury or
production or put into circulation by the Federal Reserve. The
the BEP from redesigning the $1 note. For example, the
following individuals appear on those notes: $500, Wil iam McKinley;
most recent inclusion of this provision was in P.L. 116-93
$1,000, Grover Cleveland; $5,000, James Madison; $10,000, Salmon
(Div. C, Title I, §114), the Consolidated Appropriations
P. Chase; and $100,000, Woodrow Wilson. The $100,000 note never
Act, 2020. It said “None of the funds appropriated in this
appeared in circulation. Rather, it was used only in transactions
Act or otherwise available to the Department of the
between Federal Reserve Banks.
Treasury or the Bureau of Engraving and Printing may be
used to redesign the $1 Federal Reserve note.”
Anticounterfeiting Features
Each note designed and printed by the BEP contains three
This provision was first included in appropriations law in
levels of security features. Level 1 features are visible to the
1999. At that time, the provision’s sponsor thought the cost
note holder and might include subtle background colors,
to redesign the $1 note would be too high and that
ribbons embedded in the note, or microprinting. Level 2
businesses (e.g., vending machines, transit systems) might
features are designed to allow for optical recognition by
object. Additionally, the $1 note has historically been the
banks, point-of-sale systems (e.g., a self-checkout machine
least counterfeited of the Federal Reserve Notes. This
at a retail store), and automated teller machines (ATMs).
provision has been included in appropriations laws each
Level 3 features are covert and are not publicly discussed by
year since its initial inclusion.
the Department of the Treasury or the BEP. Due to these
currency note security features, the USSS’s latest annual
For more information on U.S. currency, see CRS In Focus
report states that in 2017 it prevented the circulation of over
IF10533, Congressional Involvement in the Design of
$73 million in counterfeit U.S. currency, arrested 1,548
Circulating Coins, by Jacob R. Straus; CRS In Focus
counterfeiters, and shut down 101 counterfeiting plants.
IF11394, Quarter and Half Dollar Coins: History and
Issues for Congress
Proposed Designs, by Jacob R. Straus; and CRS Report
RL34603, The U.S. Secret Service: History and Missions,
In recent years, legislation has been introduced to address
by Shawn Reese.
the design of paper currency. These bills would have
prescribed the portraits featured on the currency and the
design found on the reverse of Federal Reserve Notes.
Jacob R. Straus, Specialist on the Congress
Additionally, several appropriations measures have
Shawn Reese, Analyst in Emergency Management and
included provisions prohibiting the redesign of the $1 note.
Homeland Security Policy
Jared C. Nagel, Senior Research Librarian
IF11414
https://crsreports.congress.gov

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Design of United States Paper Currency


Disclaimer
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https://crsreports.congress.gov | IF11414 · VERSION 1 · NEW

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