The Life Cycle of a Federal Reserve Note

1 Design

2 Order

3 Production

4 Issuance

5 Circulation

This life cycle involves collaboration between these government partners

The Federal Reserve Board
(FRB)
The U.S. Department of Treasury and its Bureau of Engraving and Printing
(BEP)
The U.S. Secret Service
(USSS)

Image of $100 note with security features highlighted, including security thread, 3-D Security Ribbon, Bell in the Inkwell, and color-shifting 100

New note designs include a portrait of a famous American statesman and images that reflect aspects of the nation’s history, as well as the latest anti-counterfeiting features.

Did
you
know?

It is a 10 year apprenticeship to become a banknote engraver.

Hand engraving portrait of Benjamin Franklin

stack of $1 bills — Each year, the FRB places a print order with the BEP to produce new banknotes.

stack of $2 bills — Each year, the FRB places a print order with the BEP to produce new banknotes.

The order is based on the FRB’s estimate of public demand of currency for the upcoming year and how much currency they estimate will be destroyed because it is unfit to circulate.

Chart showing currency print order in 2022 and 2023 by denomination — 2022 vs. 2023 currency print orders*

Did
you
know?

More than 70% of the notes in the print order are notes that will be used to replace notes considered to be unfit and removed from circulation.

faded bill with tear — Unfit: removed from circulation

faded bill — Unfit: removed from circulation

bill in good shape — Fit: returned to circulation

Producing a sheet of notes takes several days and uses a variety of presses and printing techniques.

Once printed, the sheets pass through a quality control system that accepts or rejects each sheet within 0.3 seconds.

Image of $20 notes being printed on a printing press

Did
you
know?

Pie chart showing the composition of U.S. currency. 75%. — 75% cotton

Pie chart showing the composition of U.S. currency. 25%. — 75% cotton

Currency is printed on

32 and 50 subject sheets

When the FRB issues U.S. currency to Federal Reserve Banks, the pieces of paper printed at the BEP become lawful money.

Did
you
know?

Notes travel from 2 BEP facilities to the 28 federal reserve bank cash offices

Points on map of the U.S. highlighting cities where Federal Reserve Bank cash offices and B.E.P. printing facilities are located.

Image of map of the U.S. showing where Federal Reserve Bank cash offices and B.E.P. printing facilities are located

The Federal Reserve Banks provide cash services to over 8,400 financial institutions in the United States

Federal Reserve Banks process notes to ensure that they are genuine and fit for recirculation. Suspected counterfeit notes are sent to the USSS.

$10 bill with magnifying glass over numeral 10 on right side of bill

Image of $10 note, focusing on color-shifting numeral 10 in bottom right hand corner

The Federal Reserve Banks’ cash offices distribute banknotes to the public through commercial banks, credit unions, and savings and loan associations.