United States Two-dollar Bill - Denomination Overview

Denomination Overview

The denomination of two dollars was authorized under a congressional act and first used in March, 1862. The denomination was continuously used until 1966 when the only class of U.S. currency it was then assigned to, United States Notes, began to be discontinued. The $2 bill initially was not reassigned to the Federal Reserve Note class of United States currency and was thus discontinued; the Treasury Department cited the $2 bill's low use and unpopularity as the reason for not resuming use of the denomination. In 1976 production of the two-dollar denomination was resumed and the two-dollar bill was finally assigned as a Federal Reserve Note, with a new design on the back featuring John Trumbull's depiction of the drafting of the United States Declaration of Independence replacing the previous design of Monticello. It has remained a current denomination since then. It was estimated that if the two-dollar bill replaced approximately half of the one-dollar bills in circulation, the federal government would be able to save about $26 million in 1976 dollars ($106 million adjusted for inflation) over the period from 1976 to 1981, due to reduced production, storage, and shipping costs.

Today, two-dollar bills are not frequently reissued in a new series like other denominations which are printed according to demand; two-dollar bills today are issued but are requested to be printed less often than the other denominations. Though some cash registers accommodate it, its slot is often used for things like checks and rolls of coins. Some bill acceptors found in vending machines, self checkout lanes, and other automated kiosks are configured to accommodate two-dollar bills, even if the fact is not stated on the label. Although they usually are not handed out arbitrarily, a small number of two-dollar bills can often be found on hand at banks. Many banks stocking $2 bills will not use them except upon specific request by the customer, and even then, may cause a delay with a trip to the vault.