Why Did the US Stop Making 2 Dollar Bills?

The $2 bill is a denomination of U.S. currency that often sparks curiosity due to its infrequent appearance. Many people mistakenly believe the United States government stopped producing these bills, leading to their perceived rarity. This article clarifies the ongoing status of the $2 bill, exploring its historical journey and factors contributing to its uncommon presence in circulation. The $2 bill remains a valid form of legal tender.

Early History and Initial Circulation

The federal government first issued the $2 bill in March 1862 as a Legal Tender Note, featuring a portrait of Alexander Hamilton. Over the years, the bill underwent several redesigns, with Thomas Jefferson’s portrait appearing on the $2 United States Note starting in 1869. Before 1929, the $2 bill was issued in various forms, including National Bank Notes, Silver Certificates, and Federal Reserve Bank Notes. When U.S. currency was standardized and reduced in size in 1928, the $2 bill continued as a United States Note. Production of this note continued until 1966, when United States Notes were phased out, and the $2 denomination was temporarily discontinued until 1976.

Factors Contributing to Reduced Usage

The perceived scarcity of the $2 bill stems from public perception, inconvenience in commerce, and banking practices. Historically, the bill developed a negative reputation, with some associating it with bad luck or illicit activities. The term “deuce” was linked to the devil, leading some to tear off a corner to negate bad fortune, resulting in mutilated currency. Urban legends also connected the $2 bill to vote buying or certain niche transactions, further cementing its unusual status.

Beyond superstitions, the $2 bill’s non-standard denomination presented practical challenges for businesses. Cash registers were typically designed with slots for $1, $5, $10, and $20 bills, lacking a dedicated spot for the $2 bill. This often led cashiers to place them under the till or with other receipts, making them less visible and less frequently dispensed as change. Vending machines and self-checkout systems were also not always configured to accept the denomination, contributing to its limited use in everyday transactions.

Financial institutions also played a role in the bill’s reduced circulation. Due to low public demand, banks often kept fewer $2 bills on hand compared to other denominations. Unless specifically requested, customers rarely received $2 bills, perpetuating the idea that they were out of production. This cycle of low demand leading to limited availability further reinforced the public’s unfamiliarity with the bill.

Current Production and Availability

The U.S. Treasury continues to print $2 bills, and they remain legal tender. The Bureau of Engraving and Printing produces them on an “as-needed” basis, meaning they are not printed every year like other more frequently used denominations. This irregular printing schedule is due to lower demand, allowing a single production run to last for several years before the Federal Reserve needs to order more. Production occurs intermittently, with large print runs serving demand for several years.

Individuals can obtain $2 bills by requesting them from their local bank. While a specific branch might not always have them readily available, banks can order them from the Federal Reserve. Many banks require a minimum order, and it may take a few days for the order to arrive. The $2 bill is a valid and functional part of U.S. currency, recognized for its face value in all transactions.