U.S. Department of the Treasury

DATE: December 13, 2024

SUBJECT: Developing and Redesigning Federal Reserve Notes

1. PURPOSE.  This Order establishes the Treasury policy on developing and redesigning Federal Reserve notes (banknotes).
2. SCOPE.  This Order applies to the Bureau of Engraving and Printing and Departmental Offices involved in the processes and governance supporting the development of new Federal Reserve notes or significant updates to the design of current banknotes. The provisions of this Order shall not be construed to interfere with or impede the authorities or independence of the Department’s Inspectors General. “Currency” as used in this Order refers only to the use and production of Federal Reserve notes.
3. POLICY.  It is Treasury policy to preserve the integrity of and public confidence in U.S. currency both domestically and internationally. This includes ensuring the ability to effectively respond to counterfeiting and security threats before they lead to loss of public confidence that could jeopardize the strength and stability of our nation’s economy. The development, manufacturing, and continuous circulation of safe and secure U.S currency is critical to U. S. fiscal policy and domestic and international commerce.
   1. The primary consideration when redesigning currency is addressing counterfeiting and security concerns. That goal shall guide the timing, sequencing, and design of Federal Reserve notes.
   2. Other Treasury policy considerations include the following:
      1. 1) Currency should only be redesigned when counterfeiting threats exceed the Government’s risk tolerance with the goal of maintaining public confidence in the authenticity, integrity, and availability of Federal Reserve Notes.
      2. 2) Decisions on the timing and the sequencing of currency redesign should be informed by evidence and rigorous risk assessments.
      3. 3) Decisions on new subject matter (images) on Federal Reserve notes will take place with the full benefit of input from a wide variety of government and public sector stakeholders.
      4. 4) Treasury’s governance processes for currency redesign will be implemented in a way that ensures continuity of operations during times of leadership transitions.
4. DEFINITIONS.
   1. Concept freeze. The subject matter (image) selection and general banknote design concept approval by the Secretary of the Treasury. The first step of a two-step banknote redesign approval process that establishes the subject matter (front and back images), general composition and layout, as well as the public security features and general color palette indicators for a particular denomination.
   2. Design freeze. The print-ready banknote design approval by the Secretary of the Treasury. The second step of a two-step banknote redesign approval process that finalizes all design elements and additional details (e.g., final position of subject matter layout of other visual elements, and public security feature design details) and all non-public security features for a particular denomination.
   3. Iconography. The symbols and artwork used to tie in with the sub-theme for each banknote or the theme of the overall family of banknotes; usually reflected in security features and offset visual design elements.
   4. Microprint. Extremely small text or patterns not legible with the naked eye used as a security technique to make the banknote more difficult to reproduce.
   5. Security feature. Unique features, such as images, special ink, hidden watermarks, and magnetic signatures that are embedded in a banknote to provide ways to validate its authenticity and prevent counterfeiting. U.S. currency incorporates public, machine-readable, and covert security features.
   6. Subject matter. The images (e.g. person, landmark, or place) that are represented on the front and back of each banknote.
5. RESPONSIBILITIES.
   1. Treasury Secretary.
      1. 1) Designates the Chair and Treasury members of the Advanced Counterfeit Deterrence Steering Committee (“ACD Steering Committee”) and together with the Chair or the Federal Reserve Board and the Secretary of the Department of Homeland Security defines the responsibilities of the ACD Steering Committee.
      2. 2) Upon consultation with the Chair of the Federal Reserve Board, decides on whether to initiate the redesign of new Federal Reserve notes, either for individual denominations or as a family of banknotes.
      3. 3) Approves the sequence in which new banknotes should be redesigned and similarly makes decisions to changes in sequence redesign as recommended by the ACD Steering Committee.
      4. 4) Makes all final decisions regarding banknote images, including theme, sub-theme, subject matter (image) strategy, concept freeze (image approval by denomination), design freeze (print-ready design approval by denomination), and security feature design (iconography and microprint). The Secretary delegates the selection of security feature effects, commonly used microprint, and minor visual design elements and adjustments to the Director, Bureau of Engraving and Printing (BEP Director).
      5. 5) Approves the public and machine-readable security features for new banknotes as recommended by the ACD Steering Committee.
      6. 6) Together with the Federal Reserve Board, decides on the public outreach and education strategy for the release of new banknotes.
   2. Treasurer of the United States. Performs responsibilities as delegated in TO 101-05 and as defined in the ACD Charter.
   3. Fiscal Assistant Secretary. Performs responsibilities as delegated in TO 101-07 and as defined in the ACD Charter.
   4. Assistant Treasurer for Currency Production. In consultation with the BEP Director, evaluates and escalates risks to Departmental stakeholders. Advises principles on established governance processes, and procedures.
   5. ACD Steering Committee. Treasury members perform responsibilities as defined in the ACD Charter.
   6. Director, Bureau of Engraving and Printing.
      1. 1) Performs responsibilities under TO 101-07 pertaining to delegations related to the design and production of Federal Reserve notes.
      2. 2) Monitors and escalates risks to the Treasurer, Assistant Treasurer for Currency Production, ACD Chair, and other Departmental stakeholders as appropriate.
      3. 3) Develops options on banknote design and images to present to the Secretary.
      4. 4) Develops initial schedule for redesign efforts, approves changes to the initial schedule, and oversees execution of the schedule in coordination with the ACD Steering Committee.
      5. 5) As delegated in 5.a.(4) above, approves security feature effects, commonly used microprint, and minor visual design elements and adjustments to redesigned banknotes.
6. AUTHORITIES.
   1. 12 U.S.C. §§ 411, 412, 414, 417.
   2. 12 U.S.C. §§ 418-420.
   3. 31 U.S.C. § 303.
   4. 31 U.S.C. § 321(a)(4)
   5. 31 U.S.C. § 5114.
   6. TO 101-05.
   7. TO 101-07.
   8. ACD Charter.
7. OFFICE OF PRIMARY INTEREST.  Office of the Secretary, Office of the Treasurer of the United States, Office of the Fiscal Assistant Secretary, and Bureau of Engraving and Printing.