Proposed $250 bill could be a boon for drug cartels, experts warn

A proposal to create the largest U.S. currency denomination in more than 50 years could unintentionally benefit drug cartels, money launderers and tax cheats, according to experts and Treasury Department records.

The Donald J. Trump $250 Bill Act, introduced by Rep. Joe Wilson, R-S.C., would create a new denomination featuring President Donald Trump to commemorate the nation's 250th anniversary. The bill is pending before the House Financial Services Committee.

In 1998 testimony before Congress, a Treasury Department official warned that a $500 bill would allow $1 million in drug proceeds to weigh as little as 4.4 pounds – compared to about 22 pounds in $100 bills – making the cash easier and cheaper to move covertly.

A $250 bill would reduce that weight to about 9 pounds – roughly 60% less than the equivalent amount in $100 bills – according to Peter Reuter, a University of Maryland professor who has studied illicit money flows for decades.

Treasury Assistant Secretary for Financial Markets Gary Gensler told Congress in 1998 that the department had "no plans to reissue" high-denomination notes because of concerns about criminal activity.

The United States stopped issuing $500, $1,000, $5,000 and $10,000 bills in 1969. Treasury and Federal Reserve officials cited declining demand, although law enforcement officials have long said the bills were especially useful for organized crime, tax evasion and money laundering.

A Treasury spokeswoman did not address questions from The Center Square about whether a $250 bill could pose criminal-use risks or what safeguards might accompany the denomination if authorized by Congress. She said the Bureau of Engraving and Printing "is conducting appropriate planning and due diligence" should the legislation pass.

U.S. Treasurer Brandon Beach wrote to Wilson on May 19, 2025, offering to provide mockups of the proposed denomination to assist with the legislative process.

"If you need mockups of a $250.00 bill to help you during the legislative process, do not hesitate to reach out to me and we will provide you with anything you need to be successful," Beach wrote.

Wilson's communications director David Snider confirmed that Treasury Secretary Scott Bessent and Trump have both spoken with Wilson in support of the legislation "on multiple occasions."

Snider also said Wilson and House Financial Services Committee Chairman French Hill, R-Ark., have discussed moving the bill forward multiple times.

Reuter called the proposed $250 bill "a godsend for old-fashioned money launderers."

Reuter said criminals once paid a premium to convert smaller euro notes into €500 bills – formerly the largest euro denomination – because larger bills reduced the physical size of cash shipments. The €500 note became so associated with criminal activity that it was nicknamed the "Bin Laden." The European Central Bank stopped issuing the note in 2019 amid concerns that it facilitated money laundering and other crimes.

Reuter said a $250 bill would be less valuable in inflation-adjusted terms than €500 was a decade ago, but said reducing the physical size of cash shipments would still provide advantages for criminal organizations.

"In a world with decreasing use of cash, it is hard to see why we need a new high-denomination bill," he said. "Despite the rise of crypto, cash is still king for many launderers."

Wilson previously said the larger denomination would help Americans carry less cash because of inflation and would "symbolically recognize the President of the United States during the Semiquincentennial anniversary."

Snider did not address questions about whether the congressman had considered the criminal-use implications of the legislation.

The bill has 15 cosponsors and was referred to the House Financial Services Committee in February 2025, where it remains pending. The Congressional Budget Office had not issued a cost estimate for the legislation as of Friday.

Bessent said Thursday that Treasury officials have prepared preliminary designs in the event the legislation becomes law, but said the department would "stick to the law."

The legislation would need to pass both chambers of Congress before reaching Trump's desk for signature.