Who woulda thunk what I found?

Does the Treasury Department sell shredded paper currency? Where can I buy it?
Yes. The Bureau of Engraving and Printing (BEP) destroys currency notes that are found to be imperfect during the printing process. The BEP packages small bags of shredded currency from the destroyed new currency, and sells these bags as mementos to visitors at the BEP's Washington , DC and Fort Worth , TX Visitor Centers. The BEP also sells five pound bags of shredded currency through the mail. Orders can be placed on the BEP's website, www.moneyfactory.gov or by calling 1-800-456-3408.

The Federal Reserve System destroys worn currency notes at some of its various banks located throughout the country. Shredded currency is available only from certain Federal Reserve Banks. They sell it only under contract to buyers who will purchase the entire residue for at least a one year period. It is not readily available for distribution or for sale in small quantities to individuals because of operational difficulties and excessive administrative work for Federal Reserve Banks.

The Treasury Department approves the use of shredded currency in certain circumstances. One permitted use is recycling it (mixing it with other materials) to form a useful manufactured product such as roofing shingles or insulation. In addition, the shredded currency may be placed in firmly sealed containers as novelty items like pens, ornaments and jewelry. However, the Treasury will allow companies or other parties to sell the shredded currency in its original form or where it is readily not recoverable.

Okay. I found the following info.

Quote:

Does the Treasury Department sell shredded paper currency? Where can I buy it?
Yes. The Bureau of Engraving and Printing (BEP) destroys currency notes that are found to be imperfect during the printing process. The BEP packages small bags of shredded currency from the destroyed new currency, and sells these bags as mementos to visitors at the BEP's Washington , DC and Fort Worth , TX Visitor Centers. The BEP also sells five pound bags of shredded currency through the mail. Orders can be placed on the BEP's website, www.moneyfactory.gov or by calling 1-800-456-3408.

The Federal Reserve System destroys worn currency notes at some of its various banks located throughout the country. Shredded currency is available only from certain Federal Reserve Banks. They sell it only under contract to buyers who will purchase the entire residue for at least a one year period. It is not readily available for distribution or for sale in small quantities to individuals because of operational difficulties and excessive administrative work for Federal Reserve Banks.

The Treasury Department approves the use of shredded currency in certain circumstances. One permitted use is recycling it (mixing it with other materials) to form a useful manufactured product such as roofing shingles or insulation. In addition, the shredded currency may be placed in firmly sealed containers as novelty items like pens, ornaments and jewelry. However, the Treasury will allow companies or other parties to sell the shredded currency in its original form or where it is readily not recoverable.

https://www.treasury.gov/resource-center/faqs/currency/pages/edu_faq_currency_sales.aspx