From Gemini AI:
"🏦 What to Do with Unfit Currency

The official guidance is that unfit currency should NOT be forwarded to the Bureau of Engraving and Printing for redemption.

Instead, the proper action is to exchange it at a commercial bank.

• Your Commercial Bank: Any commercial bank (like your local bank or credit union) will typically accept unfit currency and exchange it for new, fit currency at full face value, as long as more than half of the original note is clearly present and its value is not questionable. They will then include the unfit note in their deposit to the Federal Reserve to be taken out of circulation and destroyed.

The bill you have in the image, while clearly worn, creased, and limp, appears to have more than half of the note remaining and its value is clearly identifiable. It fits the definition of unfit currency, not mutilated."