Yes, if it can be identified. The Treasury will exchange mutilated currency that can be identified. Your local bank might also replace damaged currency, depending on its condition. However, the cost exceeds the face value of the notes on the sheet. The extra charge is to cover processing and packaging costs.
Postage is also extra.
Federal Reserve Banks distribute small packets of shredded currency to tour groups and sometimes they are used for other information and public relations programs. Larger quantities of shredded currency in bulk form may be secured with Treasury Department approval. All U.S. currency is made of 75 percent cotton and 25 percent linen. Mass. The Crane Company created the patent for this special paper for the Treasury in 1879. Access the publications listed on this web site or the 11 other Federal Reserve Bank web sites for additional information.