By a 2-1 vote, the court upheld a ruling by U.S. District Judge James Robertson in a lawsuit filed by The American Council of the Blind against the U.S. Treasury Department.
The council accused the department and Treasury Secretary Henry Paulson of violating the Rehabilitation Act, which was meant to ensure that people with disabilities can live independently and fully participate in society.
The appeals court rejected the Treasury Department's arguments that accommodating the Council's proposals would impose an undue burden on the government, and sent the case back to Robertson to address the group's request for relief.
The American Council of the Blind has proposed several possible changes to U.S. currency, including different size bills for different denominations, embossed dots and raised printing.
"A large majority of other currency systems have accommodated the visually impaired, and the secretary does not explain why U.S. currency should be any different," Judge Judith Rogers wrote in the appeal court's opinion.
(Reporting by James Vicini; Editing by Frances Kerry and David Storey)