My recollection of the story is that he would laminate them into "tablets" with rubber cement and then tear off the top sheet(s) to make a payment. I think I have that story bookmarked somewhere.

EDIT: I'm not sure where the "printing" part of this story comes into play but it looks like his tablets do indeed have multiple bills per sheet in addition to being laminated at the top. (https://hackaday.com/2012/08/03/woz-prints-and-spend-his-own...)

You can buy uncut sheets of bills directly from the US mint. I got a sheet of 12x $1 bills when I visited DC as a child.

See here: https://www.moneyfactorystore.gov/1currencysheets.aspx

Right ... but I suspect his local printer was involved in turning them into a tablet of a given size rather than actually printing the bills.

Yep, he got a print shop to apply rubber cement and perforate the sheets.

Does anyone know how is that not illegal?

Even if they meet the required standards I thought only the government was allowed to print bills.

Does anyone have any links or references to what Woz is saying?

He's pulling the host's leg; the "high quality print shop" he buys them from is the Bureau of Printing and Engraving [1].

Of course, when you're interviewing a prankster about pranks, you've got to expect that sort of thing :)

[1] http://archive.woz.org/letters/general/78.html

Aha!

That makes perfect sense. And of course I fell for it...

Thanks!