UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

 INVESTMENT COMPANIES

Investment Company Act file number 811-03395

Franklin Federal Tax-Free Income Fund

(Exact name of registrant as specified in charter)

_One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices)   (Zip code)

_Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000

Date of fiscal year end: _4/30

Date of reporting period: _10/31/20

Item 1. Reports to Stockholders.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Federal

Tax-Free

Income

Fund

October

31,

2020

Sign

up

for

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delivery

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Internet

Delivery

of

Fund

Reports

Unless

You

Request

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Copies

:

Effective

January

1,

2021,

as

permitted

by

the

SEC,

paper

copies

of

the

Fund’s

shareholder

reports

will

no

longer

be

sent

by

mail,

unless

you

specifically

request

them

from

the

Fund

or

your

financial

intermediary.

Instead,

the

reports

will

be

made

available

on

a

website,

and

you

will

be

notified

by

mail

each

time

a

report

is

posted

and

provided

with

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website

link

to

access

the

report.

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charge

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your

account.

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

October

31,

2020,

first-

and

second-quarter

2020

data

reported

during

the

period

indicated

that

the

U.S.

economy

contracted

in

response

to

the

novel

coronavirus

(COVID-19)

pandemic.

In

the

third

quarter,

the

economy

recovered

substantially

based

on

increased

business

and

residential

investment

and

consumer

spending.

Before

the

reporting

period,

the

U.S.

Federal

Reserve,

in

its

efforts

to

support

U.S.

economic

activity,

lowered

the

federal

funds

rate

twice

in

March

2020

and

implemented

broad

quantitative

easing

measures

to

support

credit

markets.

During

the

reporting

period,

the

Federal

Reserve

held

its

key

rate

unchanged

at

0.25%,

but

continued

quantitative

easing

and

adjusted

its

policy

in

August

2020

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

During

the

six-month

period,

municipal

bonds

delivered

positive

total

returns

as

investors

were

attracted

to

tax-

free

income

in

a

low

interest-rate

environment.

Factors

contributing

to

this

positive

investment

environment

for

municipals

included

relatively

low

inflation,

interest-rate

stability

and

recent

actions

by

the

Federal

Reserve

to

support

the

municipal

bond

market.

On

July

1,

2020,

we

appointed

Ben

Barber

as

senior

vice

president

and

director

of

our

municipal

bond

department,

and

we

are

pleased

that

he

has

rejoined

Franklin.

Ben

most

recently

served

as

co-head

of

municipal

bonds

at

Goldman

Sachs

Asset

Management.

Ben

started

his

career

of

over

28

years

of

municipal

bond

investing

at

Franklin

in

1991,

working

with

several

current

investment

team

members

through

1999,

when

he

joined

Goldman

Sachs.

Franklin

Federal

Tax-Free

Income

Fund’s

semiannual

report

includes

more

detail

about

municipal

bond

market

conditions

and

a

discussion

from

the

portfolio

managers.

In

addition,

on

our

website,

franklintempleton.com

,

you

can

find

updated

commentary

by

our

municipal

bond

experts.

Municipal

bonds

provide

tax-free

income

and

diversification

from

equities.

Despite

periods

of

volatility,

municipal

bonds

historically

have

had

a

solid

long-term

record

of

performance,

driven

mostly

by

their

compounding

tax-free

income

component.

As

you

know,

all

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

As

always,

we

recommend

investors

consult

their

financial

advisors

to

help

them

make

the

best

decisions

for

the

long

term.

In

a

constantly

changing

market

environment,

we

remain

committed

to

our

disciplined

strategy

as

we

manage

the

Fund,

keeping

in

mind

the

trust

you

have

placed

in

us.

We

appreciate

your

confidence

in

us

and

encourage

you

to

contact

us

or

your

financial

advisor

when

you

have

questions

about

your

Franklin

tax-free

investment.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Federal

Tax-Free

Income

Fund

Ben

Barber

Senior

Vice

President

Director

of

Municipal

Bonds

This

letter

reflects

our

analysis

and

opinions

as

of

October

31,

2020

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

Federal

Tax-Free

Income

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

8

Financial

Highlights

and

Statement

of

Investments

9

Financial

Statements

42

Notes

to

Financial

Statements

46

Shareholder

Information

53

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Federal

Tax-Free

Income

Fund

This

semiannual

report

for

Franklin

Federal

Tax-Free

Income

Fund

covers

the

period

ended

October

31,

2020

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

as

high

a

level

of

income

exempt

from

federal

income

taxes

as

is

consistent

with

prudent

investment

management

and

preservation

of

shareholders’

capital.

The

Fund

invests

at

least

80%

of

its

total

assets

in

investment-grade

municipal

securities

whose

interest

is

free

from

federal

income

taxes,

including

the

federal

alternative

minimum

tax.

1

Performance

Overview

The

Fund’s

Class

A

share

price,

as

measured

by

net

asset

value,

increased

from

$11.60

on

April

30,

2020,

to

$12.01

on

October

31,

2020.

The

Fund’s

Class

A

shares

paid

dividends

totaling

16.8438

cents

per

share

for

the

reporting

period.

2

The

Performance

Summary

beginning

on

page

6

shows

that

at

the

end

of

this

reporting

period

the

Fund’s

Class

A

shares’

distribution

rate

was

2.59%

based

on

an

annualization

of

October’s

2.6972

cents

per

share

dividend

and

the

maximum

offering

price

of

$12.01

on

October

31,

2020.

An

investor

in

the

2020

maximum

federal

personal

income

tax

bracket

of

37.00%

(plus

3.80%

Medicare

tax)

would

need

to

earn

a

distribution

rate

of

4.38%

from

a

taxable

investment

to

match

the

Fund’s

Class

A

tax-free

distribution

rate.

For

other

performance

data,

please

see

the

Performance

Summary.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Municipal

Bond

Market

Overview

During

the

six

months

ended

October

31,

2020,

technical

conditions

in

the

municipal

(muni)

bond

market

continued

to

support

valuations

in

the

sector.

The

record

outflows

of

March

and

April

2020

were

more

than

replaced

by

a

relatively

steady

flow

of

new

funds

coming

into

the

market.

The

inflows

were

met

with

negative

net

supply

of

tax-exempt

bonds.

Issuers

have

increasingly

turned

to

the

taxable

muni

bond

market

to

refinance

tax-exempt

securities

with

new

debt

at

lower

all-in

yields.

However,

while

ratios

of

muni

bond

versus

U.S.

Treasury

(UST)

yields

continued

to

improve

from

the

dislocation

seen

in

the

market

during

the

March

selloff,

they

remained

significantly

wider

than

the

beginning

of

the

year.

The

U.S.

federal

government

was

unable

to

pass

another

round

of

fiscal

stimulus.

Many

muni

bond

issuers,

including

state

and

local

governments

and

school

districts,

are

requesting

extra

funds

from

the

federal

government

to

help

bolster

their

budgets.

Muni

issuers

are

facing

large

budget

deficits

as

revenues

have

fallen

due

to

lower

economic

activity.

At

the

same

time,

expenditures

increased

with

higher

payments

towards

unemployment

benefits

and

other

social

outlays

such

as

food

assistance

and

health

care.

States

and

local

governments

are

making

plans

for

tax

increases

or

reduced

spending

if

additional

funds

from

the

federal

government

are

not

made

available.

Credit

Quality

Composition

*

10/31/20

Ratings

%

of

Total

Investments

AAA

8.14%

AA

46.86%

A

30.06%

BBB

7.15%

Below

Investment

Grade

1.02%

Refunded

6.06%

Not

Rated

0.71%

*

Securities,

except

for

those

labeled

Not

Rated,

are

assigned

ratings

by

one

or

more

Nationally

Recognized

Statistical

Credit

Rating

Organizations

(NRSROs),

such

as

Standard

&

Poor’s,

Moody’s

and

Fitch,

that

can

be

considered

by

the

investment

manager

as

part

of

its

independent

securities

analysis.

When

ratings

from

multiple

agencies

are

available,

the

highest

is

used,

consistent

with

the

portfolio

investment

process.

Ratings

reflect

an

NRSRO’s

opinion

of

an

issuer’s

creditworthiness

and

typically

range

from

AAA

(highest)

to

D

(lowest).

The

Below

Investment

Grade

category

consists

of

bonds

rated

below

BBB-.

The

Refunded

category

generally

consists

of

refunded

bonds

secured

by

U.S.

government

or

other

high-quality

securities

and

not

rerated

by

an

NRSRO.

The

Not

Rated

category

consists

of

ratable

securities

that

have

not

been

rated

by

an

NRSRO.

Cash

and

equivalents

are

excluded

from

this

composition.

1.

Dividends

are

generally

subject

to

state

and

local

taxes,

if

any.

For

investors

subject

to

alternative

minimum

tax,

a

small

portion

of

Fund

dividends

may

be

taxable.

Distribu-

tions

of

capital

gains

are

generally

taxable.

To

avoid

imposition

of

28%

backup

withholding

on

all

Fund

distributions

and

redemption

proceeds,

U.S.

investors

must

be

properly

certified

on

Form

W-9

and

non-U.S.

investors

on

Form

W-8BEN.

2.

The

distribution

amount

is

the

sum

of

all

estimated

tax-basis

net

investment

income

distributions

for

the

period

shown.

A

portion

or

all

of

the

distribution

may

be

reclassified

as

return

of

capital

or

short-term

or

long-term

capital

gains

once

final

tax

designations

are

known.

Assumes

shares

were

purchased

and

held

for

the

entire

accrual

period.

Since

dividends

accrue

daily,

your

actual

distributions

will

vary

depending

on

the

date

you

purchased

your

shares

and

any

account

activity.

All

Fund

distributions

will

vary

depending

upon

current

market

conditions,

and

past

distributions

are

not

indicative

of

future

trends.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

Federal

Tax-Free

Income

Fund

4

franklintempleton.com

Semiannual

Report

In

the

six

months

ending

in

October,

revenue

bonds

outperformed

general

obligation

securities

and

lower-quality

investment-grade

issues

outperformed

their

higher-rated

counterparts.

Within

the

revenue

bond

segments,

industrial

and

hospital

bonds

were

the

best

performers,

while

resource

recovery

had

positive

returns

but

lagged

other

revenue

segments.

The

Investment

Company

Institute

(ICI)

reported

net

inflows

of

approximately

$6

billion

into

muni

bond

retail

vehicles

in

October

2020.

For

the

six-month

period,

muni

bond

retail

vehicles

saw

approximately

$49

billion

of

net

inflows,

according

to

the

ICI.

For

the

six-month

period,

U.S.

fixed

income

sectors

broadly

underperformed

relative

to

equities,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

which

posted

a

+13.29%

total

return

for

the

period.

3

Investment-grade

muni

bonds,

as

measured

by

the

Bloomberg

Barclays

Municipal

Bond

Index,

posted

a

+4.99%

total

return,

while

USTs,

as

measured

by

the

Bloomberg

Barclays

U.S.

Treasury

Index,

posted

a

-0.93%

total

return,

and

investment-grade

corporate

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Corporate

Bond

Index,

posted

a

+4.96%

total

return.

3

Although

the

muni

bond

market

has

seen

a

strong

recovery

since

March,

we

believe

strong

technical

support

will

continue

as

funds

flow

into

the

market,

with

negative

net

issuance

supporting

valuations.

It

is

our

view

that,

despite

the

ongoing

pandemic

and

its

resulting

economic

downturn,

a

second

market

disruption

related

to

the

novel

coronavirus

(COVID-19)

is

unlikely

to

unfold

in

the

muni

bond

market.

Most

municipalities

were

in

good

financial

shape

entering

the

COVID-19

shock

and

backed

their

muni

bond

borrowings

with

very

high

security.

Additionally,

most

governments

with

outstanding

debt

have

a

large

variety

of

revenue

sources

that

enhance

the

likelihood

of

meeting

their

financial

obligations.

We

retain

a

cautionary

stance

toward

muni

bond

credit,

where

strong

ongoing

credit

research

will

be

critical

for

those

looking

to

continue

capitalizing

on

opportunities

caused

by

market

disruptions,

including

in

sectors

that

have

lagged

during

the

recovery.

Our

research

analysts

have

been

intensely

reviewing

muni

market

sectors

and

subsectors

based

on

assessments

of

impact

and

resiliency

as

they

relate

to

the

coronavirus

as

well

as

relative

value

between

sectors

and

issuers.

Our

seasoned

team

of

analysts

and

portfolio

managers

has

weathered

very

difficult

times

before,

and

we

are

using

that

knowledge

to

navigate

through

this

environment.

Investment

Strategy

We

only

buy

municipal

securities

rated,

at

the

time

of

purchase,

in

one

of

the

top

four

ratings

categories

by

one

or

more

U.S.

nationally

recognized

rating

services

(or

unrated

or

short-term

rated

securities

of

comparable

credit

quality).

We

may

invest

in

insured

municipal

securities.

We

select

securities

we

believe

provide

the

best

balance

between

risk

and

return

within

the

Fund’s

range

of

allowable

investments

and

typically

use

a

buy-and-hold

strategy.

This

means

we

generally

hold

securities

in

the

Fund’s

portfolio

for

income

purposes,

rather

than

trading

securities

for

capital

gains,

although

we

may

sell

a

security

at

any

time

if

we

believe

it

could

help

the

Fund

meet

its

goal.

Manager’s

Discussion

Our

relative

value-oriented

approach

of

investing

primarily

for

income

and

preservation

of

principal,

when

combined

with

a

positive-sloping

municipal

yield

curve,

in

which

yields

for

longer

term

bonds

are

higher

than

those

for

shorter-

term

bonds,

led

us

to

favor

longer-term

bonds

during

the

period

under

review.

Consistent

with

our

strategy,

we

sought

to

remain

invested

in

bonds

ranging

from

20

to

30

years

in

maturity

with

good

call

features.

Our

relative-value,

income-oriented

philosophy

also

led

the

Fund

to

invest

in

credit

driven

securities

rated

A

and

below

as

credit

spreads

widened,

which

provided

both

income

and

performance

during

the

reporting

period.

We

believe

our

disciplined

relative

value

approach

can

help

us

achieve

high,

current,

tax-free

income

for

shareholders.

Portfolio

Composition

10/31/20

%

of

Total

Investments

*

Transportation

22.60%

Hospital

&

Health

Care

18.06%

Utilities

17.79%

General

Obligation

9.68%

Refunded**

8.87%

Tax-Supported

8.87%

Subject

to

Government

Appropriations

4.79%

Higher

Education

4.25%

Housing

2.52%

Other

Revenue

1.73%

Corporate-Backed

0.84%

*

Does

not

include

cash

and

cash

equivalents.

**

Includes

all

refunded

bonds;

the

percentage

may

differ

from

that

in

the

Credit

Quality

Composition.

3.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Franklin

Federal

Tax-Free

Income

Fund

5

franklintempleton.com

Semiannual

Report

Thank

you

for

your

continued

participation

in

Franklin

Federal

Tax-Free

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

October

31,

2020

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

state,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

October

31,

2020

Franklin

Federal

Tax-Free

Income

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

10/31/20

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

3.75%

and

the

minimum

is

0%.

Class

A

:

3.75%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3,4

6-Month

+4.99%

+1.05%

1-Year

+2.86%

-1.00%

5-Year

+15.57%

+2.15%

10-Year

+44.75%

+3.37%

Advisor

6-Month

+5.11%

+5.11%

1-Year

+3.03%

+3.03%

5-Year

+16.52%

+3.11%

10-Year

+46.74%

+3.91%

Share

Class

Distribution

Rate

5

Taxable

Equivalent

Distribution

Rate

6

30-Day

Standardized

Yield

7

Taxable

Equivalent

30-Day

Standardized

Yield

6

A

2.59%

4.38%

1.64%

2.77%

Advisor

2.94%

4.96%

1.95%

3.29%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Federal

Tax-Free

Income

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

municipal

bonds

are

sensitive

to

interest-rate

movements,

the

Fund’s

yield

and

share

price

will

fluctuate

with

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Puerto

Rico

municipal

bonds

have

been

impacted

by

recent

adverse

economic

and

market

changes,

which

may

cause

the

Fund’s

share

price

to

decline.

Changes

in

the

credit

rating

of

a

bond,

or

in

the

credit

rating

or

financial

strength

of

a

bond’s

issuer,

insurer

or

guarantor,

may

affect

the

bond’s

value.

The

Fund

may

invest

a

significant

part

of

its

assets

in

municipal

securities

that

finance

similar

types

of

projects,

such

as

utilities,

hospitals,

higher

education

and

transportation.

A

change

that

affects

one

project

would

likely

affect

all

similar

projects,

thereby

increasing

market

risk.

Unexpected

events

and

their

aftermaths,

such

as

the

spread

of

deadly

diseases;

natural,

environmental

or

man-made

disasters;

financial,

political

or

social

disruptions;

terrorism

and

war;

and

other

tragedies

or

catastrophes,

can

cause

investor

fear

and

panic,

which

can

adversely

affect

the

economies

of

many

companies,

sectors,

nations,

regions

and

the

market

in

general,

in

ways

that

cannot

necessarily

be

foreseen.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Effective

9/10/18,

Class

A

shares

closed

to

new

investors,

were

renamed

Class

A1

shares,

and

a

new

Class

A

share

with

a

different

expense

structure

became

available.

Class

A

performance

shown

has

been

calculated

as

follows:

(a)

for

periods

prior

to

9/10/18,

a

restated

figure

is

used

based

on

the

Fund’s

Class

A1

performance

that

includes

any

Rule

12b-1

rate

differential

that

exists

between

Class

A1

and

Class

A;

and

(b)

for

periods

after

9/10/18,

actual

Class

A

Performance

is

used,

reflecting

all

charges

and

fees

applicable

to

that

class.

4.

Prior

to

3/1/19,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

4.25%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

3.75%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

October

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

10/31/20.

6.

Taxable

equivalent

distribution

rate

and

yield

assume

the

2020

maximum

federal

income

tax

rate

of

37.00%

plus

3.80%

Medicare

tax.

7.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

8.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(5/1/20–10/31/20)

Share

Class

Net

Investment

Income

A

$0.168438

A1

$0.177516

C

$0.144369

R6

$0.185529

Advisor

$0.183557

Total

Annual

Operating

Expenses

8

Share

Class

A

0.77%

Advisor

0.52%

Your

Fund’s

Expenses

Franklin

Federal

Tax-Free

Income

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

5/1/20

Ending

Account

Value

10/31/20

Expenses

Paid

During

Period

5/1/20–10/31/20

1,

2

Ending

Account

Value

10/31/20

Expenses

Paid

During

Period

5/1/20–10/31/20

1,

2

a

Net

Annualized

Expense

Ratio

A

$1,000

$1,049.89

$3.98

$1,021.32

$3.93

0.77%

A1

$1,000

$1,050.68

$3.21

$1,022.07

$3.17

0.62%

C

$1,000

$1,047.84

$6.05

$1,019.29

$5.97

1.17%

R6

$1,000

$1,051.33

$2.51

$1,022.76

$2.48

0.49%

Advisor

$1,000

$1,051.15

$2.70

$1,022.58

$2.66

0.52%

Franklin

Federal

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

2020

Year

Ended

April

30,

2019

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..........................................

$11.60

$11.82

$11.62

Income

from

investment

operations

b

:

Net

investment

income

c

..................................................

0.17

0.35

0.25

Net

realized

and

unrealized

gains

(losses)

....................................

0.41

(0.22)

0.19

Total

from

investment

operations

.............................................

0.58

0.13

0.44

Less

distributions

from:

Net

investment

income

...................................................

(0.17)

(0.35)

(0.24)

Net

asset

value,

end

of

period

...............................................

$12.01

$11.60

$11.82

Total

return

d

............................................................

4.99%

1.07%

3.87%

Ratios

to

average

net

assets

e

Expenses

f

..............................................................

0.77%

0.77%

0.78%

Net

investment

income

....................................................

2.85%

2.96%

3.45%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.............................................

$1,492,732

$1,110,207

$567,500

Portfolio

turnover

rate

.....................................................

10.65%

20.23%

14.58%

a

For

the

period

September

10,

2018

(effective

date)

to

April

30,

2019.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

2020

2019

2018

2017

2016

Class

A1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.60

$11.82

$11.68

$12.02

$12.48

$12.45

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.18

0.37

0.42

0.44

0.47

0.48

Net

realized

and

unrealized

gains

(losses)

0.41

(0.22)

0.16

(0.34)

(0.47)

0.02

Total

from

investment

operations

........

0.59

0.15

0.58

0.10

—

0.50

Less

distributions

from:

Net

investment

income

..............

(0.18)

(0.37)

(0.44)

(0.44)

(0.46)

(0.47)

Net

asset

value,

end

of

period

..........

$12.01

$11.60

$11.82

$11.68

$12.02

$12.48

Total

return

c

.......................

5.07%

1.22%

5.06%

0.85%

0.01%

4.16%

Ratios

to

average

net

assets

d

Expenses

.........................

0.62%

e

0.62%

e

0.63%

e

0.63%

0.62%

0.61%

Net

investment

income

...............

3.01%

3.11%

3.60%

3.66%

3.82%

3.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,936,791

$6,833,018

$7,821,881

$8,616,659

$9,342,715

$8,384,079

Portfolio

turnover

rate

................

10.65%

20.23%

14.58%

16.46%

13.86%

6.07%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.59

$11.81

$11.68

$12.01

$12.47

$12.44

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.31

0.35

0.37

0.40

0.41

Net

realized

and

unrealized

gains

(losses)

0.40

(0.22)

0.15

(0.32)

(0.47)

0.03

Total

from

investment

operations

........

0.55

0.09

0.50

0.05

(0.07)

0.44

Less

distributions

from:

Net

investment

income

..............

(0.14)

(0.31)

(0.37)

(0.38)

(0.39)

(0.41)

Net

asset

value,

end

of

period

..........

$12.00

$11.59

$11.81

$11.68

$12.01

$12.47

Total

return

c

.......................

4.78%

0.67%

4.39%

0.37%

(0.55)%

3.59%

Ratios

to

average

net

assets

d

Expenses

.........................

1.17%

e

1.17%

e

1.18%

e

1.18%

1.17%

1.16%

Net

investment

income

...............

2.47%

2.56%

3.05%

3.11%

3.27%

3.32%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$565,848

$657,344

$841,909

$1,220,402

$1,411,391

$1,215,034

Portfolio

turnover

rate

................

10.65%

20.23%

14.58%

16.46%

13.86%

6.07%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

Year

Ended

April

30,

2018

a

2020

2019

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$11.61

$11.83

$11.69

$12.03

Income

from

investment

operations

b

:

Net

investment

income

c

......................................

0.19

0.39

0.44

0.34

Net

realized

and

unrealized

gains

(losses)

........................

0.41

(0.22)

0.15

(0.38)

Total

from

investment

operations

.................................

0.60

0.17

0.59

(0.04)

Less

distributions

from:

Net

investment

income

.......................................

(0.19)

(0.39)

(0.45)

(0.30)

Net

asset

value,

end

of

period

...................................

$12.02

$11.61

$11.83

$11.69

Total

return

d

................................................

5.13%

1.37%

5.19%

(0.32)%

Ratios

to

average

net

assets

e

Expenses

..................................................

0.49%

f

0.49%

f,g

0.49%

f,g

0.49%

g

Net

investment

income

........................................

3.13%

3.24%

3.74%

3.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$237,044

$196,774

$177,983

$365,406

Portfolio

turnover

rate

.........................................

10.65%

20.23%

14.58%

16.46%

a

For

the

period

August

1,

2017

(effective

date)

to

April

30,

2018.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annuali

zed

for

periods

less

than

one

year.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.61

$11.83

$11.69

$12.03

$12.49

$12.46

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.19

0.38

0.43

0.45

0.48

0.49

Net

realized

and

unrealized

gains

(losses)

0.40

(0.22)

0.16

(0.33)

(0.47)

0.03

Total

from

investment

operations

........

0.59

0.16

0.59

0.12

0.01

0.52

Less

distributions

from:

Net

investment

income

..............

(0.18)

(0.38)

(0.45)

(0.46)

(0.47)

(0.49)

Net

asset

value,

end

of

period

..........

$12.02

$11.61

$11.83

$11.69

$12.03

$12.49

Total

return

c

.......................

5.11%

1.33%

5.15%

0.95%

0.11%

4.26%

Ratios

to

average

net

assets

d

Expenses

.........................

0.52%

e

0.52%

e

0.53%

e

0.53%

0.52%

0.51%

Net

investment

income

...............

3.10%

3.21%

3.70%

3.76%

3.92%

3.97%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,649,665

$1,465,542

$1,210,861

$1,207,490

$1,633,602

$1,443,272

Portfolio

turnover

rate

................

10.65%

20.23%

14.58%

16.46%

13.86%

6.07%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited),

October

31,

2020

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

99.4%

Alabama

1.1%

Alabama

Incentives

Financing

Authority

,

Revenue

,

2012-A

,

Pre-Refunded

,

5

%

,

9/01/42

$

14,300,000

$

15,499,341

Alabama

Public

Health

Care

Authority

,

State

of

Alabama

Department

of

Public

Health

,

Revenue

,

2015

,

Refunding

,

5

%

,

9/01/44

.................................

17,085,000

19,777,938

Board

of

Water

&

Sewer

Commissioners

of

the

City

of

Mobile

,

Revenue

,

2014

,

Refunding

,

5

%

,

1/01/36

.............................................

11,300,000

12,259,031

Chilton

County

Health

Care

Authority

,

Revenue

,

2015

A

,

5

%

,

11/01/40

............

8,425,000

9,569,031

a

County

of

Mobile

,

Revenue

,

144A,

2020

,

4

%

,

11/01/45

.......................

10,000,000

9,984,300

Health

Care

Authority

of

the

City

of

Huntsville

(The)

,

Obligated

Group,

Revenue,

2020

B,

4%,

6/01/45

..........................

3,500,000

3,858,050

Obligated

Group,

Revenue,

2020

B,

AGMC

Insured,

3%,

6/01/50

..............

8,530,000

8,477,284

Limestone

County

Water

&

Sewer

Authority

,

Revenue

,

2017

,

Refunding

,

BAM

Insured

,

5

%

,

12/01/45

.....................................................

10,500,000

12,353,460

University

of

South

Alabama

,

Revenue

,

2019

A

,

BAM

Insured

,

5

%

,

4/01/49

........

5,000,000

5,969,950

Water

Works

Board

of

the

City

of

Birmingham

(The)

,

Revenue,

2013B,

Pre-Refunded,

5%,

1/01/43

.............................

8,000,000

8,816,640

Revenue,

2016

B,

Refunding,

5%,

1/01/43

...............................

10,000,000

11,926,300

118,491,325

Alaska

0.6%

Alaska

Industrial

Development

&

Export

Authority

,

Providence

St.

Joseph

Health

Obligated

Group

,

Revenue

,

2011A

,

5

%

,

10/01/40

..........................

10,000,000

10,258,600

Alaska

Municipal

Bond

Bank

Authority

,

Revenue,

2015,

Refunding,

5.25%,

10/01/36

.............................

16,045,000

18,395,432

Revenue,

2015,

Refunding,

5%,

10/01/39

................................

12,950,000

14,610,449

City

of

Anchorage

,

Electric

,

Revenue,

Senior

Lien

,

2014A

,

Refunding

,

5

%

,

12/01/41

.

8,875,000

10,242,726

State

of

Alaska

,

International

Airports

System

,

Revenue

,

2010C

,

5

%

,

10/01/33

.....

12,565,000

12,586,486

66,093,693

Arizona

2.4%

Arizona

Industrial

Development

Authority

,

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020A,

4%,

11/01/45

.......................................................

2,200,000

2,475,990

Equitable

School

Revolving

Fund

LLC

Obligated

Group,

Revenue,

2020A,

4%,

11/01/50

.......................................................

2,500,000

2,802,225

Arizona

State

University

,

Revenue

,

2016

C

,

5

%

,

7/01/42

......................

9,000,000

10,657,260

b

Chandler

Industrial

Development

Authority

,

Intel

Corp.

,

Revenue

,

2019

,

Mandatory

Put

,

5

%

,

6/03/24

......................................................

15,000,000

17,233,350

City

of

Lake

Havasu

City

,

Wastewater

System

,

Revenue

,

2015B

,

Refunding

,

AGMC

Insured

,

5

%

,

7/01/40

...............................................

15,000,000

17,534,400

City

of

Mesa

,

Utility

System

,

Revenue

,

2012

,

4

%

,

7/01/36

.....................

19,000,000

19,717,630

City

of

Phoenix

Civic

Improvement

Corp.

,

Airport,

Revenue,

Junior

Lien,

2017

D,

Refunding,

4%,

7/01/40

...............

25,000,000

27,308,250

Airport,

Revenue,

Junior

Lien,

2019

B,

5%,

7/01/49

........................

16,000,000

18,691,680

Phoenix

Sky

Harbor

International

Airport

Customer

Facility

Charges,

Revenue,

2019

A,

4%,

7/01/45

..................................................

14,985,000

15,205,429

State

of

Arizona

Department

of

Revenue,

Revenue,

2005

B,

NATL

Insured,

5.5%,

7/01/32

........................................................

6,000,000

8,392,320

State

of

Arizona

Department

of

Revenue,

Revenue,

2005

B,

NATL

Insured,

5.5%,

7/01/34

........................................................

5,000,000

7,209,000

State

of

Arizona

Department

of

Revenue,

Revenue,

2005

B,

NATL

Insured,

5.5%,

7/01/35

........................................................

9,860,000

14,418,081

Glendale

Municipal

Property

Corp.

,

Revenue

,

2012C

,

Refunding

,

5

%

,

7/01/38

......

15,500,000

16,815,485

Maricopa

County

Industrial

Development

Authority

,

Banner

Health

Obligated

Group,

Revenue,

2019

A,

4%,

1/01/44

...............

25,000,000

28,267,250

Banner

Health

Obligated

Group,

Revenue,

A,

4%,

1/01/41

...................

10,000,000

11,194,400

Christian

Care

Obligated

Group,

Revenue,

2016A,

Refunding,

5%,

1/01/36

......

5,000,000

5,600,150

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Arizona

(continued)

Maricopa

County

Pollution

Control

Corp.

,

El

Paso

Electric

Co.

,

Revenue

,

2009A

,

Refunding

,

3.6

%

,

2/01/40

............................................

$

19,500,000

$

20,866,170

Pinal

County

Electric

District

No.

3

,

Revenue

,

2011

,

Pre-Refunded

,

5.25

%

,

7/01/36

..

10,000,000

10,334,800

University

of

Arizona

(The)

,

Revenue

,

2014

,

5

%

,

8/01/44

......................

10,000,000

11,150,300

265,874,170

Arkansas

0.5%

Arkansas

Development

Finance

Authority

,

Baptist

Health

Obligated

Group,

Revenue,

2019,

5%,

12/01/47

................

3,025,000

3,601,716

Baptist

Memorial

Health

Care

Obligated

Group,

Revenue,

2020

B-1,

Refunding,

5%,

9/01/40

........................................................

1,100,000

1,320,913

Baptist

Memorial

Health

Care

Obligated

Group,

Revenue,

2020

B-1,

Refunding,

5%,

9/01/44

........................................................

5,000,000

5,929,000

Bentonville

School

District

No.

6

,

GO

,

B

,

Refunding

,

4

%

,

6/01/47

................

27,935,000

30,639,667

University

of

Arkansas

,

Revenue,

2017,

5%,

11/01/47

........................................

6,500,000

7,788,300

Revenue,

2019A,

Refunding,

5%,

11/01/49

...............................

3,000,000

3,670,080

52,949,676

California

5.9%

California

Infrastructure

&

Economic

Development

Bank

,

Academy

of

Motion

Picture

Arts

and

Sciences

Obligated

Group,

Revenue,

2020B,

Refunding,

5%,

11/01/29

...........................................

3,000,000

3,890,790

State

of

California

Department

of

Transportation

Seismic

Surcharge,

Revenue,

First

Lien,

2003

A,

Pre-Refunded,

AMBAC

Insured,

5%,

7/01/33

.................

24,500,000

32,407,620

California

State

Public

Works

Board

,

Revenue,

2012

A,

AGMC

Insured,

5%,

4/01/28

............................

13,030,000

13,869,132

Revenue,

2012

A,

AGMC

Insured,

5%,

4/01/29

............................

21,000,000

22,330,980

Revenue,

2012

A,

5%,

4/01/30

........................................

18,000,000

19,135,440

Revenue,

2012

A,

5%,

4/01/33

........................................

12,475,000

13,251,070

Corona-Norco

Unified

School

District

,

GO,

C,

AGMC

Insured,

6.2%,

8/01/29

..................................

3,250,000

4,414,605

GO,

C,

Pre-Refunded,

AGMC

Insured,

6.8%,

8/01/39

.......................

8,500,000

11,985,000

GO,

C,

AGMC

Insured,

Zero

Cpn.,

8/01/39

...............................

7,500,000

4,461,150

Foothill-Eastern

Transportation

Corridor

Agency

,

Revenue,

2013

A,

Refunding,

5.75%,

1/15/46

.............................

25,000,000

27,923,250

Revenue,

2013

A,

Pre-Refunded,

6%,

1/15/49

............................

20,000,000

23,634,800

Revenue,

2013

A,

Refunding,

AGMC

Insured,

Zero

Cpn.,

1/15/30

..............

15,475,000

17,876,565

Revenue,

2013

A,

Refunding,

Zero

Cpn.,

1/15/42

..........................

20,000,000

22,577,000

Jefferson

Union

High

School

District

,

GO,

D,

Pre-Refunded,

Zero

Cpn.,

8/01/35

...............................

10,500,000

3,344,985

GO,

D,

Pre-Refunded,

Zero

Cpn.,

8/01/40

...............................

10,000,000

2,103,900

GO,

D,

Pre-Refunded,

Zero

Cpn.,

8/01/41

...............................

13,590,000

2,629,393

Los

Angeles

Department

of

Water

&

Power

,

Power

System

,

Revenue

,

2013

B

,

5

%

,

7/01/31

.........................................................

20,000,000

22,408,600

M-S-R

Energy

Authority

,

Revenue

,

2009B

,

6.5

%

,

11/01/39

.....................

12,500,000

19,472,625

New

Haven

Unified

School

District

,

GO,

2009,

AGMC

Insured,

Zero

Cpn.,

8/01/31

............................

2,055,000

1,705,465

GO,

2009,

AGMC

Insured,

Zero

Cpn.,

8/01/32

............................

7,830,000

6,299,392

GO,

2009,

AGMC

Insured,

Zero

Cpn.,

8/01/33

............................

7,660,000

5,972,502

Oro

Grande

Elementary

School

District

,

COP,

2020,

Refunding,

4%,

9/15/24

....................................

2,135,000

2,307,572

COP,

2020,

Refunding,

4%,

9/15/25

....................................

2,120,000

2,329,265

COP,

2020,

Refunding,

4%,

9/15/27

....................................

2,400,000

2,664,888

COP,

2020,

Refunding,

4%,

9/15/28

....................................

2,095,000

2,334,542

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

California

(continued)

Rialto

Unified

School

District

,

GO

,

2011A

,

AGMC

Insured

,

Zero

Cpn.,

8/01/36

......

$

20,000,000

$

12,976,000

San

Francisco

City

&

County

Airport

Comm-San

Francisco

International

Airport

,

Revenue,

2019

A,

Refunding,

5%,

5/01/49

...............................

38,000,000

44,732,460

Revenue,

Second

Series,

2019E,

5%,

5/01/50

............................

1,500,000

1,763,985

San

Joaquin

Hills

Transportation

Corridor

Agency

,

Revenue,

Senior

Lien,

1993,

ETM,

Zero

Cpn.,

1/01/23

......................

7,000,000

6,939,800

Revenue,

Senior

Lien,

2014A,

Refunding,

5%,

1/15/34

......................

50,000,000

55,894,500

San

Jose

Unified

School

District

,

GO

,

2018

E

,

4

%

,

8/01/42

....................

10,600,000

12,111,454

San

Mateo

Foster

City

School

District

,

GO

,

A

,

Zero

Cpn.,

8/01/42

...............

50,000,000

55,032,000

San

Mateo

Union

High

School

District

,

GO,

2011A,

Zero

Cpn.,

9/01/33

.......................................

6,065,000

6,078,100

GO,

2011A,

Zero

Cpn.,

9/01/41

.......................................

20,000,000

22,478,200

Santa

Ana

Unified

School

District

,

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/35

...........................

10,000,000

7,218,700

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/36

...........................

18,865,000

13,164,186

GO,

2009B,

AGMC

Insured,

Zero

Cpn.,

8/01/37

...........................

10,000,000

6,745,200

Santa

Monica-Malibu

Unified

School

District

,

GO

,

A

,

4

%

,

8/01/44

...............

9,360,000

10,817,633

State

of

California

,

GO,

5.9%,

4/01/23

.................................................

900,000

921,033

GO,

5.25%,

3/01/30

................................................

40,000,000

40,145,600

GO,

Pre-Refunded,

6%,

3/01/33

.......................................

1,125,000

1,125,000

GO,

6%,

3/01/33

..................................................

2,905,000

2,917,056

GO,

2002,

NATL

Insured,

5%,

10/01/32

.................................

20,000

20,068

West

Contra

Costa

Unified

School

District

,

GO,

C-1,

Refunding,

AGMC

Insured,

Zero

Cpn.,

8/01/29

....................

10,000,000

8,622,100

GO,

C-1,

Refunding,

AGMC

Insured,

Zero

Cpn.,

8/01/30

....................

20,845,000

17,417,457

GO,

C-1,

Refunding,

AGMC

Insured,

Zero

Cpn.,

8/01/31

....................

20,000,000

16,214,000

GO,

C-1,

Refunding,

AGMC

Insured,

Zero

Cpn.,

8/01/32

....................

10,730,000

8,414,466

643,079,529

Colorado

3.3%

City

&

County

of

Denver

,

Revenue,

2018

A-1,

5%,

8/01/48

......................................

39,690,000

46,581,772

Revenue,

2018A-2,

Zero

Cpn.,

8/01/35

.................................

2,000,000

1,280,380

Revenue,

2018A-2,

Zero

Cpn.,

8/01/36

.................................

2,500,000

1,526,250

Revenue,

2018A-2,

Zero

Cpn.,

8/01/37

.................................

2,455,000

1,429,399

Revenue,

2018A-2,

Zero

Cpn.,

8/01/38

.................................

2,000,000

1,112,320

Airport

System,

Revenue,

1992-C,

NATL

Insured,

ETM,

6.125%,

11/15/25

.......

3,590,000

4,433,255

Airport

System,

Revenue,

1992-C,

NATL

Insured,

6.125%,

11/15/25

............

4,410,000

4,586,532

Airport

System,

Revenue,

2013B,

5.25%,

11/15/33

.........................

16,405,000

18,209,058

Airport

System,

Revenue,

2018

A,

Refunding,

5%,

12/01/38

..................

12,000,000

14,334,360

Airport

System,

Revenue,

2018

A,

Refunding,

5%,

12/01/43

..................

11,000,000

12,919,390

Airport

System,

Revenue,

2018

A,

Refunding,

5%,

12/01/48

..................

10,000,000

11,658,800

Airport

System,

Revenue,

2018

A,

Refunding,

5.25%,

12/01/48

...............

26,000,000

30,885,660

Colorado

Health

Facilities

Authority

,

Adventist

Health

System/Sunbelt

Obligated

Group,

Revenue,

2016A,

Refunding,

5%,

11/15/41

.......................................................

30,505,000

35,412,340

Adventist

Health

System/Sunbelt

Obligated

Group,

Revenue,

2018A,

5%,

11/15/48

12,000,000

14,229,600

Adventist

Health

System/Sunbelt

Obligated

Group,

Revenue,

2019

A,

Refunding,

4%,

11/15/43

.......................................................

30,000,000

34,033,500

Children's

Hospital

Colorado

Obligated

Group,

Revenue,

2016A,

5%,

12/01/41

....

5,000,000

5,752,850

Children's

Hospital

Colorado

Obligated

Group,

Revenue,

2016A,

5%,

12/01/44

....

10,200,000

11,673,594

CommonSpirit

Health

Obligated

Group,

Revenue,

2019

A-2,

Refunding,

5%,

8/01/44

17,700,000

20,944,764

Covenant

Living

Communities

and

Services

Obligated

Group,

Revenue,

2020A,

Refunding,

4%,

12/01/50

...........................................

4,930,000

5,241,132

Evangelical

Lutheran

Good

Samaritan

Obligated

Group,

Revenue,

2015A,

Pre-

Refunded,

5%,

6/01/45

............................................

19,000,000

22,999,120

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Colorado

(continued)

Colorado

Health

Facilities

Authority,

(continued)

Parkview

Medical

Center,

Inc.

Obligated

Group,

Revenue,

2020A,

4%,

9/01/45

....

$

1,000,000

$

1,083,320

Parkview

Medical

Center,

Inc.

Obligated

Group,

Revenue,

2020A,

4%,

9/01/50

....

3,000,000

3,217,890

Sisters

of

Charity

of

Leavenworth

Health

System,

Inc.

Obligated

Group,

Revenue,

2019B,

Refunding,

4%,

1/01/40

......................................

10,000,000

11,435,200

Eagle

River

Water

and

Sanitation

District

,

Revenue

,

2020

A

,

AGMC

Insured

,

4

%

,

12/01/45

........................................................

1,250,000

1,458,875

Park

Creek

Metropolitan

District

,

Revenue,

Senior

Lien

,

2018A

,

5

%

,

12/01/46

......

2,875,000

3,415,902

Public

Authority

for

Colorado

Energy

,

Revenue

,

2008

,

6.5

%

,

11/15/38

............

20,000,000

30,866,000

Regional

Transportation

District

,

Sales

Tax

,

Revenue

,

2012A

,

5

%

,

11/01/32

........

10,000,000

10,790,500

361,511,763

Connecticut

0.2%

Connecticut

State

Health

&

Educational

Facilities

Authority

,

Hartford

HealthCare

Obligated

Group,

Revenue,

2020

A,

4%,

7/01/37

..........

3,000,000

3,423,900

Hartford

HealthCare

Obligated

Group,

Revenue,

2020

A,

4%,

7/01/39

..........

5,750,000

6,519,408

Hartford

HealthCare

Obligated

Group,

Revenue,

2020

A,

4%,

7/01/40

..........

2,250,000

2,543,085

State

of

Connecticut

,

Special

Tax,

2020

A,

4%,

5/01/39

......................................

1,650,000

1,894,150

Special

Tax,

2020

A,

5%,

5/01/40

......................................

2,000,000

2,494,920

16,875,463

Delaware

0.0%

†

County

of

Kent

,

CHF-Dover

LLC,

Revenue,

2018

A,

5%,

7/01/40

...........................

1,100,000

1,067,759

CHF-Dover

LLC,

Revenue,

2018

A,

5%,

7/01/48

...........................

1,485,000

1,422,689

CHF-Dover

LLC,

Revenue,

2018

A,

5%,

7/01/53

...........................

1,100,000

1,042,404

3,532,852

Florida

6.4%

Broward

County

Housing

Finance

Authority

,

Heron

Pointe

Ltd.,

Revenue,

1997

A,

5.65%,

11/01/22

......................

210,000

210,748

Heron

Pointe

Ltd.,

Revenue,

1997

A,

5.7%,

11/01/29

.......................

225,000

225,909

Capital

Projects

Finance

Authority

,

CAPFA

Capital

Corp.

2000F,

Revenue,

2020

A-1,

Refunding,

5%,

10/01/31

......

1,500,000

1,693,725

CAPFA

Capital

Corp.

2000F,

Revenue,

2020

A-1,

Refunding,

5%,

10/01/32

......

1,100,000

1,239,106

Central

Florida

Expressway

Authority

,

Revenue,

Senior

Lien,

2018,

5%,

7/01/48

................................

16,000,000

19,224,480

Revenue,

Senior

Lien,

2019

B,

5%,

7/01/49

..............................

17,000,000

20,781,480

City

of

Atlantic

Beach

,

Naval

Continuing

Care

Retirement

Foundation

Obligated

Group

,

Revenue

,

2018

A

,

5

%

,

11/15/53

.......................................

9,235,000

9,844,418

City

of

Cape

Coral

,

Water

&

Sewer,

Revenue,

2011A,

Pre-Refunded,

AGMC

Insured,

5%,

10/01/42

...

21,510,000

22,447,406

Water

&

Sewer,

Revenue,

2017,

Refunding,

5%,

10/01/39

...................

10,000,000

12,211,100

City

of

Cocoa

,

Water

&

Sewer

,

Revenue

,

2018

B

,

5

%

,

10/01/48

.................

10,325,000

12,675,899

City

of

Deltona

,

Utility

System

,

Revenue

,

2013

,

Refunding

,

AGMC

Insured

,

5.125

%

,

10/01/39

........................................................

5,000,000

5,646,600

City

of

Gainesville

,

Utilities

System,

Revenue,

2017

A,

5%,

10/01/36

..........................

7,150,000

8,830,464

Utilities

System,

Revenue,

2019

A,

5%,

10/01/47

..........................

31,640,000

39,931,262

City

of

Jacksonville

,

Genesis

Health,

Inc.

Obligated

Group

,

Revenue

,

2020

,

Refunding

,

5

%

,

11/01/50

.....................................................

15,000,000

17,468,550

City

of

Miami

Beach

,

GO,

2019,

Refunding,

4%,

5/01/44

.....................................

15,000,000

17,335,050

Revenue,

2015A,

5%,

9/01/40

........................................

11,000,000

12,374,340

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Florida

(continued)

City

of

Pompano

Beach

,

John

Knox

Village

of

Florida,

Inc.

Obligated

Group

,

Revenue

,

2020

,

Refunding

,

4

%

,

9/01/50

........................................

$

3,780,000

$

3,807,670

City

of

South

Miami

Health

Facilities

Authority,

Inc.

,

Baptist

Health

South

Florida

Obligated

Group

,

Revenue

,

2017

,

Refunding

,

5

%

,

8/15/42

...................

15,000,000

17,580,450

City

of

St.

Petersburg

,

Public

Utility

,

Revenue

,

2018

,

Refunding

,

4

%

,

10/01/43

......

15,000,000

17,260,800

City

of

Tampa

,

H

Lee

Moffitt

Cancer

Center

&

Research

Institute

Obligated

Group,

Revenue,

2020

B,

4%,

7/01/45

..................................................

2,000,000

2,229,000

H

Lee

Moffitt

Cancer

Center

&

Research

Institute

Obligated

Group,

Revenue,

2020

B,

5%,

7/01/50

..................................................

3,000,000

3,622,110

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/35

............

755,000

481,879

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/36

............

800,000

487,144

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/37

............

800,000

465,224

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/38

............

1,050,000

582,519

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/39

............

1,000,000

529,080

State

of

Florida

Cigarette

Tax,

Revenue,

2020

A,

Zero

Cpn.,

9/01/49

............

5,150,000

1,730,091

County

of

Broward

,

Port

Facilities

,

Revenue,

Senior

Lien

,

2019

B

,

4

%

,

9/01/49

.....

15,000,000

15,737,850

County

of

Miami-Dade

,

Revenue,

2012B,

Refunding,

5%,

10/01/31

..............................

5,000,000

5,396,850

Revenue,

2012B,

Refunding,

5%,

10/01/32

..............................

4,500,000

4,857,210

Revenue,

2012B,

Refunding,

5%,

10/01/35

..............................

3,250,000

3,502,395

Aviation,

Revenue,

2019A,

5%,

10/01/49

................................

22,500,000

26,394,075

Transit

System,

Revenue,

2015,

Refunding,

5%,

7/01/35

....................

7,000,000

8,193,150

Water

&

Sewer

System,

Revenue,

2013A,

Pre-Refunded,

5%,

10/01/42

.........

20,000,000

21,814,000

Water

&

Sewer

System,

Revenue,

2019

B,

4%,

10/01/44

....................

27,500,000

31,883,500

County

of

Osceola

,

Transportation,

Revenue,

2019

A-1,

Refunding,

5%,

10/01/44

.................

2,000,000

2,332,760

Transportation,

Revenue,

2019

A-1,

Refunding,

5%,

10/01/49

.................

2,500,000

2,897,075

County

of

Pinellas

,

Sewer

,

Revenue

,

2003

,

AGMC

Insured

,

5

%

,

10/01/32

.........

610,000

612,178

County

of

Seminole

,

Water

&

Sewer

,

Revenue

,

2019

,

Refunding

,

4

%

,

10/01/40

.....

8,500,000

9,891,025

Escambia

County

Health

Facilities

Authority

,

Baptist

Health

Care

Corp.

Obligated

Group

,

Revenue

,

2020

A

,

Refunding

,

4

%

,

8/15/45

.........................

18,985,000

20,192,066

Florida

Municipal

Loan

Council

,

Revenue

,

2011D

,

AGMC

Insured

,

5.5

%

,

10/01/41

...

4,750,000

4,953,537

Greater

Orlando

Aviation

Authority

,

Revenue

,

2019

A

,

4

%

,

10/01/49

..............

10,000,000

11,021,300

Hillsborough

County

Aviation

Authority

,

Revenue,

2015-B,

5%,

10/01/44

.......................................

10,000,000

11,208,800

Revenue,

2018

A,

5%,

10/01/48

.......................................

20,000,000

23,260,000

Hillsborough

County

Industrial

Development

Authority

,

Florida

Health

Sciences

Center,

Inc.

,

Revenue

,

2020A

,

4

%

,

8/01/55

....................................

3,500,000

3,728,620

Hillsborough

County

School

Board

,

COP

,

2012A

,

Pre-Refunded

,

5

%

,

7/01/28

......

520,000

561,007

Hollywood

Beach

Community

Development

District

I

,

Special

Assessment

,

2020

,

Refunding

,

4

%

,

10/01/45

............................................

4,000,000

4,421,520

JEA

Electric

System

,

Revenue,

2020

A,

Refunding,

4%,

10/01/35

..............................

5,000,000

5,937,850

Revenue,

2020A-3,

Refunding,

4%,

10/01/38

.............................

9,080,000

10,660,102

Revenue,

2020A-3,

Refunding,

4%,

10/01/39

.............................

9,300,000

10,882,395

Lee

Memorial

Health

System

,

Lee

Memorial

Health

System

Obligated

Group

,

Revenue

,

2019A-1

,

Refunding

,

5

%

,

4/01/44

......................................

4,220,000

5,031,633

Martin

County

Health

Facilities

Authority

,

Martin

Memorial

Medical

Center

Obligated

Group,

Revenue,

2012,

Pre-Refunded,

AGMC

Insured,

5.5%,

11/15/42

......................................

7,600,000

8,009,868

Miami

Beach

Redevelopment

Agency

,

Tax

Allocation

,

2015A

2015B

,

Refunding

,

AGMC

Insured

,

5

%

,

2/01/44

...............................................

12,000,000

13,544,520

Miami-Dade

County

Expressway

Authority

,

Revenue,

2013

A,

Refunding,

5%,

7/01/29

...............................

10,000,000

10,603,900

Revenue,

2013

A,

Refunding,

5%,

7/01/32

...............................

6,375,000

6,728,557

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Florida

(continued)

Miami-Dade

County

Expressway

Authority,

(continued)

Revenue,

A,

5%,

7/01/40

............................................

$

30,265,000

$

30,343,084

North

Sumter

County

Utility

Dependent

District

,

Revenue,

Senior

Lien,

2019,

5%,

10/01/49

...............................

3,635,000

4,375,377

Revenue,

Senior

Lien,

2019,

5%,

10/01/54

...............................

7,000,000

8,392,160

Orange

County

Health

Facilities

Authority

,

Orlando

Health

Obligated

Group,

Revenue,

2016A,

Refunding,

5%,

10/01/39

.....

6,000,000

7,018,140

Orlando

Health

Obligated

Group,

Revenue,

2019

A,

5%,

10/01/47

.............

5,000,000

5,991,750

Presbyterian

Retirement

Communities,

Inc.

Obligated

Group,

Revenue,

2016,

Refunding,

5%,

8/01/47

............................................

14,000,000

15,208,480

Palm

Beach

County

Health

Facilities

Authority

,

ACTS

Retirement-Life

Communities,

Inc.

Obligated

Group

,

Revenue

,

2020B

,

5

%

,

11/15/42

.......................

500,000

584,575

School

Board

of

Miami-Dade

County

(The)

,

COP

,

2013A

,

5

%

,

5/01/31

............

10,000,000

11,055,800

South

Broward

Hospital

District

,

South

Broward

Hospital

District

Obligated

Group

,

Revenue

,

2018

,

5

%

,

5/01/45

.........................................

20,715,000

24,586,633

c

St.

Johns

County

Industrial

Development

Authority

,

Presbyterian

Retirement

Communities,

Inc.

Obligated

Group

,

Revenue

,

2020

A

,

Refunding

,

4

%

,

8/01/55

...

3,750,000

3,967,388

State

of

Florida

,

GO

,

1999

D

,

Refunding

,

6

%

,

6/01/23

........................

17,500,000

20,092,800

Tampa-Hillsborough

County

Expressway

Authority

,

Revenue

,

2017

,

5

%

,

7/01/47

....

10,000,000

11,827,900

Tohopekaliga

Water

Authority

,

Revenue

,

2016

,

Refunding

,

5

%

,

10/01/46

..........

5,000,000

6,067,550

Town

of

Davie

,

Water

&

Sewer

,

Revenue

,

2011

,

Pre-Refunded

,

AGMC

Insured

,

5

%

,

10/01/32

........................................................

8,575,000

8,948,698

693,634,582

Georgia

3.3%

Albany-Dougherty

Payroll

Development

Authority

,

Darton

Boosters,

Inc.

,

Revenue

,

2010

,

AGMC

Insured

,

5.75

%

,

6/15/41

...................................

5,550,000

5,555,106

Atlanta

Development

Authority

(The)

,

Revenue,

2015A-1,

5.25%,

7/01/44

....................................

3,000,000

3,262,200

Tuff

Yamacraw

LLC,

Revenue,

2005

A,

Refunding,

AMBAC

Insured,

5%,

1/01/24

..

6,385,000

7,074,644

Tuff

Yamacraw

LLC,

Revenue,

2005

A,

Refunding,

AMBAC

Insured,

5%,

1/01/25

..

6,955,000

7,928,004

Tuff

Yamacraw

LLC,

Revenue,

2005

A,

Refunding,

AMBAC

Insured,

5%,

1/01/26

..

5,000,000

5,840,400

Tuff

Yamacraw

LLC,

Revenue,

2005

A,

Refunding,

AMBAC

Insured,

5%,

1/01/27

..

5,000,000

5,943,350

Brookhaven

Development

Authority

,

Children's

Healthcare

of

Atlanta

Obligated

Group

,

Revenue

,

2019

A

,

4

%

,

7/01/49

........................................

15,040,000

17,000,915

City

of

Atlanta

,

Airport

Passenger

Facility

Charge,

Revenue,

Sub.

Lien,

2019

D,

4%,

7/01/36

.....

15,800,000

17,932,842

Department

of

Aviation,

Revenue,

2010C,

Refunding,

6%,

1/01/30

.............

15,000,000

15,139,350

Water

&

Wastewater,

Revenue,

2015,

Refunding,

5%,

11/01/40

...............

29,500,000

34,687,280

Water

&

Wastewater,

Revenue,

2018

C,

Refunding,

4%,

11/01/38

..............

13,550,000

15,753,230

Water

&

Wastewater,

Revenue,

2018A,

Refunding,

5%,

11/01/40

..............

4,655,000

5,750,322

Water

&

Wastewater,

Revenue,

2018A,

Refunding,

5%,

11/01/41

..............

4,845,000

5,967,102

Clarke

County

Hospital

Authority

,

Piedmont

Healthcare,

Inc.

Obligated

Group

,

Revenue

,

2016

A

,

Refunding

,

5

%

,

7/01/46

...............................

10,835,000

12,356,667

c

Cobb

County

Kennestone

Hospital

Authority

,

WellStar

Health

System

Obligated

Group,

Revenue,

2020B,

Refunding,

5%,

4/01/37

625,000

763,550

WellStar

Health

System

Obligated

Group,

Revenue,

2020B,

Refunding,

4%,

4/01/39

325,000

359,730

WellStar

Health

System

Obligated

Group,

Revenue,

2020B,

Refunding,

4%,

4/01/41

475,000

521,892

Coweta

County

Development

Authority

,

Piedmont

Healthcare,

Inc.

Obligated

Group

,

Revenue

,

2019A

,

Refunding

,

5

%

,

7/01/44

...............................

10,000,000

12,087,300

Development

Authority

for

Fulton

County

,

Piedmont

Healthcare,

Inc.

Obligated

Group,

Revenue,

2016

A,

Refunding,

5%,

7/01/46

........................................................

11,005,000

12,550,542

WellStar

Health

System

Obligated

Group,

Revenue,

2017,

5%,

4/01/47

.........

5,000,000

5,788,650

WellStar

Health

System

Obligated

Group,

Revenue,

2020

A,

4%,

4/01/50

........

3,500,000

3,879,085

Development

Authority

of

Burke

County

(The)

,

Oglethorpe

Power

Corp.,

Revenue,

2017,

Refunding,

4.125%,

11/01/45

.........

18,500,000

20,404,390

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Georgia

(continued)

Development

Authority

of

Burke

County

(The),

(continued)

Oglethorpe

Power

Corp.,

Revenue,

2017C,

Refunding,

4.125%,

11/01/45

........

$

2,500,000

$

2,757,350

Fayette

County

Hospital

Authority

,

Piedmont

Healthcare,

Inc.

Obligated

Group

,

Revenue

,

2014A

,

Refunding

,

5

%

,

7/01/39

...............................

11,420,000

12,659,070

Fulton

County

Residential

Care

Facilities

for

the

Elderly

Authority

,

Lenbrook

Square

Foundation

Obligated

Group

,

Revenue

,

2016

,

Refunding

,

5

%

,

7/01/42

..........

5,000,000

5,243,050

Gainesville

&

Hall

County

Hospital

Authority

,

Northeast

Georgia

Health

System

Obligated

Group

,

Revenue

,

2017A

,

Refunding

,

5

%

,

2/15/45

..................

13,040,000

15,099,016

Georgia

Housing

&

Finance

Authority

,

Revenue

,

2020

A

,

Refunding

,

3.05

%

,

12/01/40

2,250,000

2,378,093

Glynn-Brunswick

Memorial

Hospital

Authority

,

Southeast

Georgia

Health

System

Obligated

Group

,

Revenue

,

2017

,

5

%

,

8/01/47

............................

2,250,000

2,547,630

Main

Street

Natural

Gas,

Inc.

,

Revenue,

2007A,

5.5%,

9/15/28

.......................................

5,000,000

6,403,500

Revenue,

2019

A,

5%,

5/15/49

........................................

11,500,000

15,994,315

Municipal

Electric

Authority

of

Georgia

,

Revenue,

2019

A,

Refunding,

5%,

1/01/44

...............................

4,580,000

5,497,099

Revenue,

2019

B,

5%,

1/01/59

........................................

4,000,000

4,669,640

Private

Colleges

&

Universities

Authority

,

Emory

University,

Revenue,

2011A,

Pre-Refunded,

5%,

9/01/41

...............

10,000,000

10,396,800

Emory

University,

Revenue,

2013A,

5%,

10/01/43

.........................

10,000,000

11,049,100

Emory

University,

Revenue,

2019B,

Refunding,

5%,

9/01/48

..................

6,005,000

7,468,899

Emory

University,

Revenue,

2020

B,

Refunding,

4%,

9/01/39

.................

2,100,000

2,488,794

Emory

University,

Revenue,

2020

B,

Refunding,

4%,

9/01/40

.................

2,000,000

2,362,380

Emory

University,

Revenue,

2020

B,

Refunding,

4%,

9/01/41

.................

2,250,000

2,647,125

Savannah

Economic

Development

Authority

,

SSU

Community

Development

I

LLC

,

Revenue

,

2010

,

AGMC

Insured

,

5.75

%

,

6/15/41

...........................

10,000,000

10,032,600

Savannah

Hospital

Authority

,

St.

Joseph's/Candler

Health

System

Obligated

Group

,

Revenue

,

2019A

,

Refunding

,

4

%

,

7/01/43

...............................

15,000,000

16,353,150

State

of

Georgia

,

GO

,

2017

A

,

4

%

,

2/01/36

................................

10,000,000

11,639,900

364,234,062

Hawaii

1.1%

City

&

County

Honolulu

,

Wastewater

System,

Revenue,

Senior

Lien,

2011

A&B,

Pre-Refunded,

5%,

7/01/38

10,000,000

10,318,300

Wastewater

System,

Revenue,

Senior

Lien,

2018

A,

5%,

7/01/47

..............

25,000,000

30,259,000

State

of

Hawaii

,

Airports

System,

Revenue,

2018

A,

5%,

7/01/43

...........................

15,000,000

17,430,750

Airports

System,

Revenue,

2018

A,

5%,

7/01/48

...........................

15,450,000

17,819,721

Airports

System,

Revenue,

2020

A,

4%,

7/01/45

...........................

8,125,000

8,767,444

Airports

System,

Revenue,

2020D,

Refunding,

4%,

7/01/39

..................

10,000,000

11,237,700

State

of

Hawaii

Department

of

Budget

&

Finance

,

Hawaiian

Electric

Co.,

Inc.,

Revenue,

2019,

Refunding,

3.2%,

7/01/39

..........

10,000,000

10,154,000

Hawaiian

Electric

Co.,

Inc.,

Revenue,

2019,

3.5%,

10/01/49

..................

17,035,000

17,194,618

123,181,533

Idaho

0.2%

Idaho

Health

Facilities

Authority

,

St.

Luke's

Health

System

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

3/01/36

........................................................

4,200,000

5,106,906

St.

Luke's

Health

System

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

3/01/37

........................................................

3,500,000

4,238,325

Trinity

Health

Corp.

Obligated

Group,

Revenue,

2019

ID,

4%,

12/01/43

.........

6,000,000

6,737,700

16,082,931

Illinois

4.5%

Chicago

Midway

International

Airport

,

Revenue,

1998

C,

Refunding,

AGMC,

NATL

RE

Insured,

5.5%,

1/01/24

.........

12,950,000

13,970,719

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Illinois

(continued)

Chicago

Midway

International

Airport,

(continued)

Revenue,

Second

Lien,

2016B,

Refunding,

5%,

1/01/46

.....................

$

18,420,000

$

20,787,891

Chicago

O'Hare

International

Airport

,

Revenue,

Senior

Lien,

2016D,

5.25%,

1/01/42

............................

10,000,000

11,600,400

Revenue,

Senior

Lien,

2016D,

5%,

1/01/47

..............................

18,000,000

20,463,120

Revenue,

Senior

Lien,

2020

C,

Refunding,

4%,

1/01/37

.....................

4,000,000

4,492,080

Revenue,

Senior

Lien,

2020

C,

Refunding,

4%,

1/01/38

.....................

3,000,000

3,357,600

Revenue,

Senior

Lien,

2020

E,

Refunding,

4%,

1/01/37

.....................

6,015,000

6,754,965

Revenue,

Third

Lien,

2011A,

Pre-Refunded,

5.75%,

1/01/39

..................

4,160,000

4,197,107

Revenue,

Third

Lien,

2011A,

Refunding,

5.75%,

1/01/39

.....................

840,000

847,493

Chicago

Park

District

,

GO,

2020

D,

BAM

Insured,

4%,

1/01/37

.................................

1,000,000

1,093,840

GO,

2020

D,

BAM

Insured,

4%,

1/01/38

.................................

1,000,000

1,090,130

GO,

2020

D,

BAM

Insured,

4%,

1/01/39

.................................

1,000,000

1,086,580

GO,

2020

F-2,

Refunding,

4%,

1/01/36

..................................

1,250,000

1,358,212

GO,

2020

F-2,

Refunding,

5%,

1/01/37

..................................

2,000,000

2,349,840

GO,

2020

F-2,

Refunding,

5%,

1/01/39

..................................

1,625,000

1,899,771

GO,

2020

F-2,

Refunding,

5%,

1/01/40

..................................

1,625,000

1,893,938

GO,

2020C,

BAM

Insured,

4%,

1/01/41

.................................

1,400,000

1,511,552

GO,

2020C,

BAM

Insured,

4%,

1/01/42

.................................

4,300,000

4,625,553

Chicago

Transit

Authority

Sales

Tax

Receipts

Fund

,

Revenue,

2011,

Pre-Refunded,

5.25%,

12/01/40

..........................

10,000,000

10,540,000

Revenue,

Second

Lien,

2020

A,

Refunding,

4%,

12/01/50

....................

9,000,000

9,682,020

City

of

Chicago

,

GO

,

1998

,

NATL

Insured

,

ETM,

5.75

%

,

1/01/23

................

8,955,000

9,661,460

Illinois

Finance

Authority

,

Carle

Foundation

Obligated

Group

(The),

Revenue,

2016

A,

Refunding,

5%,

2/15/45

20,000,000

23,258,200

CHF-Dekalb

II

LLC,

Revenue,

2011,

6.875%,

10/01/43

......................

15,000,000

15,302,850

CHF-Normal

LLC,

Revenue,

2011,

Pre-Refunded,

7%,

4/01/43

................

7,500,000

7,703,400

Mercy

Health

Corp.

Obligated

Group,

Revenue,

2016,

Refunding,

5%,

12/01/46

...

30,000,000

33,630,300

OSF

Healthcare

System

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

5/15/50

7,630,000

8,404,216

Macon

County

School

District

No.

61

Decatur

,

GO,

2020

C,

Refunding,

AGMC

Insured,

4%,

1/01/40

.......................

3,700,000

4,077,918

GO,

2020

C,

Refunding,

AGMC

Insured,

4%,

1/01/45

.......................

3,125,000

3,407,219

Metropolitan

Pier

&

Exposition

Authority

,

Revenue,

1996,

ETM,

7%,

7/01/26

.....................................

8,780,000

10,589,909

Revenue,

2002

A,

NATL

Insured,

Zero

Cpn.,

12/15/32

......................

3,490,000

2,327,621

Revenue,

2002

A,

NATL

Insured,

Zero

Cpn.,

12/15/33

......................

24,000,000

15,318,720

Revenue,

2002

A,

NATL

Insured,

Zero

Cpn.,

12/15/34

......................

1,655,000

1,013,009

Revenue,

2002

A,

NATL

Insured,

Zero

Cpn.,

6/15/38

.......................

2,325,000

1,224,484

Revenue,

2002

A,

AGMC,

NATL

Insured,

Zero

Cpn.,

12/15/40

................

6,000,000

2,981,760

Revenue,

NATL

RE

Insured,

ETM,

5.65%,

6/15/22

.........................

5,500,000

5,961,065

Revenue,

2002

B,

NATL

RE

Insured,

5.65%,

6/15/22

.......................

24,500,000

25,746,560

Railsplitter

Tobacco

Settlement

Authority

,

Revenue

,

2010

,

Pre-Refunded

,

6

%

,

6/01/28

14,530,000

15,013,704

Regional

Transportation

Authority

,

Revenue

,

1990A

,

AMBAC

Insured

,

7.2

%

,

11/01/20

170,000

170,000

Southwestern

Illinois

Development

Authority

,

Madison

County

Community

Unit

School

District

No.

7

Edwardsville,

Revenue,

2007,

AGMC

Insured,

Zero

Cpn.,

12/01/24

..................................

3,850,000

3,661,851

Madison

County

Community

Unit

School

District

No.

7

Edwardsville,

Revenue,

2007,

AGMC

Insured,

Zero

Cpn.,

12/01/26

..................................

7,700,000

7,016,240

St.

Clair

County

School

District

No.

189

East

St.

Louis

,

GO

,

2008

,

Refunding

,

AMBAC

Insured

,

5.125

%

,

1/01/28

............................................

7,135,000

7,144,061

State

of

Illinois

,

GO,

2010,

Refunding,

AGMC

Insured,

5%,

1/01/23

.........................

10,000,000

10,153,100

GO,

2012,

AGMC

Insured,

5%,

3/01/27

.................................

11,500,000

11,924,925

GO,

2016,

Refunding,

5%,

2/01/26

.....................................

4,215,000

4,590,515

GO,

2016,

5%,

11/01/35

.............................................

1,000,000

1,041,920

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Illinois

(continued)

State

of

Illinois,

(continued)

GO,

2017

A,

4.25%,

12/01/40

.........................................

$

3,150,000

$

3,083,220

GO,

2017C,

5%,

11/01/29

...........................................

17,470,000

18,691,677

GO,

2017D,

3.25%,

11/01/26

.........................................

1,750,000

1,726,865

GO,

2017D,

5%,

11/01/26

...........................................

8,800,000

9,509,984

GO,

2017D,

5%,

11/01/27

...........................................

10,970,000

11,905,302

GO,

2017D,

5%,

11/01/28

...........................................

5,155,000

5,554,306

GO,

2019

B,

4%,

11/01/34

...........................................

2,600,000

2,556,190

GO,

2019

C,

4%,

11/01/40

...........................................

2,500,000

2,377,425

GO,

2020,

5.5%,

5/01/30

............................................

3,700,000

4,231,653

GO,

2020,

5.5%,

5/01/39

............................................

16,915,000

18,665,364

GO,

2020,

5.75%,

5/01/45

...........................................

7,965,000

8,826,574

GO,

2020

C,

4%,

10/01/37

...........................................

2,980,000

2,901,209

GO,

2020

C,

4%,

10/01/38

...........................................

9,750,000

9,458,085

GO,

2020

C,

4%,

10/01/39

...........................................

4,585,000

4,419,573

University

of

Illinois

,

Auxiliary

Facilities

System,

Revenue,

2011A,

5.125%,

4/01/36

................

2,950,000

2,987,848

Auxiliary

Facilities

System,

Revenue,

2011A,

5.25%,

4/01/41

.................

5,000,000

5,063,550

Upper

Illinois

River

Valley

Development

Authority

,

2018

IAVF

Timber

Oaks

&

Prairie

View

Obligated

Group,

Revenue,

2018A-1,

5%,

12/01/43

.......................................................

8,550,000

7,498,436

2018

IAVF

Timber

Oaks

&

Prairie

View

Obligated

Group,

Revenue,

2018A-1,

5%,

12/01/54

.......................................................

11,000,000

9,215,250

Village

of

Bolingbrook

,

GO

,

2013A

,

Pre-Refunded

,

Zero

Cpn.,

1/01/36

............

19,000,000

9,765,620

493,365,949

Indiana

3.1%

City

of

Indianapolis

,

Department

of

Public

Utilities

Water

System

,

Revenue,

First

Lien

,

2016

B

,

Refunding

,

5

%

,

10/01/37

......................................

15,000,000

18,307,500

Hammond

Multi-School

Building

Corp.

,

Hammond

School

City

,

Revenue

,

2018

,

5

%

,

7/15/38

.........................................................

3,000,000

3,572,580

Indiana

Finance

Authority

,

BHI

Senior

Living

Obligated

Group,

Revenue,

2016

A,

5.25%,

11/15/46

.........

11,955,000

12,795,198

BHI

Senior

Living

Obligated

Group,

Revenue,

2018

A,

5%,

11/15/53

............

15,000,000

15,968,700

Citizens

Wastewater

of

Westfield

LLC,

Revenue,

2019

A,

Refunding,

5%,

10/01/48

16,665,000

20,491,784

CWA

Authority,

Inc.,

Revenue,

First

Lien,

2011A,

5.25%,

10/01/38

.............

12,000,000

12,508,440

CWA

Authority,

Inc.,

Revenue,

First

Lien,

2012A,

5%,

10/01/37

................

5,000,000

5,370,400

CWA

Authority,

Inc.,

Revenue,

First

Lien,

2012A,

4%,

10/01/42

................

24,690,000

25,731,424

CWA

Authority,

Inc.,

Revenue,

First

Lien,

2014A,

5%,

10/01/39

................

30,000,000

34,359,000

Deaconess

Health

System

Obligated

Group,

Revenue,

2015A,

Refunding,

5%,

3/01/39

........................................................

5,000,000

5,596,150

Marian

University,

Inc.,

Revenue,

2011,

Pre-Refunded,

6.375%,

9/15/41

.........

12,500,000

13,154,500

Marion

County

Capital

Improvement

Board,

Revenue,

2015A,

Refunding,

5.25%,

2/01/37

........................................................

10,000,000

11,413,500

WVB

East

End

Partners

LLC,

Revenue,

2013A,

5.25%,

1/01/51

...............

20,000,000

21,279,600

Indiana

Municipal

Power

Agency

,

Revenue,

2016

A,

Refunding,

4%,

1/01/42

...............................

5,860,000

6,445,883

Revenue,

2016

A,

Refunding,

5%,

1/01/42

...............................

21,290,000

24,982,963

Indiana

University

,

Revenue

,

2020A

,

Refunding

,

4

%

,

6/01/45

..................

8,525,000

10,023,780

Indianapolis

Local

Public

Improvement

Bond

Bank

,

Revenue,

2017,

Refunding,

5%,

1/01/40

.................................

23,225,000

28,237,187

Revenue,

2019A,

4%,

2/01/44

........................................

6,050,000

7,101,732

Revenue,

2019A,

5%,

2/01/49

........................................

41,970,000

51,377,995

Northern

Indiana

Commuter

Transportation

District

,

Revenue

,

2016

,

5

%

,

7/01/41

...

6,000,000

6,936,780

335,655,096

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Iowa

0.3%

Iowa

Finance

Authority

,

Iowa

Health

System

Obligated

Group,

Revenue,

2018B,

Refunding,

5%,

2/15/48

..

$

7,500,000

$

8,963,700

State

Revolving

Fund,

Revenue,

2017,

Refunding,

5%,

8/01/42

...............

16,000,000

19,637,600

28,601,300

Kansas

0.7%

Butler

County

Unified

School

District

No.

490

El

Dorado

,

GO

,

2016

B

,

BAM

Insured

,

4

%

,

9/01/43

......................................................

10,000,000

11,292,500

University

of

Kansas

Hospital

Authority

,

University

of

Kansas

Health

System

Obligated

Group

,

Revenue

,

2017

A

,

Refunding

,

5

%

,

3/01/47

.........................

23,115,000

27,029,525

Wyandotte

County-Kansas

City

Unified

Government

,

Utility

System,

Revenue,

2014A,

Refunding,

5%,

9/01/44

....................

3,000,000

3,365,130

Utility

System,

Revenue,

2016-A,

5%,

9/01/45

............................

10,000,000

11,481,200

Utility

System,

Revenue,

2016-C,

Refunding,

5%,

9/01/41

...................

5,000,000

5,856,700

Utility

System,

Revenue,

2016-C,

Refunding,

5%,

9/01/46

...................

16,565,000

19,237,597

78,262,652

Kentucky

0.2%

Kentucky

Municipal

Power

Agency

,

Revenue,

2015A,

Refunding,

NATL

Insured,

5%,

9/01/42

....................

10,000,000

11,090,400

Revenue,

2016

A,

Refunding,

NATL

Insured,

5%,

9/01/35

....................

7,750,000

8,941,020

20,031,420

Louisiana

3.1%

City

of

Shreveport

,

Water

&

Sewer,

Revenue,

2016

B,

5%,

12/01/41

..........................

10,000,000

11,719,300

Water

&

Sewer,

Revenue,

Junior

Lien,

2019

B,

AGMC

Insured,

4%,

12/01/44

.....

6,535,000

7,405,919

East

Baton

Rouge

Sewerage

Commission

,

Revenue

,

2019

A

,

Refunding

,

4

%

,

2/01/45

20,000,000

23,049,000

Jefferson

Sales

Tax

District

,

Revenue

,

2019

B

,

AGMC

Insured

,

4

%

,

12/01/42

.......

20,000,000

22,927,200

Lafayette

Consolidated

Government

,

Revenue

,

2015

,

Refunding

,

AGMC

Insured

,

5

%

,

11/01/30

........................................................

5,000,000

5,875,450

Louisiana

Local

Government

Environmental

Facilities

&

Community

Development

Authority

,

East

Baton

Rouge

Sewerage

Commission,

Revenue,

Sub.

Lien,

2014-A,

Pre-

Refunded,

5%,

2/01/44

............................................

5,820,000

6,696,375

Louisiana

Community

&

Technical

College

System,

Revenue,

2014,

5%,

10/01/39

.

10,000,000

11,088,500

University

Facilities,

Inc.,

Revenue,

2010A,

AGMC

Insured,

5%,

10/01/40

........

8,545,000

8,570,379

Louisiana

Public

Facilities

Authority

,

Franciscan

Missionaries

of

Our

Lady

Health

System

Obligated

Group,

Revenue,

2017

A,

5%,

7/01/47

..............................................

35,000,000

40,384,400

Louisiana

Children's

Medical

Center

Obligated

Group,

Revenue,

2020

A,

4%,

6/01/50

5,990,000

6,695,921

Louisiana

State

University

&

Agricultural

&

Mechanical

College

Auxiliary,

Revenue,

2016

A,

5%,

7/01/51

..............................................

15,000,000

16,575,300

Louisiana

State

University

&

Agricultural

&

Mechanical

College

Auxiliary,

Revenue,

2016

A,

5%,

7/01/56

..............................................

11,295,000

12,450,140

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2002B,

ETM,

5.75%,

5/15/23

10,000,000

11,344,400

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2011,

Pre-Refunded,

6.75%,

5/15/41

........................................................

15,500,000

16,035,835

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2015,

Refunding,

5%,

5/15/47

7,500,000

8,384,850

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2017,

Refunding,

5%,

5/15/42

20,000,000

23,376,000

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2020

A,

Refunding,

AGMC

Insured,

3%,

5/15/47

..............................................

9,925,000

9,934,826

Ochsner

Clinic

Foundation

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

5/15/49

........................................................

10,000,000

10,913,100

a

Provident

Group

-

HSC

Properties,

Inc.,

Revenue,

144A,

2020

A-1,

5.375%,

1/01/40

2,500,000

2,639,525

a

Provident

Group

-

HSC

Properties,

Inc.,

Revenue,

144A,

2020

A-1,

5.5%,

1/01/50

.

14,000,000

14,750,400

Tulane

University,

Revenue,

2020

A,

Refunding,

4%,

4/01/40

.................

3,750,000

4,253,775

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Louisiana

(continued)

Louisiana

Public

Facilities

Authority,

(continued)

Tulane

University,

Revenue,

2020

A,

Refunding,

5%,

4/01/45

.................

$

3,500,000

$

4,242,420

Tulane

University,

Revenue,

2020

A,

Refunding,

4%,

4/01/50

.................

4,000,000

4,440,280

Louisiana

Stadium

&

Exposition

District

,

Revenue

,

2020

,

5

%

,

7/03/23

............

5,700,000

6,173,043

New

Orleans

Aviation

Board

,

Louis

Armstrong

New

Orleans

International

Airport

,

Revenue

,

2017B

,

5

%

,

1/01/48

........................................

4,000,000

4,466,640

Parish

of

East

Baton

Rouge

Capital

Improvements

District

,

Revenue

,

2019

,

4

%

,

8/01/44

.........................................................

6,000,000

7,048,500

b

Parish

of

St.

John

the

Baptist

,

Marathon

Oil

Corp.

,

Revenue

,

2017B-2

,

Refunding

,

Mandatory

Put

,

2.375

%

,

7/01/26

......................................

7,500,000

7,585,425

Port

New

Orleans

Board

of

Commissioners

,

Revenue,

2020

E,

5%,

4/01/44

........................................

8,110,000

9,610,107

Revenue,

2020

E,

5%,

4/01/47

........................................

10,000,000

11,812,300

Terrebonne

Levee

&

Conservation

District

,

Revenue,

2020

B,

Refunding,

4%,

6/01/40

...............................

5,065,000

5,720,664

Revenue,

2020

B,

Refunding,

4%,

6/01/41

...............................

5,165,000

5,816,927

341,986,901

Maine

0.5%

Maine

Health

&

Higher

Educational

Facilities

Authority

,

MaineGeneral

Health

Obligated

Group,

Revenue,

2011,

6.75%,

7/01/36

.........

4,250,000

4,345,328

MaineGeneral

Health

Obligated

Group,

Revenue,

2011,

7%,

7/01/41

...........

10,000,000

10,232,500

MaineHealth

Obligated

Group,

Revenue,

2018A,

5%,

7/01/43

.................

3,000,000

3,570,870

MaineHealth

Obligated

Group,

Revenue,

2020A,

4%,

7/01/50

.................

14,215,000

15,850,009

Maine

Turnpike

Authority

,

Revenue

,

2018

,

5

%

,

7/01/47

.......................

15,500,000

18,812,195

52,810,902

Maryland

1.0%

City

of

Baltimore

,

Wastewater

Utility

Fund,

Revenue,

2013C,

5%,

7/01/38

.....................

5,000,000

5,575,200

Wastewater

Utility

Fund,

Revenue,

2013C,

5%,

7/01/43

.....................

10,000,000

11,083,500

Wastewater

Utility

Fund,

Revenue,

2014C,

5%,

7/01/39

.....................

10,000,000

11,486,600

Wastewater

Utility

Fund,

Revenue,

2014C,

5%,

7/01/44

.....................

10,000,000

11,400,100

Water

Utility

Fund,

Revenue,

2014A,

5%,

7/01/39

..........................

9,430,000

10,708,802

Water

Utility

Fund,

Revenue,

2014A,

5%,

7/01/44

..........................

5,500,000

6,198,885

Maryland

Community

Development

Administration

,

Residential

,

Revenue

,

2018

A

,

Refunding

,

3.85

%

,

9/01/33

...........................................

5,150,000

5,755,949

Maryland

Health

&

Higher

Educational

Facilities

Authority

,

Adventist

Healthcare

Obligated

Group,

Revenue,

2016

A,

5.5%,

1/01/46

.........

12,500,000

14,035,625

Frederick

Health,

Inc.

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

7/01/45

..

1,945,000

2,136,369

LifeBridge

Health

Obligated

Group,

Revenue,

2017,

Refunding,

4%,

7/01/42

.....

3,000,000

3,294,600

MedStar

Health

Obligated

Group,

Revenue,

2017

A,

5%,

5/15/42

..............

7,500,000

8,800,875

University

of

Maryland

Medical

System

Obligated

Group,

Revenue,

1991

B,

NATL

Insured,

ETM,

7%,

7/01/22

.........................................

90,000

98,392

Maryland

State

Transportation

Authority

,

Revenue

,

2020

,

4

%

,

7/01/45

............

13,205,000

15,352,397

105,927,294

Massachusetts

3.3%

Commonwealth

of

Massachusetts

,

GO,

2016G,

4%,

9/01/42

............................................

20,000,000

22,538,800

GO,

2017B,

5%,

4/01/47

............................................

12,335,000

14,825,437

GO,

2018A,

5%,

1/01/41

............................................

15,000,000

18,393,600

GO,

2018A,

5%,

1/01/46

............................................

10,000,000

12,117,800

GO,

2019

A,

5.25%,

1/01/44

..........................................

10,000,000

12,637,700

Transportation

Fund,

Revenue,

2012A,

4%,

6/01/35

........................

10,000,000

10,153,500

Transportation

Fund,

Revenue,

2017A,

5%,

6/01/47

........................

25,055,000

30,164,967

Transportation

Fund,

Revenue,

2018

A,

5%,

6/01/48

.......................

15,000,000

18,334,650

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Massachusetts

(continued)

Massachusetts

Bay

Transportation

Authority

,

Revenue

,

2005

A

,

5

%

,

7/01/28

.......

$

10,000,000

$

13,114,200

Massachusetts

Clean

Water

Trust

(The)

,

Revenue,

1999A,

5.75%,

8/01/29

......................................

450,000

451,791

Revenue,

2002A,

5%,

8/01/32

........................................

225,000

225,722

Massachusetts

Development

Finance

Agency

,

Beth

Israel

Lahey

Health

Obligated

Group,

Revenue,

2018

J-2,

5%,

7/01/53

......

5,000,000

5,770,650

Dana-Farber

Cancer

Institute

Obligated

Group,

Revenue,

2016N,

5%,

12/01/41

...

10,135,000

11,757,918

Partners

Healthcare

System,

Inc.,

Revenue,

2016Q,

Refunding,

5%,

7/01/47

.....

15,000,000

17,414,550

Partners

Healthcare

System,

Inc.,

Revenue,

2017

S-1,

Refunding,

4%,

7/01/41

...

15,415,000

17,316,286

Wellesley

College,

Revenue,

2012,

5%,

7/01/42

...........................

10,000,000

10,516,800

Wellforce

Obligated

Group,

Revenue,

2020

C,

Refunding,

AGMC

Insured,

4%,

10/01/45

.......................................................

1,250,000

1,407,100

Worcester

Polytechnic

Institute,

Revenue,

2019,

5%,

9/01/59

.................

10,000,000

11,901,500

Massachusetts

Educational

Financing

Authority

,

Revenue,

2009

I,

6%,

1/01/28

........................................

2,340,000

2,373,509

Revenue,

2013K,

5.25%,

7/01/29

......................................

4,570,000

4,791,965

Massachusetts

Health

&

Educational

Facilities

Authority

,

Beth

Israel

Lahey

Health

Obligated

Group

,

Revenue

,

1998-A

,

Pre-Refunded

,

NATL

Insured

,

5

%

,

7/01/25

...

750,000

772,342

Massachusetts

Housing

Finance

Agency

,

Revenue

,

2020

A-1

,

FHA

Insured

,

3

%

,

12/01/45

........................................................

4,000,000

4,104,160

Massachusetts

Port

Authority

,

Revenue,

2019

C,

5%,

7/01/44

........................................

15,000,000

18,065,700

Revenue,

2019

C,

5%,

7/01/49

........................................

10,000,000

11,962,600

Bosfuel

Corp.,

Revenue,

2019

A,

Refunding,

5%,

7/01/49

....................

7,500,000

8,705,400

Massachusetts

School

Building

Authority

,

Revenue,

2018

A,

4%,

2/15/43

........................................

10,750,000

12,186,523

Revenue,

2019A,

5%,

2/15/49

........................................

25,000,000

29,465,000

Revenue,

2020

A,

4%,

8/15/45

........................................

12,000,000

14,143,200

University

of

Massachusetts

Building

Authority

,

Revenue,

Senior

Lien,

Pre-Refunded,

5%,

11/01/39

........................

20,000,000

23,226,969

358,840,339

Michigan

2.8%

City

of

Detroit

,

Great

Lakes

Water

Authority

Sewage

Disposal

System,

Revenue,

Second

Lien,

2006B,

NATL

Insured,

5%,

7/01/36

...................................

10,000

10,033

Great

Lakes

Water

Authority

Sewage

Disposal

System,

Revenue,

Senior

Lien,

2012A,

Pre-Refunded,

AGMC

Insured,

5%,

7/01/39

.......................

10,000,000

10,788,600

Great

Lakes

Water

Authority

Sewage

Disposal

System,

Revenue,

Senior

Lien,

2012A,

Pre-Refunded,

5.25%,

7/01/39

................................

12,000,000

12,996,000

Great

Lakes

Water

Authority

Water

Supply

System,

Revenue,

Senior

Lien,

2003-A,

NATL

Insured,

5%,

7/01/34

.........................................

10,000

10,033

Detroit

City

School

District

,

GO,

2012A,

Refunding,

5%,

5/01/30

....................................

1,245,000

1,326,983

GO,

2012A,

Refunding,

5%,

5/01/33

....................................

1,500,000

1,596,915

Michigan

Finance

Authority

,

Beaumont

Health

Obligated

Group,

Revenue,

2016A,

5%,

11/01/44

............

20,925,000

23,736,693

Bronson

Healthcare

Group

Obligated

Group,

Revenue,

2019

A,

Refunding,

5%,

5/15/54

........................................................

30,000,000

34,147,500

Henry

Ford

Health

System

Obligated

Group,

Revenue,

2019A,

5%,

11/15/48

.....

25,920,000

31,298,659

McLaren

Health

Care

Corp.

Obligated

Group,

Revenue,

2019

A,

4%,

2/15/44

.....

20,000,000

22,435,800

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/36

...

1,000,000

1,151,150

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/37

...

2,000,000

2,290,900

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/38

...

1,500,000

1,711,950

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/39

...

1,500,000

1,705,995

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/40

...

1,000,000

1,132,540

c

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

A,

1,

Refunding,

4%,

6/01/49

...

4,000,000

4,352,840

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Michigan

(continued)

Michigan

Finance

Authority,

(continued)

Tobacco

Settlement,

Revenue,

Senior

Lien,

2020

B1,

2,

Refunding,

5%,

6/01/49

..

$

3,000,000

$

3,490,050

Trinity

Health

Corp.

Obligated

Group,

Revenue,

Pre-Refunded,

5%,

12/01/39

.....

29,750,000

31,276,613

Michigan

State

Building

Authority

,

Revenue,

2011

I-A,

Pre-Refunded,

5.375%,

10/15/36

.......................

6,730,000

7,059,703

Revenue,

2013

1-A,

Refunding,

5.25%,

10/15/44

..........................

20,655,000

23,261,661

Michigan

State

Hospital

Finance

Authority

,

Ascension

Health

Credit

Group,

Revenue,

2010F-7,

Refunding,

5%,

11/15/47

.....

10,000,000

11,768,500

Trinity

Health

Corp.

Obligated

Group,

Revenue,

Pre-Refunded,

5%,

12/01/34

.....

10,000,000

10,733,239

Michigan

State

Housing

Development

Authority

,

Revenue

,

2019

A-1

,

3.25

%

,

10/01/44

3,450,000

3,640,992

Michigan

Strategic

Fund

,

DTE

Electric

Co.,

Revenue,

BB,

Refunding,

AMBAC

Insured,

7%,

5/01/21

.......

250,000

258,192

State

of

Michigan

Department

of

Transportation,

Revenue,

2018,

5%,

12/31/43

...

10,000,000

11,426,200

United

Methodist

Retirement

Communities,

Inc.

Obligated

Group,

Revenue,

2019,

Refunding,

5%,

11/15/49

...........................................

7,000,000

7,515,270

Pontiac

School

District

,

GO,

2020,

4%,

5/01/45

.............................................

7,940,000

8,988,795

GO,

2020,

4%,

5/01/50

.............................................

8,665,000

9,749,251

State

of

Michigan

,

Trunk

Line

,

Revenue

,

2020

B

,

4

%

,

11/15/45

.................

25,000,000

29,427,250

309,288,307

Minnesota

0.1%

City

of

St.

Cloud

,

CentraCare

Health

System

Obligated

Group

,

Revenue

,

2019

,

Refunding

,

5

%

,

5/01/48

.............................................

10,000,000

11,960,300

Mississippi

0.7%

Medical

Center

Educational

Building

Corp.

,

Mississippi

State

Institutions

of

Higher

Learning

,

Revenue

,

2017

,

Refunding

,

5

%

,

6/01/47

.........................

25,000,000

29,384,250

Mississippi

Development

Bank

,

City

of

Jackson

Water

&

Sewer

System

,

Revenue

,

2013

,

AGMC

Insured

,

6.875

%

,

12/01/40

.................................

3,400,000

3,945,734

Mississippi

Hospital

Equipment

&

Facilities

Authority

,

Baptist

Memorial

Health

Care

Obligated

Group,

Revenue,

2016A,

5%,

9/01/36

....

6,350,000

7,282,498

Baptist

Memorial

Health

Care

Obligated

Group,

Revenue,

2016A,

5%,

9/01/46

....

30,000,000

33,751,200

74,363,682

Missouri

1.0%

Bi-State

Development

Agency

of

the

Missouri-Illinois

Metropolitan

District

,

Revenue

,

2020A

,

Refunding

,

4

%

,

10/01/44

......................................

6,000,000

6,913,680

Health

&

Educational

Facilities

Authority

of

the

State

of

Missouri

,

Lutheran

Senior

Services

Obligated

Group,

Revenue,

2016

B,

Refunding,

5%,

2/01/46

........................................................

4,000,000

4,361,040

Mercy

Health,

Revenue,

2014F,

5%,

11/15/45

.............................

25,000,000

27,596,500

SSM

Health

Care

Obligated

Group,

Revenue,

2018A,

5%,

6/01/48

.............

7,500,000

8,847,600

Kansas

City

Industrial

Development

Authority

,

Airport,

Revenue,

2019

B,

5%,

3/01/46

..................................

13,500,000

15,537,690

Airport,

Revenue,

2019

B,

5%,

3/01/54

..................................

23,500,000

26,863,790

Airport,

Revenue,

2020

A,

AGMC

Insured,

5%,

3/01/57

......................

9,000,000

10,440,900

St.

Louis

Municipal

Finance

Corp

,

City

of

St.

Louis

,

Revenue

,

2020

,

AGMC

Insured

,

5

%

,

10/01/49

.....................................................

5,000,000

5,902,300

106,463,500

Montana

0.2%

Montana

Facility

Finance

Authority

,

Benefis

Health

System

Obligated

Group,

Revenue,

2016,

Refunding,

5%,

2/15/41

.

2,650,000

3,094,166

Billings

Clinic

Obligated

Group,

Revenue,

2018A,

Refunding,

5%,

8/15/48

.......

10,000,000

12,219,900

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Montana

(continued)

Montana

Facility

Finance

Authority,

(continued)

Kalispell

Regional

Medical

Center

Obligated

Group,

Revenue,

2018

B,

Refunding,

5%,

7/01/43

....................................................

$

6,440,000

$

7,373,092

22,687,158

Nebraska

0.8%

Douglas

County

Hospital

Authority

No.

2

,

Children's

Hospital

Obligated

Group

,

Revenue

,

2017A

,

5

%

,

11/15/47

.......................................

10,000,000

11,540,500

Hospital

Authority

No.

1

of

Lancaster

County

,

Bryan

Medical

Center

Obligated

Group

,

Revenue

,

1992

,

NATL

Insured

,

ETM,

6.7

%

,

6/01/22

........................

635,000

673,862

Omaha

Public

Power

District

,

Revenue

,

2011

B

,

Pre-Refunded

,

5

%

,

2/01/39

.......

23,305,000

23,580,465

Omaha

Public

Power

District

Nebraska

City

Station

Unit

2

,

Revenue,

2015A,

Refunding,

5.25%,

2/01/42

.............................

10,000,000

11,585,600

Revenue,

2016

A,

Refunding,

5%,

2/01/49

...............................

10,000,000

11,501,000

Public

Power

Generation

Agency

,

Revenue,

2016

A,

Refunding,

5%,

1/01/39

...............................

7,340,000

8,722,195

Revenue,

2016

A,

Refunding,

5%,

1/01/41

...............................

5,140,000

6,094,858

University

of

Nebraska

,

Revenue,

2011,

Pre-Refunded,

5%,

7/01/37

..............................

5,000,000

5,276,400

Revenue,

2011,

Pre-Refunded,

5%,

7/01/42

..............................

7,500,000

7,914,600

86,889,480

Nevada

0.3%

City

of

Carson

City

,

Carson

Tahoe

Regional

Healthcare

Obligated

Group

,

Revenue

,

2017

,

Refunding

,

5

%

,

9/01/47

........................................

2,775,000

3,134,973

City

of

Henderson

,

GO

,

2020A-1

,

4

%

,

6/01/45

..............................

10,000,000

11,691,500

Clark

County

School

District

,

GO,

2020A,

AGMC

Insured,

4%,

6/15/36

................................

750,000

878,370

GO,

2020A,

AGMC

Insured,

4%,

6/15/37

................................

875,000

1,020,740

GO,

2020A,

AGMC

Insured,

4%,

6/15/38

................................

850,000

988,099

GO,

2020A,

AGMC

Insured,

4%,

6/15/39

................................

1,000,000

1,158,550

GO,

2020A,

AGMC

Insured,

4%,

6/15/40

................................

725,000

837,194

Las

Vegas

Convention

&

Visitors

Authority

,

Revenue

,

2018

B

,

5

%

,

7/01/43

........

10,000,000

11,500,800

31,210,226

New

Hampshire

0.2%

New

Hampshire

Health

and

Education

Facilities

Authority

Act

,

Concord

Hospital

Obligated

Group,

Revenue,

2017,

5%,

10/01/47

.............

6,000,000

6,953,400

Elliot

Hospital

Obligated

Group,

Revenue,

2016,

Refunding,

5%,

10/01/38

.......

4,000,000

4,633,040

University

System

of

New

Hampshire,

Revenue,

2015,

Refunding,

5%,

7/01/45

...

10,350,000

11,881,076

23,467,516

New

Jersey

2.1%

New

Jersey

Economic

Development

Authority

,

New

Jersey

Transit

Corp.,

Revenue,

2020

A,

5%,

11/01/44

...................

7,200,000

8,091,288

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2013

NN,

Refunding,

5%,

3/01/28

........................................................

22,000,000

23,446,940

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2018EEE,

5%,

6/15/33

6,135,000

7,028,931

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2018EEE,

5%,

6/15/36

11,850,000

13,453,897

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2018EEE,

4.625%,

6/15/48

........................................................

2,000,000

2,142,160

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2018EEE,

5%,

6/15/48

8,000,000

8,896,800

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2019

LLL,

5%,

6/15/39

3,250,000

3,698,987

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

2019

LLL,

4%,

6/15/44

2,725,000

2,813,808

State

of

New

Jersey

Department

of

the

Treasury,

Revenue,

AAA,

5%,

6/15/41

....

26,000,000

28,733,640

State

of

New

Jersey

Division

of

Property

Management

&

Construction,

Revenue,

2018

C,

5%,

6/15/34

..............................................

4,600,000

5,208,534

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

Jersey

(continued)

New

Jersey

Economic

Development

Authority,

(continued)

State

of

New

Jersey

Division

of

Property

Management

&

Construction,

Revenue,

2018

C,

5%,

6/15/35

..............................................

$

4,800,000

$

5,427,696

New

Jersey

Educational

Facilities

Authority

,

State

of

New

Jersey

,

Revenue

,

2016

B

,

5

%

,

9/01/36

......................................................

14,000,000

15,522,640

New

Jersey

Higher

Education

Student

Assistance

Authority

,

Revenue,

Senior

Lien,

2018

A,

4%,

12/01/33

.............................

2,800,000

2,984,352

Revenue,

Senior

Lien,

2020B,

3.5%,

12/01/39

............................

8,000,000

8,053,600

New

Jersey

Transportation

Trust

Fund

Authority

,

Revenue,

2006C,

NATL

Insured,

Zero

Cpn.,

12/15/31

.......................

6,275,000

4,455,501

Revenue,

2009A,

Zero

Cpn.,

12/15/36

..................................

500,000

279,225

Revenue,

2009A,

Zero

Cpn.,

12/15/39

..................................

750,000

364,860

Revenue,

2010A,

Zero

Cpn.,

12/15/40

..................................

4,750,000

2,202,860

Revenue,

2011B,

5.25%,

6/15/36

......................................

10,000,000

10,235,400

Revenue,

2013AA,

5%,

6/15/44

.......................................

1,000,000

1,059,380

Revenue,

2014

BB-1,

5%,

6/15/31

.....................................

3,000,000

3,482,310

Revenue,

2014

BB-1,

5%,

6/15/34

.....................................

3,250,000

3,718,553

Revenue,

2015AA,

5%,

6/15/45

.......................................

15,000,000

16,120,800

Revenue,

2018

A,

Refunding,

5%,

12/15/32

..............................

18,400,000

21,164,600

Revenue,

2018

A,

Refunding,

5%,

12/15/35

..............................

8,200,000

9,330,288

Revenue,

2019

BB,

4%,

6/15/38

.......................................

2,000,000

2,098,860

Revenue,

2019

BB,

4%,

6/15/44

.......................................

4,000,000

4,118,040

Revenue,

2019

BB,

5%,

6/15/44

.......................................

5,150,000

5,743,228

New

Jersey

Turnpike

Authority

,

Revenue

,

2015

E

,

5

%

,

1/01/45

.................

11,475,000

13,005,880

232,883,058

New

Mexico

0.3%

New

Mexico

Hospital

Equipment

Loan

Council

,

Presbyterian

Healthcare

Services

Obligated

Group,

Revenue,

2015A,

5%,

8/01/44

.

10,000,000

11,293,900

Presbyterian

Healthcare

Services

Obligated

Group,

Revenue,

2017

A,

Refunding,

5%,

8/01/46

....................................................

15,000,000

17,743,800

San

Juan

Regional

Medical

Center,

Inc.,

Revenue,

2020,

Refunding,

4%,

6/01/33

.

1,000,000

1,100,070

San

Juan

Regional

Medical

Center,

Inc.,

Revenue,

2020,

Refunding,

4%,

6/01/35

.

1,000,000

1,091,100

31,228,870

New

York

12.3%

Buffalo

&

Erie

County

Industrial

Land

Development

Corp.

,

D'Youville

College

,

Revenue

,

2020A

,

Refunding

,

4

%

,

11/01/40

......................................

2,200,000

2,277,022

City

of

New

York

,

GO,

2002

D,

5.5%,

6/01/24

..........................................

180,000

180,713

GO,

2003

F,

5.25%,

1/15/23

..........................................

5,000

5,019

GO,

2018

E-1,

5%,

3/01/40

..........................................

14,570,000

17,356,221

GO,

2020

D-1,

4%,

3/01/44

..........................................

4,250,000

4,765,483

GO,

2021

C,

4%,

8/01/40

............................................

6,500,000

7,398,560

GO,

2021

C,

4%,

8/01/41

............................................

3,000,000

3,401,580

GO,

2021A,

Refunding,

4%,

8/01/34

....................................

4,290,000

5,024,319

Hudson

Yards

Infrastructure

Corp.

,

Revenue,

Senior

Lien,

2012A,

Pre-Refunded,

AGMC

Insured,

5%,

2/15/47

.......

730,000

739,957

Revenue,

Senior

Lien,

2012A,

AGMC

Insured,

5%,

2/15/47

..................

15,745,000

15,931,106

Long

Island

Power

Authority

,

Revenue

,

2016

B

,

Refunding

,

5

%

,

9/01/46

..........

13,000,000

15,427,490

Metropolitan

Transportation

Authority

,

Revenue,

2012A-1,

5%,

11/15/40

......................................

30,000,000

30,766,500

Revenue,

2013A,

5%,

11/15/38

.......................................

11,800,000

12,098,658

Revenue,

2013B,

5%,

11/15/43

.......................................

8,000,000

8,204,400

Revenue,

2015A,

5%,

11/15/40

.......................................

7,000,000

7,308,140

Revenue,

2015D-1,

Refunding,

5%,

11/15/32

.............................

1,250,000

1,322,462

Revenue,

2016

D,

Refunding,

5%,

11/15/31

..............................

1,180,000

1,263,568

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

Metropolitan

Transportation

Authority,

(continued)

Revenue,

2016B,

Refunding,

5%,

11/15/28

...............................

$

2,885,000

$

3,102,789

Revenue,

2016C-1,

5.25%,

11/15/56

...................................

14,765,000

15,792,349

Revenue,

2017

C-2,

Refunding,

Zero

Cpn.,

11/15/29

.......................

2,090,000

1,477,525

Revenue,

2017A-2,

Refunding,

5%,

11/15/26

.............................

4,425,000

4,787,850

Revenue,

2017C-1,

Refunding,

5%,

11/15/33

.............................

1,780,000

1,923,628

Revenue,

2019

A-2,

5%,

11/15/45

.....................................

46,270,000

49,651,874

Revenue,

2020

A-1,

4%,

11/15/45

.....................................

10,000,000

10,055,700

Revenue,

2020

A-1,

5%,

11/15/48

.....................................

7,000,000

7,590,660

Revenue,

2020

C-1,

4.75%,

11/15/45

...................................

13,220,000

14,020,868

Revenue,

2020

C-1,

5%,

11/15/50

.....................................

12,150,000

13,155,170

Revenue,

2020

C-1,

5.25%,

11/15/55

...................................

24,500,000

27,050,450

Revenue,

2020

D,

5%,

11/15/44

.......................................

17,000,000

18,496,000

Revenue,

2020

D,

4%,

11/15/50

.......................................

20,000,000

20,049,000

Monroe

County

Industrial

Development

Corp.

,

University

of

Rochester

,

Revenue

,

2020A

,

4

%

,

7/01/50

................................................

5,000,000

5,638,750

New

York

City

,

Water

&

Sewer

System,

Revenue,

2012

AA,

Pre-Refunded,

5%,

6/15/34

........

10,000,000

10,296,900

Water

&

Sewer

System,

Revenue,

2013

DD,

5%,

6/15/35

....................

30,705,000

34,213,660

Water

&

Sewer

System,

Revenue,

2014-BB,

5%,

6/15/46

....................

15,000,000

16,610,550

Water

&

Sewer

System,

Revenue,

2015

FF,

Refunding,

5%,

6/15/39

............

10,000,000

11,734,100

Water

&

Sewer

System,

Revenue,

2015

HH,

Refunding,

5%,

6/15/39

...........

15,000,000

17,601,150

Water

&

Sewer

System,

Revenue,

2017

CC,

Refunding,

5%,

6/15/46

...........

32,500,000

38,273,950

Water

&

Sewer

System,

Revenue,

2019

DD-1,

5.25%,

6/15/49

................

12,000,000

14,725,080

Water

&

Sewer

System,

Revenue,

2020

DD-1,

4%,

6/15/50

..................

8,000,000

9,158,080

New

York

City

Industrial

Development

Agency

,

Yankee

Stadium

LLC

,

Revenue

,

2020

A

,

Refunding

,

AGMC

Insured

,

4

%

,

3/01/45

.................................

6,000,000

6,814,260

New

York

City

Transitional

Finance

Authority

,

Building

Aid,

Revenue,

2011S-2A,

5%,

7/15/40

............................

35,000,000

36,056,300

Building

Aid,

Revenue,

2012

S-1A,

5.25%,

7/15/37

.........................

30,300,000

31,288,992

Future

Tax

Secured,

Revenue,

2011C,

5%,

11/01/39

.......................

5,000

5,016

Future

Tax

Secured,

Revenue,

2014A-1,

5%,

11/01/34

......................

15,000,000

16,991,700

Future

Tax

Secured,

Revenue,

2016

E-1,

5%,

2/01/38

......................

10,000,000

11,837,100

Future

Tax

Secured,

Revenue,

2017

F-1,

5%,

5/01/42

......................

11,095,000

13,322,654

Future

Tax

Secured,

Revenue,

2017B,

5%,

8/01/36

........................

10,000,000

12,014,500

Future

Tax

Secured,

Revenue,

2017B,

5%,

8/01/38

........................

10,000,000

11,977,800

Future

Tax

Secured,

Revenue,

2018

C-2,

5%,

5/01/38

......................

11,945,000

14,503,738

Future

Tax

Secured,

Revenue,

2018C-3,

4%,

5/01/43

.......................

19,800,000

21,998,988

Future

Tax

Secured,

Revenue,

2020

B-1,

4%,

11/01/45

.....................

5,200,000

5,838,716

Future

Tax

Secured,

Revenue,

2020

B-1,

4%,

11/01/47

.....................

10,000,000

11,206,300

Future

Tax

Secured,

Revenue,

2020C,

4%,

5/01/45

........................

3,500,000

3,977,155

New

York

Liberty

Development

Corp.

,

Revenue,

2011

-

1WTC,

5.25%,

12/15/43

................................

25,000,000

26,173,250

7

World

Trade

Center

II

LLC,

Revenue,

2012,

2,

Refunding,

5%,

9/15/43

........

6,500,000

6,822,400

Goldman

Sachs

Headquarters

LLC,

Revenue,

2005,

Refunding,

5.25%,

10/01/35

..

40,000,000

54,994,000

Goldman

Sachs

Headquarters

LLC,

Revenue,

2007,

5.5%,

10/01/37

...........

24,995,000

35,700,858

New

York

Power

Authority

,

Revenue

,

2020

A

,

Refunding

,

4

%

,

11/15/45

...........

8,055,000

9,273,883

New

York

State

Dormitory

Authority

,

Revenue,

2015B,

5%,

2/15/40

........................................

20,000,000

22,987,400

Revenue,

2018

E,

5%,

3/15/46

........................................

73,125,000

88,408,857

Revenue,

2018

E,

Pre-Refunded,

5%,

3/15/46

............................

5,000

6,729

State

of

New

York

Personal

Income

Tax,

Revenue,

2017B,

Refunding,

5%,

2/15/42

24,410,000

29,356,687

State

of

New

York

Personal

Income

Tax,

Revenue,

2019

D,

Refunding,

4%,

2/15/47

50,000,000

56,026,000

State

of

New

York

Sales

Tax,

Revenue,

2017

A,

5%,

3/15/43

.................

10,000,000

11,843,900

State

of

New

York

Sales

Tax,

Revenue,

2018

C,

Refunding,

5%,

3/15/42

........

33,280,000

40,050,150

State

of

New

York

Sales

Tax,

Revenue,

2018

E,

Refunding,

5%,

3/15/42

........

59,480,000

72,338,386

State

of

New

York

Sales

Tax,

Revenue,

2018A,

5%,

3/15/45

..................

25,000,000

29,943,250

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

New

York

(continued)

New

York

State

Dormitory

Authority,

(continued)

State

University

of

New

York,

Revenue,

2011A,

Pre-Refunded,

5%,

7/01/41

......

$

10,000,000

$

10,320,300

New

York

State

Thruway

Authority

,

Revenue,

2019

B,

4%,

1/01/45

........................................

20,000,000

22,332,400

Revenue,

Junior

Lien,

2016

A,

5%,

1/01/51

..............................

9,000,000

10,294,200

New

York

State

Urban

Development

Corp.

,

State

of

New

York

Personal

Income

Tax,

Revenue,

2011A,

5%,

3/15/31

.........

10,000,000

10,162,700

State

of

New

York

Personal

Income

Tax,

Revenue,

2019

A,

4%,

3/15/47

.........

15,200,000

16,789,464

State

of

New

York

Personal

Income

Tax,

Revenue,

2020

A,

4%,

3/15/45

.........

12,000,000

13,543,080

State

of

New

York

Personal

Income

Tax,

Revenue,

2020

C,

Refunding,

4%,

3/15/45

5,000,000

5,642,950

State

of

New

York

Personal

Income

Tax,

Revenue,

2020

C,

Refunding,

4%,

3/15/49

10,000,000

11,234,900

Port

Authority

of

New

York

&

New

Jersey

,

Revenue,

179,

5%,

12/01/38

.........................................

20,000,000

22,208,000

Revenue,

218,

4%,

11/01/47

.........................................

8,000,000

8,782,320

Revenue,

221,

4%,

7/15/45

..........................................

5,500,000

6,081,735

Suffolk

County

Water

Authority

,

Revenue

,

2020

B

,

3

%

,

6/01/45

.................

15,000,000

16,076,550

Triborough

Bridge

&

Tunnel

Authority

,

Revenue,

1999-B,

Pre-Refunded,

5.5%,

1/01/30

...........................

13,970,000

14,772,437

Revenue,

2020

A,

5%,

11/15/54

.......................................

8,500,000

10,419,470

1,339,296,756

North

Carolina

1.3%

City

of

Raleigh

,

Combined

Enterprise

System

,

Revenue

,

2011

,

Pre-Refunded

,

5

%

,

3/01/40

.........................................................

15,830,000

16,080,906

County

of

Wake

,

GO

,

2010-C

,

Refunding

,

5

%

,

3/01/25

.......................

21,780,000

26,202,211

North

Carolina

Eastern

Municipal

Power

Agency

,

Revenue,

1993

B,

ETM,

6%,

1/01/22

...................................

1,250,000

1,332,975

Revenue,

1993

B,

ETM,

6.25%,

1/01/23

.................................

39,030,000

44,028,572

North

Carolina

Medical

Care

Commission

,

Presbyterian

Homes

Obligated

Group

,

Revenue

,

2020A

,

5

%

,

10/01/50

.......................................

2,200,000

2,536,974

North

Carolina

Turnpike

Authority

,

Revenue,

2009B,

AGMC

Insured,

Zero

Cpn.,

1/01/33

.......................

25,000,000

17,969,000

Revenue,

2009B,

AGMC

Insured,

Zero

Cpn.,

1/01/34

.......................

15,000,000

10,370,850

Revenue,

2009B,

AGMC

Insured,

Zero

Cpn.,

1/01/35

.......................

15,215,000

10,134,407

Revenue,

2018A,

Refunding,

4%,

1/01/39

...............................

10,000,000

11,453,000

140,108,895

North

Dakota

0.4%

North

Dakota

Housing

Finance

Agency

,

Revenue,

2019F,

3.05%,

7/01/43

......................................

2,480,000

2,593,435

Revenue,

2020

A,

3%,

7/01/40

........................................

2,500,000

2,625,250

State

Board

of

Higher

Education

of

the

State

of

North

Dakota

,

Revenue,

2019

A,

AGMC

Insured,

4%,

4/01/44

............................

10,000,000

11,354,600

Revenue,

2019

A,

AGMC

Insured,

4%,

4/01/50

............................

9,620,000

10,833,178

University

of

North

Dakota

,

COP,

2018

A,

5%,

4/01/48

...........................................

5,500,000

6,448,970

COP,

2018

A,

5%,

4/01/57

...........................................

10,000,000

11,551,700

45,407,133

Ohio

3.8%

c

Akron

Bath

Copley

Joint

Township

Hospital

District

,

Summa

Health

System

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

11/15/37

3,915,000

4,342,166

Summa

Health

System

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

11/15/38

5,700,000

6,299,526

American

Municipal

Power,

Inc.

,

Revenue,

2015A,

Refunding,

5%,

2/15/39

...............................

5,000,000

5,558,200

Revenue,

2015A,

Refunding,

5%,

2/15/42

...............................

2,500,000

2,772,325

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Ohio

(continued)

American

Municipal

Power,

Inc.,

(continued)

Revenue,

2016A,

Refunding,

5%,

2/15/46

...............................

$

20,000,000

$

23,041,200

Revenue,

2019

C,

Refunding,

4%,

2/15/39

...............................

18,795,000

21,963,085

Buckeye

Tobacco

Settlement

Financing

Authority

,

Revenue,

A-3,

Pre-Refunded,

6.25%,

6/01/37

.............................

15,000,000

16,396,200

Revenue,

Senior

Lien,

2020A-2,

1,

Refunding,

4%,

6/01/48

..................

10,235,000

11,102,621

City

of

Akron

,

Community

Learning

Center

Income

Tax

,

Revenue

,

2012

A

,

Refunding

,

5

%

,

12/01/29

.....................................................

10,000,000

10,694,700

City

of

Cleveland

,

Airport

System

,

Revenue

,

2012A

,

Pre-Refunded

,

AGMC

Insured

,

5

%

,

1/01/28

......................................................

9,500,000

10,025,160

City

of

Middleburg

Heights

,

Southwest

General

Health

Center

Obligated

Group

,

Revenue

,

2020

A

,

Refunding

,

4

%

,

8/01/47

...............................

4,430,000

4,932,052

City

of

Toledo

,

Water

System

,

Revenue

,

2013

,

Refunding

,

5

%

,

11/15/38

..........

20,000,000

21,995,400

Cleveland-Cuyahoga

County

Port

Authority

,

County

of

Cuyahoga

,

Revenue

,

2013

,

5

%

,

7/01/37

.........................................................

6,000,000

8,325,960

County

of

Butler

,

UC

Health

Obligated

Group

,

Revenue

,

2016

,

Refunding

,

5

%

,

11/15/45

........................................................

7,500,000

8,571,375

County

of

Franklin

,

OhioHealth

Obligated

Group,

Revenue,

2015,

5%,

5/15/40

...................

10,000,000

11,433,100

Trinity

Health

Corp.

Obligated

Group,

Revenue,

2017,

5%,

12/01/46

............

10,000,000

11,731,600

Trinity

Health

Corp.

Obligated

Group,

Revenue,

2017

A-OH,

5%,

12/01/47

.......

10,800,000

12,790,656

Trinity

Health

Corp.

Obligated

Group,

Revenue,

2019

A,

4%,

12/01/44

..........

5,640,000

6,347,200

County

of

Hamilton

,

Christ

Hospital

Obligated

Group,

Revenue,

2012,

Pre-Refunded,

AGMC

Insured,

5%,

6/01/42

........................................................

22,500,000

24,167,025

Sewer

System,

Revenue,

2013A,

Refunding,

5%,

12/01/38

..................

12,000,000

13,475,640

UC

Health

Obligated

Group,

Revenue,

2020,

5%,

9/15/50

...................

7,500,000

8,772,975

Kent

State

University

,

Revenue

,

2012

A

,

Pre-Refunded

,

5

%

,

5/01/37

.............

10,500,000

11,246,760

Miami

University

,

Revenue

,

2020A

,

Refunding

,

4

%

,

9/01/45

....................

6,030,000

6,942,037

Northeast

Ohio

Regional

Sewer

District

,

Revenue,

2017,

Refunding,

4%,

11/15/38

................................

10,000,000

11,626,900

Revenue,

2017,

Refunding,

4%,

11/15/43

................................

10,000,000

11,437,300

Ohio

Air

Quality

Development

Authority

,

Buckeye

Power,

Inc.

,

Revenue

,

2010

,

6

%

,

12/01/40

........................................................

15,000,000

15,064,500

c

Ohio

Higher

Educational

Facility

Commission

,

Judson

Obligated

Group,

Revenue,

2020

A,

Refunding,

5%,

12/01/42

...........

1,350,000

1,470,326

Judson

Obligated

Group,

Revenue,

2020

A,

Refunding,

5%,

12/01/45

...........

1,185,000

1,281,400

Judson

Obligated

Group,

Revenue,

2020

A,

Refunding,

5%,

12/01/50

...........

2,530,000

2,724,936

Ohio

State

University

(The)

,

Revenue

,

2013A

,

5

%

,

6/01/38

....................

10,000,000

10,993,300

Ohio

Turnpike

&

Infrastructure

Commission

,

Revenue,

2018

A,

5%,

2/15/43

........................................

20,000,000

24,399,400

Revenue,

Junior

Lien,

2013

A-4,

Zero

Cpn.,

2/15/35

........................

35,000,000

42,457,450

State

of

Ohio

,

Cleveland

Clinic

Health

System

Obligated

Group,

Revenue,

2017A,

Refunding,

4%,

1/01/36

........................................................

6,500,000

7,477,405

Cleveland

Clinic

Health

System

Obligated

Group,

Revenue,

2019B,

4%,

1/01/43

..

12,130,000

13,826,744

Premier

Health

Partners

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

11/15/38

640,000

695,629

Premier

Health

Partners

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

11/15/40

855,000

923,032

University

Hospitals

Health

System,

Inc.

Obligated

Group,

Revenue,

2012

A,

AGMC

Insured,

5%,

1/15/41

..............................................

7,000,000

7,270,480

414,575,765

Oklahoma

0.2%

Edmond

Public

Works

Authority

,

Revenue,

2017,

5%,

7/01/42

.........................................

4,000,000

4,803,960

Revenue,

2017,

5%,

7/01/47

.........................................

4,500,000

5,344,155

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Oklahoma

(continued)

McGee

Creek

Authority

,

Revenue

,

1992

,

NATL

Insured

,

6

%

,

1/01/23

.............

$

120,000

$

127,258

Norman

Regional

Hospital

Authority

,

Norman

Regional

Hospital

Authority

Obligated

Group

,

Revenue

,

2019

,

5

%

,

9/01/45

....................................

3,500,000

4,067,595

Oklahoma

Water

Resources

Board

,

Revenue

,

2020

A

,

4

%

,

10/01/45

.............

4,000,000

4,709,560

19,052,528

Oregon

1.9%

Clackamas

&

Washington

Counties

School

District

No.

3

,

GO,

2020

A,

Refunding,

Zero

Cpn.,

6/15/43

..............................

3,250,000

1,756,007

GO,

2020

A,

Refunding,

Zero

Cpn.,

6/15/45

..............................

3,200,000

1,607,008

GO,

2020

A,

Refunding,

Zero

Cpn.,

6/15/46

..............................

2,500,000

1,214,450

GO,

2020

A,

Refunding,

Zero

Cpn.,

6/15/47

..............................

4,650,000

2,185,314

GO,

2020

A,

Refunding,

Zero

Cpn.,

6/15/50

..............................

2,000,000

847,180

Columbia

County

School

District

No.

502

,

GO,

2020

A,

Zero

Cpn.,

6/15/50

.......................................

6,000,000

2,563,320

GO,

2020

B,

5%,

6/15/45

............................................

3,500,000

4,086,740

County

of

Yamhill

,

Linfield

University

,

Revenue

,

2020

A

,

Refunding

,

5

%

,

10/01/50

...

12,210,000

13,308,778

Medford

Hospital

Facilities

Authority

,

Asante

Health

System

Obligated

Group

,

Revenue

,

2020A

,

Refunding

,

5

%

,

8/15/50

.......................................

4,000,000

4,834,200

Oregon

City

School

District

No.

62

,

GO

,

2018

B

,

Refunding

,

5

%

,

6/15/49

..........

20,000,000

24,522,800

Oregon

Health

&

Science

University

,

Oregon

Health

&

Science

University

Obligated

Group

,

Revenue

,

2019

A

,

Refunding

,

4

%

,

7/01/44

.........................

1,685,000

1,931,616

Port

of

Portland

,

Airport,

Revenue,

25B,

5%,

7/01/49

....................................

12,720,000

14,859,886

Airport,

Revenue,

TWENTY

SEVEN

A,

5%,

7/01/45

........................

23,000,000

27,259,370

Salem

Hospital

Facility

Authority

,

Salem

Health

Obligated

Group

,

Revenue

,

2019

A

,

Refunding

,

5

%

,

5/15/44

.............................................

16,880,000

20,306,134

Salem-Keizer

School

District

No.

24J

,

GO,

2020

A,

Zero

Cpn.,

6/15/39

.......................................

2,800,000

1,770,020

GO,

2020

A,

Zero

Cpn.,

6/15/40

.......................................

4,500,000

2,748,285

State

of

Oregon

,

Department

of

Transportation,

Revenue,

Sub.

Lien,

2019A,

Refunding,

4%,

11/15/42

15,000,000

17,589,450

Housing

&

Community

Services

Department,

Revenue,

2018

A,

3.6%,

1/01/33

....

9,145,000

9,991,004

Housing

&

Community

Services

Department,

Revenue,

2018

D,

3.8%,

7/01/34

....

8,750,000

9,777,250

University

of

Oregon

,

Revenue,

2018A,

5%,

4/01/48

........................................

14,500,000

17,415,225

Revenue,

2020A,

5%,

4/01/50

........................................

15,000,000

18,712,200

Washington

Clackamas

&

Yamhill

Counties

School

District

No.

88J

,

GO,

2018

A,

Zero

Cpn.,

6/15/41

.......................................

5,725,000

2,811,605

GO,

2018

A,

Zero

Cpn.,

6/15/42

.......................................

5,900,000

2,771,112

GO,

2018

A,

Zero

Cpn.,

6/15/43

.......................................

5,500,000

2,470,105

207,339,059

Pennsylvania

2.4%

Allegheny

County

Sanitary

Authority

,

Revenue

,

2013

,

BAM

Insured

,

5.25

%

,

12/01/44

5,000,000

5,646,200

Bucks

County

Water

and

Sewer

Authority

,

Revenue,

2011,

Pre-Refunded,

AGMC

Insured,

5%,

12/01/33

.................

5,500,000

5,782,260

Revenue,

2011,

Pre-Refunded,

AGMC

Insured,

5%,

12/01/37

.................

10,520,000

11,059,886

Revenue,

2011,

Pre-Refunded,

AGMC

Insured,

5%,

12/01/41

.................

5,110,000

5,372,245

City

of

Philadelphia

,

Airport,

Revenue,

2020

C,

Refunding,

4%,

7/01/45

.........................

1,500,000

1,618,605

Airport,

Revenue,

2020

C,

Refunding,

4%,

7/01/50

.........................

1,825,000

1,957,550

Water

&

Wastewater,

Revenue,

2015A,

5%,

7/01/45

........................

15,000,000

16,880,250

Commonwealth

Financing

Authority

,

Commonwealth

of

Pennsylvania

Department

of

Community

&

Economic

Development,

Revenue,

2013

A-2,

Pre-Refunded,

5%,

6/01/42

..............

5,400,000

5,804,514

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Pennsylvania

(continued)

Commonwealth

Financing

Authority,

(continued)

Commonwealth

of

Pennsylvania

Department

of

Community

&

Economic

Development,

Revenue,

2015A,

5%,

6/01/33

............................

$

4,550,000

$

5,324,182

Commonwealth

of

Pennsylvania

,

GO,

First

Series

,

2015

,

Refunding

,

AGMC

Insured

,

5

%

,

8/15/26

......................................................

20,805,000

25,264,968

County

of

Allegheny

,

GO

,

C-78

,

4

%

,

11/01/45

..............................

4,000,000

4,702,160

Delaware

County

Regional

Water

Quality

Control

Authority

,

Revenue,

2016,

5%,

11/01/41

........................................

5,000,000

6,039,050

Revenue,

2016,

5%,

11/01/46

........................................

10,315,000

12,386,149

Erie

City

Water

Authority

,

Revenue

,

2016

,

Refunding

,

5

%

,

12/01/43

..............

5,000,000

5,978,900

Geisinger

Authority

,

Geisinger

Health

System

Obligated

Group

,

Revenue

,

2020A

,

Refunding

,

4

%

,

4/01/39

.............................................

3,500,000

4,011,665

Montgomery

County

Industrial

Development

Authority

,

ACTS

Retirement-Life

Communities,

Inc.

Obligated

Group,

Revenue,

2020

C,

4%,

11/15/43

.......................................................

600,000

651,108

ACTS

Retirement-Life

Communities,

Inc.

Obligated

Group,

Revenue,

2020

C,

5%,

11/15/45

.......................................................

1,000,000

1,163,530

Meadowood

Corp.

Obligated

Group

(The),

Revenue,

2018A,

Refunding,

5%,

12/01/48

.......................................................

9,000,000

9,578,250

Montour

School

District

,

GO,

2015A

&

B,

AGMC

Insured,

5%,

4/01/40

.............................

3,170,000

3,721,200

GO,

2015A

&

B,

AGMC

Insured,

5%,

4/01/41

.............................

2,000,000

2,342,560

GO,

2015A

&

B,

AGMC

Insured,

5%,

4/01/42

.............................

2,000,000

2,336,340

Pennsylvania

Economic

Development

Financing

Authority

,

Aqua

Pennsylvania,

Inc.

,

Revenue

,

2010B

,

5

%

,

12/01/43

.......................................

20,000,000

20,040,000

Pennsylvania

Higher

Educational

Facilities

Authority

,

Drexel

University,

Revenue,

2020

A,

Refunding,

AGMC

Insured,

4%,

5/01/40

.....

3,575,000

4,061,271

Drexel

University,

Revenue,

2020

A,

Refunding,

AGMC

Insured,

4%,

5/01/41

.....

5,425,000

6,140,829

Pennsylvania

Turnpike

Commission

,

Revenue,

2009C,

AGMC

Insured,

6.25%,

6/01/33

.........................

5,000,000

6,336,300

Revenue,

2020

B,

5%,

12/01/45

.......................................

5,000,000

6,228,600

Revenue,

2020

B,

5%,

12/01/50

.......................................

8,000,000

9,845,280

Philadelphia

Gas

Works

Co.

,

Revenue

,

SIXTEENTH

A

,

AGMC

Insured

,

4

%

,

8/01/45

.

4,000,000

4,541,440

School

District

of

Philadelphia

(The)

,

GO,

2016F,

Refunding,

5%,

9/01/33

....................................

6,415,000

7,668,042

GO,

2016F,

Refunding,

5%,

9/01/36

....................................

4,090,000

4,851,190

Sports

&

Exhibition

Authority

of

Pittsburgh

and

Allegheny

County

,

Revenue

,

2010

,

Refunding

,

AGMC

Insured

,

5

%

,

2/01/35

.................................

18,000,000

18,030,060

State

Public

School

Building

Authority

,

School

District

of

Philadelphia

(The)

,

Revenue

,

2016

A

,

Refunding

,

AGMC

Insured

,

5

%

,

6/01/32

...........................

10,000,000

12,015,500

Westmoreland

County

Municipal

Authority

,

Revenue

,

2016

,

Refunding

,

BAM

Insured

,

5

%

,

8/15/42

......................................................

17,205,000

20,136,044

257,516,128

Rhode

Island

0.2%

Rhode

Island

Health

and

Educational

Building

Corp.

,

Lifespan

Obligated

Group,

Revenue,

2016,

Refunding,

5%,

5/15/39

............

5,500,000

6,083,165

Town

of

East

Greenwich,

Revenue,

2012

A,

5%,

5/15/37

....................

10,000,000

10,721,700

Rhode

Island

Housing

and

Mortgage

Finance

Corp.

,

Revenue,

10-A,

6.5%,

10/01/22

.......................................

170,000

170,651

Revenue,

10-A,

6.5%,

4/01/27

........................................

130,000

130,480

Revenue,

15-A,

6.85%,

10/01/24

......................................

120,000

120,516

17,226,512

South

Carolina

1.3%

City

of

Columbia

,

Waterworks

&

Sewer

System,

Revenue,

2019

A,

4%,

2/01/44

.................

5,250,000

6,027,787

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

South

Carolina

(continued)

City

of

Columbia,

(continued)

Waterworks

&

Sewer

System,

Revenue,

2019

A,

5%,

2/01/49

.................

$

8,000,000

$

9,958,160

City

of

Rock

Hill

,

Combined

Utility

System,

Revenue,

2016,

5%,

1/01/41

......................

7,690,000

8,783,903

Combined

Utility

System,

Revenue,

2016,

5%,

1/01/47

......................

5,000,000

5,660,400

County

of

Greenwood

,

Self

Regional

Healthcare

Auxiliary,

Revenue,

2017,

Refunding,

4%,

10/01/37

.....

8,465,000

9,487,149

Self

Regional

Healthcare

Auxiliary,

Revenue,

2017,

Refunding,

4%,

10/01/39

.....

1,195,000

1,332,461

Piedmont

Municipal

Power

Agency

,

Revenue

,

1991

,

Refunding

,

NATL

Insured

,

6.25

%

,

1/01/21

.........................................................

200,000

201,928

South

Carolina

Jobs-Economic

Development

Authority

,

Prisma

Health

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

5/01/43

......

20,000,000

23,140,800

Prisma

Health

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

5/01/48

......

15,000,000

17,182,350

South

Carolina

Ports

Authority

,

Revenue,

2019

B,

5%,

7/01/44

........................................

10,000,000

12,009,100

Revenue,

2019

B,

5%,

7/01/54

........................................

10,365,000

12,305,639

South

Carolina

Public

Service

Authority

,

Revenue

,

2015A

,

Refunding

,

5

%

,

12/01/55

.

20,000,000

22,558,200

South

Carolina

State

Housing

Finance

&

Development

Authority

,

Revenue

,

2020

A

,

3

%

,

7/01/40

......................................................

2,000,000

2,108,240

Spartanburg

Regional

Health

Services

District

,

Spartanburg

Regional

Health

Services

District

Obligated

Group,

Revenue,

2020

A,

AGMC

Insured,

4%,

4/15/37

........................................

1,415,000

1,630,915

Spartanburg

Regional

Health

Services

District

Obligated

Group,

Revenue,

2020

A,

AGMC

Insured,

4%,

4/15/39

........................................

1,410,000

1,615,395

Spartanburg

Regional

Health

Services

District

Obligated

Group,

Revenue,

2020

A,

AGMC

Insured,

4%,

4/15/45

........................................

2,750,000

3,089,762

Spartanburg

Regional

Health

Services

District

Obligated

Group,

Revenue,

2020

A,

AGMC

Insured,

3%,

4/15/49

........................................

2,000,000

2,022,080

139,114,269

South

Dakota

1.3%

Huron

School

District

No.

2-2

,

GO

,

2013

,

Refunding

,

5

%

,

6/15/39

...............

4,000,000

4,551,920

South

Dakota

Health

&

Educational

Facilities

Authority

,

Revenue,

2011A,

5.125%,

8/01/46

.....................................

7,000,000

7,220,430

Revenue,

2012A,

Refunding,

5%,

8/01/46

...............................

6,005,000

6,416,763

Revenue,

2015A,

Refunding,

5%,

8/01/38

...............................

3,475,000

4,113,740

Avera

Health

Obligated

Group,

Revenue,

2017,

Refunding,

4%,

7/01/42

.........

10,000,000

10,982,000

Avera

Health

Obligated

Group,

Revenue,

2017,

Refunding,

5%,

7/01/46

.........

51,050,000

59,288,959

Monument

Health

Obligated

Group,

Revenue,

2017,

4%,

9/01/37

..............

10,920,000

12,263,378

Monument

Health

Obligated

Group,

Revenue,

2017,

5%,

9/01/40

..............

10,000,000

11,826,000

Monument

Health

Obligated

Group,

Revenue,

2020

A,

Refunding,

4%,

9/01/50

...

12,500,000

13,707,125

South

Dakota

State

Building

Authority

,

Revenue

,

2017

A

,

Refunding

,

5

%

,

6/01/42

...

5,450,000

6,548,720

136,919,035

Tennessee

1.9%

Chattanooga

Health

Educational

&

Housing

Facility

Board

,

CommonSpirit

Health

Obligated

Group

,

Revenue

,

2019A-1

,

Refunding

,

4

%

,

8/01/44

................

2,000,000

2,169,060

City

of

Jackson

,

West

Tennessee

Healthcare

Obligated

Group

,

Revenue

,

2015

,

Refunding

,

4

%

,

4/01/41

.............................................

25,000,000

26,620,250

City

of

Memphis

,

Electric

System

,

Revenue

,

2020A

,

4

%

,

12/01/50

...............

6,000,000

7,013,700

Johnson

City

Health

&

Educational

Facilities

Board

,

Mountain

States

Health

Alliance

Obligated

Group,

Revenue,

1998,

Pre-Refunded,

NATL

Insured,

5.125%,

7/01/25

......................................

65,000

66,058

Mountain

States

Health

Alliance

Obligated

Group,

Revenue,

1998,

NATL

Insured,

ETM,

5.25%,

7/01/28

.............................................

8,500,000

9,204,735

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Tennessee

(continued)

Knox

County

Health

Educational

&

Housing

Facility

Board

,

Covenant

Health

Obligated

Group

,

Revenue

,

2016

A

,

Refunding

,

5

%

,

1/01/42

.........................

$

35,000,000

$

40,341,700

Memphis-Shelby

County

Airport

Authority

,

Revenue,

2018,

5%,

7/01/43

.........................................

10,000,000

11,726,400

Revenue,

2018,

5%,

7/01/47

.........................................

11,000,000

12,814,670

Metropolitan

Government

of

Nashville

&

Davidson

County

,

Water

&

Sewer,

Revenue,

2017

A,

5%,

7/01/46

...........................

6,000,000

7,193,160

Water

&

Sewer,

Revenue,

2017

B,

5%,

7/01/42

...........................

21,645,000

26,131,143

Water

&

Sewer,

Revenue,

2017

B,

5%,

7/01/46

...........................

15,925,000

19,091,845

Metropolitan

Nashville

Airport

Authority

(The)

,

Revenue

,

2019

B

,

5

%

,

7/01/44

......

20,000,000

23,766,600

Tennessee

Housing

Development

Agency

,

Revenue

,

2018-4

,

Refunding

,

4

%

,

7/01/43

6,825,000

7,408,947

Tennessee

State

School

Bond

Authority

,

Revenue

,

2017A

,

5

%

,

11/01/47

..........

15,000,000

18,158,400

211,706,668

Texas

10.2%

Central

Texas

Regional

Mobility

Authority

,

Revenue,

Senior

Lien,

2011,

Pre-Refunded,

6%,

1/01/41

....................

14,000,000

14,130,060

Revenue,

Senior

Lien,

2015A,

Refunding,

5%,

1/01/45

......................

5,000,000

5,606,650

Revenue,

Senior

Lien,

2016,

Refunding,

5%,

1/01/40

.......................

12,505,000

14,258,701

Revenue,

Senior

Lien,

2016,

Refunding,

5%,

1/01/46

.......................

11,245,000

12,713,935

Central

Texas

Turnpike

System

,

Revenue,

2015-B,

Refunding,

5%,

8/15/37

...............................

10,000,000

11,308,800

Revenue,

2015-C,

Refunding,

5%,

8/15/37

...............................

5,000,000

5,628,000

Revenue,

2015-C,

Refunding,

5%,

8/15/42

...............................

20,000,000

22,345,000

Revenue,

First

Tier,

Pre-Refunded,

AGMC

Insured,

5%,

8/15/41

...............

25,665,000

27,819,469

City

of

Arlington

,

Special

Tax,

Senior

Lien

,

2018

A

,

AGMC

Insured

,

4

%

,

2/15/44

.....

20,000,000

21,529,600

City

of

Austin

,

Electric

Utility,

Revenue,

2015A,

Refunding,

5%,

11/15/45

...................

10,000,000

11,822,300

Water

&

Wastewater

System,

Revenue,

2013

A,

Refunding,

5%,

11/15/38

.......

20,000,000

22,059,000

City

of

Brownsville

,

Utilities

System

,

Revenue

,

2020

,

Refunding

,

AGMC

Insured

,

3

%

,

9/01/50

.........................................................

3,000,000

3,160,680

City

of

Corpus

Christi

,

Utility

System,

Revenue,

Junior

Lien,

2013,

Pre-Refunded,

5%,

7/15/38

.........

6,000,000

6,756,000

Utility

System,

Revenue,

Junior

Lien,

2013,

Pre-Refunded,

5%,

7/15/43

.........

7,000,000

7,882,000

Utility

System,

Revenue,

Junior

Lien,

2015A,

5%,

7/15/40

...................

13,200,000

15,585,768

City

of

Dallas

,

Revenue

,

2009

,

Refunding

,

AGMC

Insured

,

5.25

%

,

8/15/34

........

18,975,000

19,040,653

City

of

Houston

,

Combined

Utility

System,

Revenue,

First

Lien,

2002

C,

Refunding,

4%,

11/15/43

..

7,500,000

8,887,350

Combined

Utility

System,

Revenue,

First

Lien,

2002

C,

Refunding,

5%,

11/15/45

..

5,000,000

6,447,200

Combined

Utility

System,

Revenue,

First

Lien,

2002

C,

Refunding,

4%,

11/15/49

..

5,000,000

5,873,100

Combined

Utility

System,

Revenue,

First

Lien,

2011D,

Pre-Refunded,

5%,

11/15/36

10,000,000

10,493,100

City

of

Laredo

,

Waterworks

&

Sewer

System

,

Revenue

,

2016

,

Refunding

,

4

%

,

3/01/41

9,690,000

10,730,415

City

of

San

Antonio

,

Electric

&

Gas

Systems

,

Revenue,

Junior

Lien

,

2013

,

Pre-

Refunded

,

5

%

,

2/01/38

.............................................

10,000,000

11,048,100

City

of

San

Marcos

,

Electric

Utility

System

,

Revenue

,

2013

,

BAM

Insured

,

5

%

,

11/01/33

6,300,000

6,834,618

Dallas

Area

Rapid

Transit

,

Revenue,

Senior

Lien,

2016A,

Refunding,

5%,

12/01/46

.....................

10,000,000

11,899,100

Revenue,

Senior

Lien,

2016A,

Refunding,

5%,

12/01/48

.....................

12,200,000

14,510,192

Dallas

Fort

Worth

International

Airport

,

Revenue

,

2013D

,

Refunding

,

5.25

%

,

11/01/32

10,000,000

11,157,900

Ector

County

Independent

School

District

,

GO

,

2013

,

PSF

Guaranty

,

5

%

,

8/15/36

...

10,355,000

11,524,287

Forney

Independent

School

District

,

GO

,

2015

,

Refunding

,

PSF

Guaranty

,

5

%

,

8/15/37

15,000,000

17,847,000

Frisco

Independent

School

District

,

GO

,

2016

,

PSF

Guaranty

,

5

%

,

8/15/46

........

20,000,000

23,936,000

Goose

Creek

Consolidated

Independent

School

District

,

GO

,

2013

,

Pre-Refunded

,

PSF

Guaranty

,

5

%

,

2/15/38

..............................................

6,045,000

6,696,893

Grand

Parkway

Transportation

Corp.

,

Revenue,

2013

B,

Zero

Cpn.,

10/01/45

..................................

10,000,000

11,286,000

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

(continued)

Grand

Parkway

Transportation

Corp.,

(continued)

Revenue,

2018

A,

5%,

10/01/48

.......................................

$

7,720,000

$

9,416,007

Revenue,

First

Tier,

2020

C,

Refunding,

4%,

10/01/45

......................

15,455,000

17,728,276

Harris

County

Cultural

Education

Facilities

Finance

Corp.

,

Houston

Methodist

Hospital

Obligated

Group,

Revenue,

2015,

5%,

12/01/45

.....

30,000,000

34,228,800

Memorial

Hermann

Health

System

Obligated

Group,

Revenue,

2016

A,

Refunding,

5%,

7/01/45

....................................................

15,000,000

17,268,000

Harris

County

Toll

Road

Authority

(The)

,

Revenue,

Senior

Lien

,

2018

A

,

Refunding

,

5

%

,

8/15/43

.........................................................

6,000,000

7,267,500

Harris

County-Houston

Sports

Authority

,

Revenue,

Senior

Lien,

2020A,

Refunding,

AGMC

Insured,

3.125%,

11/15/56

.....

5,000,000

5,007,500

Revenue,

Third

Lien,

2004A-3,

NATL

Insured,

Zero

Cpn.,

11/15/37

.............

6,300,000

2,575,818

Hidalgo

County

Regional

Mobility

Authority

,

Revenue,

Senior

Lien,

2013,

Pre-Refunded,

5.25%,

12/01/38

.................

5,000,000

5,744,350

Revenue,

Senior

Lien,

2013,

Pre-Refunded,

5%,

12/01/43

...................

5,000,000

5,706,150

Lamar

Consolidated

Independent

School

District

,

GO

,

2018

,

PSF

Guaranty

,

5

%

,

2/15/43

.........................................................

30,000,000

35,860,500

Lower

Colorado

River

Authority

,

LCRA

Transmission

Services

Corp.,

Revenue,

2013

A,

Refunding,

5%,

5/15/36

...

10,000,000

11,077,400

LCRA

Transmission

Services

Corp.,

Revenue,

2018,

Refunding,

5%,

5/15/43

.....

10,000,000

12,186,000

New

Hope

Cultural

Education

Facilities

Finance

Corp.

,

CHF-Collegiate

Housing

Corpus

Christi

II

LLC,

Revenue,

A,

5%,

4/01/48

........

7,825,000

7,009,870

CHF-Collegiate

Housing

Island

Campus

LLC,

Revenue,

2017A,

5%,

4/01/37

.....

2,500,000

2,436,600

NCCD-Cain

Hall

Redevelopment

I

LLC,

Revenue,

2016A-1,

5%,

4/01/46

........

6,000,000

6,884,340

NCCD-College

Station

Properties

LLC,

Revenue,

A,

5%,

7/01/47

..............

10,000,000

8,300,000

Quality

Senior

Housing

Foundation

of

East

Texas,

Inc.,

Revenue,

2019

A-1,

5%,

12/01/39

.......................................................

5,650,000

6,076,405

Quality

Senior

Housing

Foundation

of

East

Texas,

Inc.,

Revenue,

2019

A-1,

5%,

12/01/49

.......................................................

11,470,000

12,138,472

Quality

Senior

Housing

Foundation

of

East

Texas,

Inc.,

Revenue,

2019

A-1,

5%,

12/01/54

.......................................................

230,000

242,519

North

East

Texas

Regional

Mobility

Authority

,

Revenue,

Senior

Lien

,

2016A

,

5

%

,

1/01/41

.........................................................

16,750,000

18,510,090

North

Harris

County

Regional

Water

Authority

,

Revenue,

Senior

Lien,

2016,

Refunding,

4%,

12/15/41

......................

20,000,000

22,340,200

Revenue,

Senior

Lien,

2016,

Refunding,

5%,

12/15/46

......................

18,460,000

22,378,135

North

Texas

Tollway

Authority

,

North

Texas

Tollway

System,

Revenue,

2015A,

Refunding,

5%,

1/01/35

.........

10,000,000

11,534,500

North

Texas

Tollway

System,

Revenue,

2015A,

Refunding,

5%,

1/01/38

.........

10,000,000

11,477,400

North

Texas

Tollway

System,

Revenue,

First

Tier,

2017A,

Refunding,

5%,

1/01/43

..

47,000,000

56,349,240

North

Texas

Tollway

System,

Revenue,

First

Tier,

2017A,

Refunding,

5%,

1/01/48

..

33,500,000

40,008,380

North

Texas

Tollway

System,

Revenue,

First

Tier,

I,

Refunding,

6.5%,

1/01/43

.....

25,000,000

30,037,500

North

Texas

Tollway

System,

Revenue,

Second

Tier,

2017B,

Refunding,

5%,

1/01/48

10,000,000

11,581,700

North

Texas

Tollway

System,

Revenue,

Second

Tier,

2018,

Refunding,

5%,

1/01/48

25,250,000

29,750,812

Special

Projects

System,

Revenue,

2011

B,

Pre-Refunded,

Zero

Cpn.,

9/01/37

....

7,500,000

4,173,975

Special

Projects

System,

Revenue,

2011

B,

Pre-Refunded,

Zero

Cpn.,

9/01/43

....

7,500,000

2,617,725

Special

Projects

System,

Revenue,

2011

C,

Pre-Refunded,

0%,

9/01/45

.........

25,000,000

36,817,250

Port

Freeport

,

Revenue,

Senior

Lien

,

2019

A

,

5

%

,

6/01/49

.....................

4,000,000

4,778,720

San

Antonio

Public

Facilities

Corp.

,

Revenue

,

2012

,

Refunding

,

4

%

,

9/15/42

.......

36,500,000

37,860,720

San

Antonio

Water

System

,

Revenue,

Junior

Lien,

2018A,

Refunding,

5%,

5/15/43

......................

12,000,000

14,976,480

Revenue,

Junior

Lien,

2018A,

Refunding,

5%,

5/15/48

......................

10,000,000

12,402,000

San

Jacinto

River

Authority

,

Revenue,

2011,

AGMC

Insured,

5%,

10/01/32

............................

5,000,000

5,016,000

Revenue,

2011,

AGMC

Insured,

5%,

10/01/37

............................

3,000,000

3,010,080

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Texas

(continued)

Southwest

Higher

Education

Authority,

Inc.

,

Southern

Methodist

University

,

Revenue

,

2013A

,

5

%

,

10/01/38

...............................................

$

24,380,000

$

26,908,206

Tarrant

County

Cultural

Education

Facilities

Finance

Corp.

,

CHRISTUS

Health

Obligated

Group,

Revenue,

2018

B,

5%,

7/01/43

...........

10,000,000

12,049,100

Cook

Children's

Medical

Center

Obligated

Group,

Revenue,

2013

A,

5.25%,

12/01/39

10,000,000

11,065,200

Hendrick

Medical

Center

Obligated

Group,

Revenue,

2013,

5.5%,

9/01/43

.......

5,350,000

5,815,396

Texas

Health

Resources

Obligated

Group,

Revenue,

2015A,

5%,

11/15/52

.......

5,000,000

5,612,850

Tarrant

County

Health

Facilities

Development

Corp.

,

Texas

Health

Resources

Obligated

Group,

Revenue,

1994,

FGIC

Insured,

ETM,

6%,

9/01/24

........................................................

3,460,000

3,918,761

Texas

Municipal

Power

Agency

,

Revenue,

Sub.

Lien

,

2010

,

Refunding

,

5

%

,

9/01/40

.

15,250,000

15,300,478

Texas

Transportation

Commission

,

Revenue,

First

Tier,

2019A,

Zero

Cpn.,

8/01/48

...........................

6,250,000

1,786,500

Revenue,

First

Tier,

2019A,

Zero

Cpn.,

8/01/49

...........................

5,000,000

1,356,400

Revenue,

First

Tier,

2019A,

Zero

Cpn.,

8/01/50

...........................

5,500,000

1,406,955

Texas

Water

Development

Board

,

State

Water

Implementation

Revenue

Fund

for

Texas,

Revenue,

2018

B,

4%,

10/15/43

.......................................................

25,000,000

29,224,250

State

Water

Implementation

Revenue

Fund

for

Texas,

Revenue,

2018

B,

5%,

4/15/49

15,000,000

18,722,250

West

Travis

County

Public

Utility

Agency

,

Revenue

,

2017

,

Refunding

,

BAM

Insured

,

4

%

,

8/15/41

......................................................

5,000,000

5,597,800

1,112,357,431

Utah

1.4%

Central

Utah

Water

Conservancy

District

,

Revenue,

2017

B,

Refunding,

4%,

10/01/37

..............................

2,600,000

3,026,530

Revenue,

2017

B,

Refunding,

4%,

10/01/38

..............................

10,000,000

11,574,500

County

of

Utah

,

IHC

Health

Services,

Inc.

Obligated

Group

,

Revenue

,

2020

A

,

4

%

,

5/15/43

.........................................................

2,750,000

3,174,930

Jordan

Valley

Water

Conservancy

District

,

Revenue,

2011B,

Pre-Refunded,

5%,

10/01/41

............................

15,000,000

15,298,200

Revenue,

2017

B,

Refunding,

4%,

10/01/41

..............................

6,000,000

6,715,140

Salt

Lake

City

Corp.

,

Airport,

Revenue,

2017A,

5%,

7/01/42

..................................

15,000,000

17,212,200

Airport,

Revenue,

2017A,

5%,

7/01/47

..................................

10,000,000

11,386,900

Airport,

Revenue,

2018A,

5%,

7/01/48

..................................

9,400,000

10,862,828

Airport,

Revenue,

2018A,

5.25%,

7/01/48

................................

10,000,000

11,727,900

University

of

Utah

(The)

,

Revenue,

2013

A,

Pre-Refunded,

5%,

8/01/43

............................

21,975,000

24,815,049

Revenue,

2018A,

5%,

8/01/44

........................................

12,240,000

14,814,806

Utah

Municipal

Power

Agency

,

Revenue

,

2016

B

,

5

%

,

7/01/38

..................

10,000,000

11,970,900

Weber

Basin

Water

Conservancy

District

,

Revenue

,

2013B

,

5

%

,

4/01/39

..........

7,180,000

7,882,204

150,462,087

Vermont

0.2%

Vermont

Educational

&

Health

Buildings

Financing

Agency

,

President

&

Fellows

of

Middlebury

College,

Revenue,

2020,

Refunding,

5%,

11/01/49

4,000,000

4,978,280

President

&

Fellows

of

Middlebury

College,

Revenue,

2020,

Refunding,

4%,

11/01/50

5,000,000

5,701,250

University

of

Vermont

Health

Network

Obligated

Group,

Revenue,

2016A,

Refunding,

5%,

12/01/36

...................................................

5,000,000

5,780,450

16,459,980

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Virginia

1.3%

Chesterfield

County

Economic

Development

Authority

,

Bon

Secours

Health

System,

Inc.

Obligated

Group

,

Revenue

,

2008

C-2

,

Pre-Refunded

,

AGMC

Insured

,

5

%

,

11/01/42

........................................................

$

8,000,000

$

8,000,000

Hampton

Roads

Sanitation

District

,

Revenue

,

2018

A

,

Pre-Refunded

,

5

%

,

10/01/47

..

14,575,000

19,059,436

Hampton

Roads

Transportation

Accountability

Commission

,

Revenue,

Senior

Lien,

2018

A,

5%,

7/01/42

..............................

25,000,000

30,566,500

Revenue,

Senior

Lien,

2020

A,

5.25%,

7/01/60

............................

25,000,000

31,386,500

Virginia

Commonwealth

Transportation

Board

,

Revenue

,

2019

,

4

%

,

5/15/41

.......

13,585,000

15,884,261

Virginia

Housing

Development

Authority

,

Revenue

,

2019

E

,

3.1

%

,

12/01/45

........

6,760,000

7,151,539

Virginia

Resources

Authority

,

Revenue

,

2012

A

,

5

%

,

11/01/39

..................

70,000

75,867

Virginia

Small

Business

Financing

Authority

,

95

Express

Lanes

LLC,

Revenue,

Senior

Lien,

2012,

5%,

1/01/40

.............

14,535,000

15,027,301

95

Express

Lanes

LLC,

Revenue,

Senior

Lien,

2019,

5%,

1/01/44

.............

7,500,000

7,740,600

95

Express

Lanes

LLC,

Revenue,

Senior

Lien,

2019,

5%,

7/01/49

.............

3,000,000

3,092,640

National

Senior

Campuses,

Inc.

Obligated

Group,

Revenue,

2020A,

Refunding,

4%,

1/01/45

........................................................

4,000,000

4,283,480

142,268,124

Washington

2.8%

City

of

Seattle

,

Municipal

Light

&

Power,

Revenue,

2017

C,

Refunding,

4%,

9/01/36

............

22,170,000

25,686,827

Municipal

Light

&

Power,

Revenue,

2018

A,

4%,

1/01/42

.....................

10,855,000

12,392,828

County

of

King

,

Sewer,

Revenue,

2017,

Refunding,

5%,

7/01/49

...........................

12,000,000

14,392,680

Sewer,

Revenue,

2020

A,

Refunding,

4%,

1/01/47

.........................

5,000,000

5,845,650

King

County

Housing

Authority

,

Revenue,

2019,

Refunding,

3%,

11/01/39

................................

10,000,000

10,532,400

Revenue,

2020,

Refunding,

3%,

6/01/40

.................................

5,000,000

5,227,550

Klickitat

County

Public

Utility

District

No.

1

,

Revenue

,

2019

A

,

Refunding

,

AGMC

Insured

,

3

%

,

12/01/41

..............................................

3,030,000

3,176,713

NJB

Properties

,

Revenue

,

2006A

,

5

%

,

12/01/36

............................

5,000

5,017

North

Thurston

Public

Schools

,

GO,

2020,

4%,

12/01/34

.............................................

5,000,000

6,153,600

GO,

2020,

4%,

12/01/35

.............................................

5,000,000

6,125,650

GO,

2020,

4%,

12/01/36

.............................................

6,000,000

7,300,140

Port

of

Seattle

,

Revenue,

2018A,

5%,

5/01/43

........................................

15,500,000

17,686,275

Revenue,

2019,

4%,

4/01/44

.........................................

4,000,000

4,263,160

State

of

Washington

,

GO,

2019

D,

5%,

6/01/43

............................................

11,040,000

13,820,314

GO,

2019

D,

5%,

6/01/44

............................................

11,595,000

14,479,720

GO,

Senior

Lien,

2012C,

Refunding,

5%,

6/01/33

..........................

5,000,000

5,135,250

University

of

Washington

,

Revenue

,

2018

,

5

%

,

4/01/48

.......................

29,450,000

35,170,073

Washington

Health

Care

Facilities

Authority

,

Revenue,

2014D,

Pre-Refunded,

5%,

10/01/41

...........................

150,000

175,792

Revenue,

2014D,

5%,

10/01/41

.......................................

9,850,000

11,192,654

Fred

Hutchinson

Cancer

Research

Center,

Revenue,

2017

A,

5%,

1/01/47

.......

10,000,000

11,497,400

Multicare

Health

System

Obligated

Group,

Revenue,

2017

B,

Refunding,

4%,

8/15/41

25,000,000

27,817,750

Providence

St.

Joseph

Health

Obligated

Group,

Revenue,

2012A,

5%,

10/01/42

...

10,175,000

10,703,998

Seattle

Cancer

Care

Alliance

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

9/01/45

........................................................

2,610,000

2,864,736

Seattle

Cancer

Care

Alliance

Obligated

Group,

Revenue,

2020,

Refunding,

5%,

9/01/45

........................................................

2,105,000

2,549,997

Seattle

Cancer

Care

Alliance

Obligated

Group,

Revenue,

2020,

Refunding,

4%,

9/01/50

........................................................

5,000,000

5,456,000

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

Washington

(continued)

Washington

Health

Care

Facilities

Authority,

(continued)

Seattle

Cancer

Care

Alliance

Obligated

Group,

Revenue,

2020,

Refunding,

5%,

9/01/50

........................................................

$

3,000,000

$

3,613,530

Seattle

Children's

Hospital

Obligated

Group,

Revenue,

2015B,

Refunding,

5%,

10/01/38

.......................................................

15,000,000

17,277,300

Washington

Higher

Education

Facilities

Authority

,

Seattle

Pacific

University

,

Revenue

,

2020

A

,

Refunding

,

5

%

,

10/01/42

......................................

3,800,000

4,457,932

Washington

State

Convention

Center

Public

Facilities

District

,

Revenue

,

2018

,

5

%

,

7/01/43

.........................................................

13,870,000

15,545,219

300,546,155

West

Virginia

0.9%

Berkeley

County

Public

Service

Sewer

District

,

Revenue

,

2016B

,

Refunding

,

BAM

Insured

,

5

%

,

6/01/36

...............................................

1,000,000

1,195,740

West

Virginia

Hospital

Finance

Authority

,

Cabell

Huntington

Hospital

Obligated

Group,

Revenue,

2018

A,

Refunding,

5%,

1/01/43

........................................................

13,250,000

15,453,740

Charleston

Area

Medical

Center,

Inc.

Obligated

Group,

Revenue,

2019A,

Refunding,

5%,

9/01/38

....................................................

3,040,000

3,551,510

West

Virginia

United

Health

System

Obligated

Group,

Revenue,

2017

A,

5%,

6/01/42

7,000,000

8,220,940

West

Virginia

United

Health

System

Obligated

Group,

Revenue,

2017

A,

5%,

6/01/47

10,190,000

11,874,917

West

Virginia

United

Health

System

Obligated

Group,

Revenue,

2018

A,

5%,

6/01/52

20,700,000

24,418,962

West

Virginia

University

,

Revenue

,

2014A

,

Pre-Refunded

,

5

%

,

10/01/44

..........

21,800,000

25,780,898

West

Virginia

Water

Development

Authority

,

Revenue,

2016

A,

Refunding,

5%,

10/01/36

..............................

5,000,000

6,073,900

Revenue,

2016

A,

Refunding,

5%,

10/01/45

..............................

5,435,000

6,485,966

103,056,573

Wisconsin

1.2%

Ashwaubenon

Community

Development

Authority

,

County

of

Brown,

Revenue,

2019,

Zero

Cpn.,

6/01/49

.......................

16,185,000

5,638,368

County

of

Brown,

Revenue,

2019,

Zero

Cpn.,

6/01/54

.......................

53,000,000

14,647,080

City

of

Superior

,

DTE

Electric

Co.

,

Revenue

,

E-1991

,

Refunding

,

NATL

Insured

,

6.9

%

,

8/01/21

.........................................................

3,000,000

3,145,710

Public

Finance

Authority

,

ACTS

Retirement-Life

Communities,

Inc.

Obligated

Group,

Revenue,

2020A,

5%,

11/15/41

.......................................................

1,205,000

1,412,236

Blue

Ridge

Healthcare

Obligated

Group,

Revenue,

2020

A,

Refunding,

3%,

1/01/50

2,185,000

2,092,094

Renown

Regional

Medical

Center,

Revenue,

2020A,

Refunding,

4%,

6/01/45

.....

14,000,000

15,544,200

c

Wisconsin

Center

District

,

Revenue,

Junior

Lien

,

2020D

,

Zero

Cpn.,

12/15/45

......

90,000,000

35,069,400

Wisconsin

Health

&

Educational

Facilities

Authority

,

Ascension

Health

Credit

Group,

Revenue,

2013

B-2,

4%,

11/15/43

.............

10,000,000

11,358,100

Children's

Hospital

of

Wisconsin

Obligated

Group,

Revenue,

2017,

Refunding,

4%,

8/15/42

........................................................

15,000,000

16,641,750

Marshfield

Clinic

Health

System

Obligated

Group,

Revenue,

2017

C,

Refunding,

5%,

2/15/47

........................................................

20,000,000

22,549,600

Thedacare,

Inc.

Obligated

Group,

Revenue,

2019,

Refunding,

4%,

12/15/37

......

5,135,000

5,893,902

133,992,440

Wyoming

0.1%

Wyoming

Community

Development

Authority

,

Revenue

,

2018

1

,

Refunding

,

3.65

%

,

12/01/33

........................................................

3,280,000

3,480,638

Wyoming

Municipal

Power

Agency,

Inc.

,

Revenue

,

2017

A

,

Refunding

,

BAM

Insured

,

5

%

,

1/01/42

......................................................

7,000,000

8,244,180

11,724,818

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

s

See

Abbreviations

on

page

52

.

a

a

Principal

Amount

a

Value

a

a

a

a

a

Municipal

Bonds

(continued)

U.S.

Territories

4.1%

District

of

Columbia

3.6%

District

of

Columbia

,

GO,

2019

A,

5%,

10/15/44

...........................................

$

25,000,000

$

31,230,250

Revenue,

2006

B-1,

BHAC,

FGIC

Insured,

5%,

2/01/26

.....................

9,950,000

9,972,188

Revenue,

2006

B-1,

BHAC,

FGIC

Insured,

5%,

2/01/24

.....................

12,120,000

12,147,997

Revenue,

2006

B-1,

BHAC,

FGIC

Insured,

5%,

2/01/25

.....................

7,000,000

7,015,890

Association

of

American

Medical

Colleges,

Revenue,

2011

B,

Pre-Refunded,

5.25%,

10/01/41

.......................................................

15,000,000

15,687,750

Catholic

University

of

America

(The),

Revenue,

2017

B,

5%,

10/01/42

..........

20,660,000

23,296,009

Catholic

University

of

America

(The),

Revenue,

2017

B,

5%,

10/01/47

..........

24,985,000

27,961,213

Catholic

University

of

America

(The),

Revenue,

2018,

Refunding,

5%,

10/01/43

...

4,000,000

4,566,880

Children's

National

Medical

Center

Obligated

Group,

Revenue,

2015,

Refunding,

5%,

7/15/40

........................................................

6,830,000

7,833,873

Georgetown

University

(The),

Revenue,

2007

A,

Pre-Refunded,

AMBAC

Insured,

5%,

4/01/32

........................................................

15,370,000

15,672,328

Income

Tax,

Revenue,

2019A,

4%,

3/01/44

..............................

10,000,000

11,671,100

International

School

Obligated

Group,

Revenue,

2019,

5%,

7/01/49

............

2,275,000

2,562,606

Tobacco

Settlement

Financing

Corp.,

Revenue,

2001,

6.5%,

5/15/33

...........

16,630,000

18,229,640

Water

&

Sewer

Authority,

Revenue,

Senior

Lien,

2018

A,

5%,

10/01/49

..........

25,000,000

30,580,500

Water

&

Sewer

Authority,

Revenue,

Sub.

Lien,

2019

A,

5%,

10/01/44

...........

7,350,000

9,365,150

Metropolitan

Washington

Airports

Authority

,

Revenue,

2019A,

Refunding,

5%,

10/01/44

..............................

17,500,000

20,921,250

Revenue,

2019A,

Refunding,

5%,

10/01/49

..............................

15,000,000

17,817,300

Dulles

Toll

Road,

Revenue,

Second

Lien,

2009C,

AGMC

Insured,

6.5%,

10/01/41

..

25,000,000

31,238,250

Dulles

Toll

Road,

Revenue,

Sub.

Lien,

2019

B,

Refunding,

4%,

10/01/49

........

13,555,000

14,793,521

Washington

Convention

&

Sports

Authority

,

Tax

Allocation,

Senior

Lien

,

2010-A

,

5

%

,

10/01/40

........................................................

16,415,000

16,429,117

Washington

Metropolitan

Area

Transit

Authority

,

Revenue,

2020A,

4%,

7/15/45

........................................

10,000,000

11,517,300

Revenue,

2020A,

5%,

7/15/45

........................................

40,000,000

50,532,400

391,042,512

Puerto

Rico

0.5%

Commonwealth

of

Puerto

Rico

,

GO

,

AGMC

Insured

,

5.5

%

,

7/01/29

..............

5,295,000

6,052,132

Puerto

Rico

Electric

Power

Authority

,

d

Revenue,

2012A-RSA-1

2012A,

5%,

7/01/42

.............................

18,925,000

13,152,875

Revenue,

VV,

Refunding,

NATL

Insured,

5.25%,

7/01/32

....................

1,485,000

1,547,459

d

Revenue,

XX-RSA-1,

5.25%,

7/01/40

...................................

15,000,000

10,443,750

Puerto

Rico

Highway

&

Transportation

Authority

,

Revenue,

CC,

Refunding,

AGMC

Insured,

5.25%,

7/01/36

...................

10,970,000

12,671,337

Revenue,

L,

Refunding,

AGMC

Insured,

5.25%,

7/01/41

.....................

12,135,000

13,925,641

57,793,194

Total

U.S.

Territories

....................................................................

448,835,706

Total

Municipal

Bonds

(Cost

$10,019,138,467)

..................................

10,819,431,591

a

a

a

a

a

Total

Investments

(Cost

$10,019,138,467)

99.4%

................................

$10,819,431,591

Other

Assets,

less

Liabilities

0.6%

.............................................

62,648,841

Net

Assets

100.0%

...........................................................

$10,882,080,432

Franklin

Federal

Tax-Free

Income

Fund

Schedule

of

Investments

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

`

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

October

31,

2020,

the

aggregate

value

of

these

securities

was

$27,374,225,

representing

0.3%

of

net

assets.

b

The

maturity

date

shown

represents

the

mandatory

put

date.

c

Security

purchased

on

a

when-issued

basis.

See

Note

1(b).

d

See

Note

7

regarding

defaulted

securities.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

October

31,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Franklin

Federal

Tax-

Free

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$10,019,138,467

Value

-

Unaffiliated

issuers

..................................................................

$10,819,431,591

Cash

....................................................................................

3,223,075

Receivables:

Capital

shares

sold

........................................................................

5,671,655

Interest

.................................................................................

124,448,499

Other

assets

..............................................................................

3,815

Total

assets

..........................................................................

10,952,778,635

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

42,143,619

Capital

shares

redeemed

...................................................................

18,276,905

Management

fees

.........................................................................

4,069,657

Distribution

fees

..........................................................................

1,208,611

Transfer

agent

fees

........................................................................

874,042

Distributions

to

shareholders

.................................................................

3,482,020

Accrued

expenses

and

other

liabilities

...........................................................

643,349

Total

liabilities

.........................................................................

70,698,203

Net

assets,

at

value

.................................................................

$10,882,080,432

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$10,519,640,615

Total

distributable

earnings

(losses)

.............................................................

362,439,817

Net

assets,

at

value

.................................................................

$10,882,080,432

Franklin

Federal

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

October

31,

2020

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

Franklin

Federal

Tax-

Free

Income

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$1,492,732,394

Shares

outstanding

........................................................................

124,329,864

Net

asset

value

per

share

a

..................................................................

$12.01

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$12.48

Class

A1:

Net

assets,

at

value

.......................................................................

$6,936,790,582

Shares

outstanding

........................................................................

577,732,856

Net

asset

value

per

share

a

..................................................................

$12.01

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

96.25%)

................................

$12.48

Class

C:

Net

assets,

at

value

.......................................................................

$565,848,365

Shares

outstanding

........................................................................

47,161,056

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$12.00

Class

R6:

Net

assets,

at

value

.......................................................................

$237,044,112

Shares

outstanding

........................................................................

19,727,997

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.02

Advisor

Class:

Net

assets,

at

value

.......................................................................

$1,649,664,979

Shares

outstanding

........................................................................

137,248,765

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.02

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Federal

Tax-Free

Income

Fund

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

October

31,

2020

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Franklin

Federal

Tax-

Free

Income

Fund

Investment

income:

Interest:

Unaffiliated

issuers

........................................................................

$197,800,204

Expenses:

Management

fees

(Note

3

a

)

...................................................................

24,333,234

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

1,680,314

    Class

A1

...............................................................................

3,538,207

    Class

C

................................................................................

2,020,706

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

421,310

    Class

A1

...............................................................................

2,228,790

    Class

C

................................................................................

196,548

    Class

R6

...............................................................................

30,443

    Advisor

Class

............................................................................

510,884

Custodian

fees

(Note

4

)

......................................................................

37,993

Reports

to

shareholders

......................................................................

156,565

Registration

and

filing

fees

....................................................................

231,693

Professional

fees

...........................................................................

82,634

Trustees'

fees

and

expenses

..................................................................

61,918

Other

....................................................................................

206,524

Total

expenses

.........................................................................

35,737,763

Expense

reductions

(Note

4

)

...............................................................

(74,749)

Net

expenses

.........................................................................

35,663,014

Net

investment

income

................................................................

162,137,190

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

7,715,239

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

346,423,824

Net

realized

and

unrealized

gain

(loss)

............................................................

354,139,063

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$516,276,253

Franklin

Federal

Tax-Free

Income

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

Franklin

Federal

Tax-Free

Income

Fund

Six

Months

Ended

October

31,

2020

(unaudited)

Year

Ended

April

30,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$162,137,190

$329,536,495

Net

realized

gain

(loss)

.................................................

7,715,239

(40,968,607)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

346,423,824

(157,229,142)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

516,276,253

131,338,746

Distributions

to

shareholders:

Class

A

.............................................................

(18,757,617)

(25,392,441)

Class

A1

............................................................

(104,192,125)

(238,491,163)

Class

C

.............................................................

(7,454,278)

(19,532,457)

Class

R6

............................................................

(3,376,098)

(6,332,858)

Advisor

Class

........................................................

(24,687,740)

(39,603,208)

Total

distributions

to

shareholders

..........................................

(158,467,858)

(329,352,127)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

345,425,218

572,147,597

Class

A1

............................................................

(135,118,443)

(860,761,892)

Class

C

.............................................................

(115,298,901)

(173,859,799)

Class

R6

............................................................

33,579,331

23,364,313

Advisor

Class

........................................................

132,799,959

279,874,208

Total

capital

share

transactions

............................................

261,387,164

(159,235,573)

Net

increase

(decrease)

in

net

assets

...................................

619,195,559

(357,248,954)

Net

assets:

Beginning

of

period

.....................................................

10,262,884,873

10,620,133,827

End

of

period

..........................................................

$10,882,080,432

$10,262,884,873

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Federal

Tax-Free

Income

Fund (Fund)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

A1,

Class

C,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Fund's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Debt

securities

generally

trade

in

the

over-the-counter

(OTC)

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Securities

Purchased

on

a

When-Issued

Basis

The

Fund

purchases

securities

on

a

when-issued

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

c.

Income

Taxes

It

is the Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

October

31,

2020,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

Report

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Insurance

The

scheduled

payments

of

interest

and

principal

for

each

insured

municipal

security

in

the

Fund

are

insured

by

either

a

new

issue

insurance

policy

or

a

secondary

insurance

policy.

Depending

on

the

type

of

coverage,

premiums

for

insurance

are

either

added

to

the

cost

basis

of

the

security

or

paid

by

a

third

party.

Insurance

companies

typically

insure

municipal

bonds

that

tend

to

be

of

very

high

quality,

with

the

majority

of

underlying

municipal

bonds

rated

A

or

better.

However,

an

event

involving

an

insurer

could

have

an

adverse

effect

on

the

value

of

the

securities

insured

by

that

insurance

company.

There

can

be

no

assurance

the

insurer

will

be

able

to

fulfill

its

obligations

under

the

terms

of

the

policy.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Fund's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

October

31,

2020,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

Six

Months

Ended

October

31,

2020

Year

Ended

April

30,

2020

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

35,098,655

$423,185,298

59,617,714

$713,957,350

Shares

issued

in

reinvestment

of

distributions

..........

1,434,741

17,310,504

1,981,080

23,766,928

Shares

redeemed

...............................

(7,900,459)

(95,070,583)

(13,911,324)

(165,576,681)

Net

increase

(decrease)

..........................

28,632,937

$345,425,218

47,687,470

$572,147,597

Class

A1

Shares:

Shares

sold

...................................

10,390,813

$125,196,719

27,283,498

$326,563,361

Shares

issued

in

reinvestment

of

distributions

..........

7,633,050

92,083,834

17,709,613

212,584,460

Shares

redeemed

...............................

(29,255,867)

(352,398,996)

(117,728,402)

(1,399,909,713)

Net

increase

(decrease)

..........................

(11,232,004)

$(135,118,443)

(72,735,291)

$(860,761,892)

Class

C

Shares:

Shares

sold

...................................

4,083,704

$49,226,338

8,968,744

$107,603,111

Shares

issued

in

reinvestment

of

distributions

..........

569,526

6,865,172

1,476,907

17,715,916

Shares

redeemed

a

..............................

(14,194,204)

(171,390,411)

(25,012,960)

(299,178,826)

Net

increase

(decrease)

..........................

(9,540,974)

$(115,298,901)

(14,567,309)

$(173,859,799)

Class

R6

Shares:

Shares

sold

...................................

4,145,229

$49,983,056

6,018,228

$72,175,233

Shares

issued

in

reinvestment

of

distributions

..........

260,417

3,144,442

481,054

5,777,881

Shares

redeemed

...............................

(1,626,256)

(19,548,167)

(4,596,552)

(54,588,801)

Net

increase

(decrease)

..........................

2,779,390

$33,579,331

1,902,730

$23,364,313

Advisor

Class

Shares:

Shares

sold

...................................

23,528,276

$283,163,351

59,408,796

$705,459,688

Shares

issued

in

reinvestment

of

distributions

..........

1,795,819

21,693,356

2,781,167

33,398,085

Shares

redeemed

...............................

(14,262,960)

(172,056,748)

(38,321,983)

(458,983,565)

Net

increase

(decrease)

..........................

11,061,135

$132,799,959

23,867,980

$279,874,208

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Distributors,

Inc.

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

Report

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

month-end

net

assets

of

the

Fund

as

follows:

For

the

period

ended

October

31,

2020,

the

annualized

gross

effective

investment

management

fee

rate

was

0.446%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund’s

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

and

A1

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

and

A1

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

compensation

distribution

plan,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31. 

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.625%

Up

to

and

including

$100

million

0.500%

Over

$100

million,

up

to

and

including

$250

million

0.450%

Over

$250

million,

up

to

and

including

$7.5

billion

0.440%

Over

$7.5

billion,

up

to

and

including

$10

billion

0.430%

Over

$10

billion,

up

to

and

including

$12.5

billion

0.420%

Over

$12.5

billion,

up

to

and

including

$15

billion

0.400%

Over

$15

billion,

up

to

and

including

$17.5

billion

0.380%

Over

$17.5

billion,

up

to

and

including

$20

billion

0.360%

In

excess

of

$20

billion

Class

A

....................................................................................

0.25%

Class

A1

...................................................................................

0.10%

Class

C

....................................................................................

0.65%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$122,284

CDSC

retained

..............................................................................

$95,440

3.

Transactions

with

Affiliates

(continued)

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

50

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

October

31,

2020,

the

Fund

paid

transfer

agent

fees

of

$3,387,975,

of

which $1,546,926

was

retained

by

Investor

Services.

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

each

class

until

August

31,

2021.

Prior

to

September

1,

2019,

Investor

Services

had

voluntarily

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

did

not

exceed

0.02%.

g.

Interfund

Transactions

The

Fund

engaged

in

purchases

and

sales

of

investments

with

funds

or

other

accounts

that

have

common

investment

managers

(or

affiliated

investment

managers),

directors,

trustees

or

officers.

During

the

period

ended

October

31,

2020,

these

purchase

and

sale

transactions

aggregated

$252,747,588

and

$230,360,000,

respectively.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

October

31,

2020,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

April

30,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

October

31,

2020,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$216,588,821

Long

term

................................................................................

237,814,470

Total

capital

loss

carryforwards

...............................................................

$454,403,291

Cost

of

investments

..........................................................................

$10,019,138,467

Unrealized

appreciation

........................................................................

$831,081,002

Unrealized

depreciation

........................................................................

(30,787,878)

Net

unrealized

appreciation

(depreciation)

..........................................................

$800,293,124

3.

Transactions

with

Affiliates

(continued)

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

51

franklintempleton.com

Semiannual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

bond

discounts

and

premiums

and

bond

workout

expenditures.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

October

31,

2020,

aggregated

$1,616,200,410

and

$1,131,395,285,

respectively.

7.

Defaulted

Securities

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

October

31,

2020,

the

aggregate

value

of

these

securities

was

$23,596,625,

representing

0.2%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Statement

of

Investments.

8.

Concentration

of

Risk

Investing

in

Puerto

Rico

securities

may

expose

the Fund

to

heightened

risks

due

to

recent

adverse

economic

and

market

changes,

credit

downgrades

and

ongoing

restructuring

discussions.

Investments

in

these

securities

are

sensitive

to

interest

rate

changes

and

credit

risk

of

the

issuer

and

may

subject

the Fund

to

increased

market

volatility.

The

market

for

these

investments

may

be

limited,

which

may

make

them

difficult

to

buy

or

sell.

9.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matures

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

October

31,

2020,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

5.

Income

Taxes

(continued)

Franklin

Federal

Tax-Free

Income

Fund

Notes

to

Financial

Statements

(unaudited)

52

franklintempleton.com

Semiannual

Report

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

October

31,

2020,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

12.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

AGMC

Assured

Guaranty

Municipal

Corp.

AMBAC

American

Municipal

Bond

Assurance

Corp.

BAM

Build

America

Mutual

Assurance

Co.

BHAC

Berkshire

Hathaway

Assurance

Corp.

COP

Certificate

of

Participation

ETM

Escrowed

to

Maturity

FGIC

Financial

Guaranty

Insurance

Co..

FHA

Federal

Housing

Administration

GO

General

Obligation

NATL

National

Reinsurance

Corp.

PSF

Permanent

School

Fund

11.

Fair

Value

Measurements

(continued)

Franklin

Federal

Tax-Free

Income

Fund

Shareholder

Information

53

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

–

Funds

no

HLIM

Each

of

the

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Funds’

Board

of

Trustees

approved

the

appointment

of

the

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

as

the

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee

and

Product

Management

groups.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2020,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

during

the

period

December

1,

2018

to

December

31,

2019.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

At

the

same

time,

the

Program

Administrator

also

presented

the

Fund

Board

of

Trustees

an

update

on

liquidity

during

the

first

quarter

of

2020

in

relation

to

the

COVID-19

pandemic.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

Franklin

Federal

Tax-Free

Income

Fund

Shareholder

Information

54

franklintempleton.com

Semiannual

Report

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive

the

Fund’s

financial

reports

every

six

months

as

well

as

an

annual

updated

summary

prospectus

(prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

1116

S

12/20

©

2020

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Federal

Tax-Free

Income

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Templeton

Distributors,

Inc.

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

N/A

Item 5. Audit Committee

 

of Listed Registrants. N/A

Item 6. Schedule of Investments. N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A

Item 8.  Portfolio Managers of Closed-End Management Investment Companies. N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers. N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                            N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

Code of Ethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer

Section 906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FEDERAL TAX-FREE INCOME FUND

By __S\MATTHEW T. HINKLE_______________________ 

Matthew T. Hinkle

Chief Executive Officer – Finance and Administration

Date December 28, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By _S\MATTHEW T. HINKLE_______________________

Matthew T. Hinkle

Chief Executive Officer – Finance and Administration

Date December 28, 2020

By __S\GASTON GARDEY_________________________

Gaston Gardey

Chief Financial Officer and Chief Accounting Officer

Date December 28, 2020