N-CSR 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSR
 
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)
 
Alison Baur, 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: 4/30/23
 
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.   
Not Applicable
.
 
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Federal
Tax-Free
Income
Fund
April
30,
2023
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
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FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
After
posting
negative
gross
domestic
product
(GDP)
annualized
growth
rate
of
-0.6%
in
the
second
quarter
2022,
the
U.S.
economy
rebounded
with
3.2%
in
the
third
quarter
and
2.6%
in
the
fourth.
Moving
into
2023,
first
quarter
growth
slowed
to
1.1%,
but
domestic
demand
remained
strong.
Consumer
spending
held
up
well
over
the
period
under
review
bolstered
by
a
strong
U.S.
job
market.
The
unemployment
rate
hovered
near
50-year
lows,
reaching
3.4%
in
April
2023.
Inflation
remained
an
overhang
to
the
market
as
the
year-over-year
change
to
the
Consumer’s
Price
Index
(CPI)
reached
a
multidecade
high
of
9.1%
in
June
2022
before
moderating
to
4.9%
in
April
2023.
However,
core
CPI,
which
excludes
the
volatile
energy
and
food
prices,
stayed
elevated
at
5.6%
due
to
strong
increases
in
shelter
costs
over
the
previous
year.
After
abandoning
its
view
that
U.S.
inflation
pressures
seen
in
2021
and
early
2022
were
“transitory,”
the
U.S.
Federal
Reserve
(Fed)
continued
its
tightening
path
started
in
March
2022.
Over
the
period
under
review,
the
Fed
aggressively
raised
the
federal
funds
target
rate
at
a
pace
not
seen
since
the
1980s,
increasing
the
policy
rate
by
a
total
of
450
basis
points
(bps)
during
the
12-month
period,
including
four
75-bp
hikes
at
its
meetings
in
June,
July,
September
and
November
2022.
After
slowing
to
a
50-bp
hike
in
December
2022
and
after
slowing
its
rate
increases
to
25
bps
at
its
February
and
March
2023
meeting,
the
Fed
signaled
that
it
was
reaching
a
rate
that
was
restrictive
enough
to
bring
inflation
down
to
its
2.0%
target
and
create
a
slack
in
the
labor
market.
In
March
and
April
2023,
the
U.S.
regional
banking
system
showed
signs
of
stress.
This
complicated
the
Fed’s
plans
as
expected
tightening
of
credit
standards
have
the
potential
to
act
as
quasi-rate
hikes,
lowering
the
peak
fed
funds
rate
needed
to
achieve
the
Fed’s
goal.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+2.87%
total
return,
influenced
by
increased
investor
demand
so
far
in
2023
coupled
with
a
limited
supply
of
new
bonds.
1
Municipal
bond
fundamentals
remained
strong,
in
our
view,
due
to
prudent
fiscal
management
by
issuers.
Franklin
Federal
Tax-Free
Income
Fund’s
annual
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
team.
Municipal
bonds
provide
tax-free
income
and
offer
diversification
from
other
types
of
investments.
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
professionals
for
up-to-date
advice
on
their
holdings.
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
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Gregory
E.
Johnson
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
April
30,
2023,
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.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Franklin
Federal
Tax-Free
Income
Fund
3
Performance
Summary
5
Your
Fund’s
Expenses
8
Financial
Highlights
and
Schedule
of
Investments
9
Financial
Statements
47
Notes
to
Financial
Statements
51
Report
of
Independent
Registered
Public
Accounting
Firm
60
Tax
Information
61
Board
Members
and
Officers
62
Shareholder
Information
67
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Franklin
Federal
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Federal
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
April
30,
2023.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
investment-grade
municipal
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.97
on
April
30,
2022,
to
$10.72
on
April
30,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
33.8029
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
5
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.63%
based
on
an
annualization
of
April’s
2.7388
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.14
on
April
30,
2023.
An
investor
in
the
2023
maximum
federal
personal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.44%
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
.
*Does
not
include
cash
and
cash
equivalents.
Municipal
Bond
Market
Overview
During
the
12
months
ended
April
30,
2023,
the
U.S.
Federal
Reserve
(Fed)
continued
to
tighten
monetary
policy
as
it
tried
to
get
inflation
under
control
without
tipping
the
economy
into
recession.
After
several
outsized
hikes
of
75
basis
points
(bps),
the
Fed
slowed
the
pace
of
tightening
to
50
bps
in
December,
followed
by
25-bp
increases
in
February
and
March
2023.
This
last
decision
came
in
the
face
of
regional
banking
industry
turmoil,
though
fears
of
widespread
contagion
quickly
abated.
The
municipal
bond
(muni)
market
witnessed
a
challenging
year
in
2022,
primarily
driven
by
the
Fed’s
monetary
policy
tightening.
High
levels
of
uncertainty
led
to
significant
outflows
from
muni
retail
vehicles.
The
first
two
months
of
2023
saw
a
reversal
of
this
trend
as
investors
looked
for
high-quality
alternatives,
but
as
market
volatility
returned
flows
turned
negative.
Issuance
continued
to
be
limited
with
2023
new
issuance
lagging
the
year
prior
by
over
25%
across
the
first
four
months.
Credit
fundamentals
remained
strong,
as
many
issuers
benefited
from
the
post-COVID
economic
recovery
and
federal
aid.
Portfolio
Composition
4/30/23
%
of
Total
Investments*
Transportation
18.54%
Health
Care
17.71%
Utilities
11.40%
Housing
10.66%
Industrial
Dev.
Revenue
and
Pollution
Control
9.88%
Special
Tax
8.97%
Lease
6.05%
Education
5.89%
Local
5.10%
State
General
Obligation
2.85%
Refunded
2.59%
Other
Revenue
Bonds
0.36%
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
14
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Annual
Report
Over
the
last
12
months,
U.S.
fixed
income
sectors
saw
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+2.66%
total
return.
3
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+2.87%
total
return,
while
U.S.
Treasuries,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-0.93%
total
return.
3
Investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Investment
Grade
Index,
posted
a
+0.68%
total
return.
3
Investment
Strategy
We
select
securities
that
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.
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
April
30,
2023,
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.
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.
Performance
Summary
as
of
April
30,
2023
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
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
4/30/23
1
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
2
Average
Annual
Total
Return
3
–
A
4,5
1-Year
+0.87%
-2.91%
5-Year
+6.60%
+0.51%
10-Year
+17.85%
+1.27%
Advisor
1-Year
+1.12%
+1.12%
5-Year
+7.87%
+1.53%
10-Year
+19.91%
+1.83%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.63%
4.44%
3.30%
5.57%
Advisor
2.94%
4.97%
3.67%
6.20%
See
page
7
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
6
franklintempleton.com
Annual
Report
See
page
7
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(4/30/13–4/30/23)
Advisor
Class
(4/30/13–4/30/23)
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
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.
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
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.
4.
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.
5.
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%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
April
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
4/30/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2023
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
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.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
10.
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
(5/1/22–4/30/23)
Share
Class
Net
Investment
Income
A
$0.338029
A1
$0.353996
C
$0.295480
R6
$0.369475
Advisor
$0.364669
Total
Annual
Operating
Expenses
10
Share
Class
A
0.78%
Advisor
0.53%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
8
franklintempleton.com
Annual
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.
l
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
181/365
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
11/1/22
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
Ending
Account
Value
4/30/23
Expenses
Paid
During
Period
11/1/22–4/30/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,085.30
$4.09
$1,020.88
$3.96
0.79%
A1
$1,000
$1,086.10
$3.31
$1,021.63
$3.20
0.64%
C
$1,000
$1,083.30
$6.14
$1,018.90
$5.95
1.19%
R6
$1,000
$1,086.80
$2.60
$1,022.30
$2.52
0.50%
Advisor
$1,000
$1,086.60
$2.78
$1,022.13
$2.70
0.54%
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
Year
Ended
April
30,
Year
Ended
April
30,
2019
a
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.97
$12.31
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.34
0.31
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(1.35)
0.71
(0.22)
0.19
Total
from
investment
operations
....................
0.09
(1.04)
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
..........................
(0.34)
(0.30)
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
year
.......................
$10.72
$10.97
$12.31
$11.60
$11.82
Total
return
d
...................................
0.87%
(8.62)%
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
.....................................
0.79%
g
0.77%
g
0.78%
g
0.77%
0.78%
Net
investment
income
...........................
3.21%
2.56%
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,940,290
$1,916,791
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
............................
28.31%
22.08%
16.18%
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%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.97
$12.31
$11.60
$11.82
$11.68
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.36
0.33
0.35
0.37
0.42
Net
realized
and
unrealized
gains
(losses)
...........
(0.26)
(1.35)
0.70
(0.22)
0.16
Total
from
investment
operations
....................
0.10
(1.02)
1.05
0.15
0.58
Less
distributions
from:
Net
investment
income
..........................
(0.35)
(0.32)
(0.34)
(0.37)
(0.44)
Net
asset
value,
end
of
year
.......................
$10.72
$10.97
$12.31
$11.60
$11.82
Total
return
c
...................................
1.02%
(8.48)%
9.17%
1.22%
5.06%
Ratios
to
average
net
assets
Expenses
d
....................................
0.64%
e
0.63%
e
0.63%
e
0.62%
0.63%
Net
investment
income
...........................
3.35%
2.71%
2.89%
3.11%
3.60%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$5,215,087
$6,256,503
$6,919,289
$6,833,018
$7,821,881
Portfolio
turnover
rate
............................
28.31%
22.08%
16.18%
20.23%
14.58%
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.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
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.
Annual
Report
11
a
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.96
$12.30
$11.59
$11.81
$11.68
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.30
0.26
0.29
0.31
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(1.34)
0.70
(0.22)
0.15
Total
from
investment
operations
....................
0.05
(1.08)
0.99
0.09
0.50
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.26)
(0.28)
(0.31)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.71
$10.96
$12.30
$11.59
$11.81
Total
return
c
...................................
0.47%
(8.99)%
8.58%
0.67%
4.39%
Ratios
to
average
net
assets
Expenses
d
....................................
1.19%
e
1.18%
e
1.18%
e
1.17%
1.18%
Net
investment
income
...........................
2.79%
2.15%
2.35%
2.56%
3.05%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$246,760
$340,772
$543,196
$657,344
$841,909
Portfolio
turnover
rate
............................
28.31%
22.08%
16.18%
20.23%
14.58%
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.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.98
$12.32
$11.61
$11.83
$11.69
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.37
0.35
0.37
0.39
0.44
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(1.35)
0.70
(0.22)
0.15
Total
from
investment
operations
....................
0.12
(1.00)
1.07
0.17
0.59
Less
distributions
from:
Net
investment
income
..........................
(0.37)
(0.34)
(0.36)
(0.39)
(0.45)
Net
asset
value,
end
of
year
.......................
$10.73
$10.98
$12.32
$11.61
$11.83
Total
return
....................................
1.17%
(8.35)%
9.31%
1.37%
5.19%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
0.50%
0.48%
0.49%
0.49%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
c
..............................
0.49%
0.48%
d
0.49%
d
0.49%
d
0.49%
d
Net
investment
income
...........................
3.51%
2.88%
3.00%
3.24%
3.74%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$952,887
$761,716
$294,727
$196,774
$177,983
Portfolio
turnover
rate
............................
28.31%
22.08%
16.18%
20.23%
14.58%
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
d
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.
Annual
Report
13
a
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.98
$12.32
$11.61
$11.83
$11.69
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.37
0.34
0.36
0.38
0.43
Net
realized
and
unrealized
gains
(losses)
...........
(0.26)
(1.35)
0.71
(0.22)
0.16
Total
from
investment
operations
....................
0.11
(1.01)
1.07
0.16
0.59
Less
distributions
from:
Net
investment
income
..........................
(0.36)
(0.33)
(0.36)
(0.38)
(0.45)
Net
asset
value,
end
of
year
.......................
$10.73
$10.98
$12.32
$11.61
$11.83
Total
return
....................................
1.12%
(8.39)%
9.27%
1.33%
5.15%
Ratios
to
average
net
assets
Expenses
c
.....................................
0.54%
d
0.52%
d
0.53%
d
0.52%
0.53%
Net
investment
income
...........................
3.44%
2.80%
2.98%
3.21%
3.70%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$998,541
$1,383,620
$1,829,553
$1,465,542
$1,210,861
Portfolio
turnover
rate
............................
28.31%
22.08%
16.18%
20.23%
14.58%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments,
April
30,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Shares
a
Value
a
Management
Investment
Companies
0.0%
†
Capital
Markets
0.0%
†
a
Franklin
Municipal
Green
Bond
ETF
.....................................
83,000
$
1,981,210
Total
Management
Investment
Companies
(Cost
$2,255,733)
.....................
1,981,210
Principal
Amount
a
a
a
a
Corporate
Bonds
0.4%
Software
0.4%
b
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
35,660,000
36,095,986
Total
Corporate
Bonds
(Cost
$35,660,000)
......................................
36,095,986
c
Senior
Floating
Rate
Interests
0.3%
Real
Estate
Management
&
Development
0.1%
b,d,e
TBG
Hillcrest
Senior
II
LP
,
Delayed
Draw
Term
Loan
,
5.861
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/01/38
...................................................
8,146,112
8,322,094
Residential
REITs
0.2%
b,d,e
Centennial
Gardens
LP
,
Delayed
Draw
Term
Loan
,
5.579
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/08/24
...................................................
16,317,314
16,640,440
Total
Senior
Floating
Rate
Interests
(Cost
$24,463,426)
..........................
24,962,534
Municipal
Bonds
97.6%
Alabama
1.9%
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
17,446,710
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
10,000,000
10,223,660
f
Black
Belt
Energy
Gas
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/26
...........................
26,090,000
26,023,011
Revenue,
2022
B-1,
Mandatory
Put,
4%,
10/01/27
.........................
32,950,000
32,829,831
Revenue,
2022
C-1,
Mandatory
Put,
5.25%,
6/01/29
........................
12,845,000
13,652,391
Revenue,
2022
F,
Mandatory
Put,
5.5%,
12/01/28
.........................
24,715,000
26,323,712
Chilton
County
Health
Care
Authority
,
County
of
Chilton
Sales
Tax
,
Revenue
,
2015
A
,
5
%
,
11/01/40
.....................................................
8,425,000
8,543,317
g
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
13,900,000
12,137,352
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/45
..............
3,500,000
3,352,139
Jacksonville
Public
Educational
Building
Authority
,
Jacksonville
State
University,
Revenue,
2023
A,
AGMC
Insured,
5.25%,
8/01/53
...
8,000,000
8,572,782
Jacksonville
State
University,
Revenue,
2023
A,
AGMC
Insured,
5.5%,
8/01/58
....
2,000,000
2,170,990
f
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/31
...........................
1,000,000
992,578
Revenue,
2022
A-1,
Mandatory
Put,
5.5%,
12/01/29
........................
12,850,000
13,890,293
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
5,198,161
181,356,927
Alaska
0.4%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
16,519,317
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
13,230,172
Northern
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien,
2021
A,
1,
Refunding,
4%,
6/01/50
...................
3,250,000
2,876,142
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
0.5%,
6/01/31
................
160,000
159,639
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
4%,
6/01/50
..................
2,000,000
1,997,232
34,782,502
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
2.4%
Arizona
Industrial
Development
Authority
,
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
5%,
7/01/32
.............
$
205,000
$
212,502
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
5%,
7/01/33
.............
220,000
227,692
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/34
.............
230,000
224,548
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/35
.............
235,000
226,393
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/36
.............
220,000
208,367
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/41
.............
720,000
641,181
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/51
.............
550,000
451,321
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/61
.............
6,050,000
4,750,560
Leman
Academy
of
Excellence
Obligated
Group,
Revenue,
2022
A,
Refunding,
4.5%,
7/01/54
........................................................
10,000,000
8,938,562
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
9,000,000
9,328,950
f
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2022-2
,
Mandatory
Put
,
5
%
,
9/01/27
..................................................
9,000,000
9,380,625
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
15,446,334
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
24,998,957
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/49
........................
5,000,000
5,147,974
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
14,985,000
14,233,510
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
8,237,714
Glendale
Municipal
Property
Corp.
,
City
of
Glendale
Excise
Tax
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.............................................
15,500,000
15,510,785
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
E,
4%,
1/01/45
...............
10,000,000
9,595,840
Banner
Health
Obligated
Group,
Revenue,
2019
F,
4%,
1/01/45
...............
25,000,000
23,989,600
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
1/01/36
...
5,000,000
5,222,641
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
A,
Refunding,
3.6%,
2/01/40
.............
19,500,000
17,302,149
Southern
California
Edison
Co.,
Revenue,
2000
A,
Refunding,
2.4%,
6/01/35
.....
5,000,000
3,909,929
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue
,
2023
A
,
5
%
,
1/01/50
.........................................................
6,500,000
7,268,139
State
of
Arizona
,
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
.................
6,000,000
7,426,738
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
.................
5,000,000
6,309,127
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
.................
9,860,000
12,435,240
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
10,116,761
221,742,139
Arkansas
0.1%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
2020
B-1
,
Refunding
,
5
%
,
9/01/44
........................
6,100,000
6,223,748
California
7.2%
g
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
17,311,364
f
ARC70
II
TRUST
,
Revenue
,
2021-1
,
A
,
Mandatory
Put
,
4
%
,
12/01/37
............
11,360,000
9,595,330
f
California
Community
Choice
Financing
Authority
,
Revenue,
2022
A-1,
Mandatory
Put,
4%,
8/01/28
..........................
15,000,000
15,159,481
Revenue,
2023
A-1,
Mandatory
Put,
5%,
8/01/29
..........................
5,000,000
5,307,171
Revenue,
2023
C,
Mandatory
Put,
5.25%,
10/01/31
........................
43,250,000
45,181,701
g
California
Community
Housing
Agency
,
Aster
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
..........
22,400,000
18,495,852
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
....................................................
17,850,000
14,544,498
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
g
California
Community
Housing
Agency,
(continued)
K
Street
Flats,
Revenue,
144A,
2021
A-1,
3%,
2/01/57
......................
$
10,000,000
$
6,425,188
California
Statewide
Communities
Development
Authority
,
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5%,
8/15/42
........................................................
425,000
453,534
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.125%,
8/15/47
........................................................
620,000
664,466
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.25%,
8/15/52
........................................................
7,815,000
8,386,028
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.375%,
8/15/57
........................................................
12,495,000
13,473,488
g
CMFA
Special
Finance
Agency
,
Latitude33,
Revenue,
144A,
2021
A-1,
3%,
12/01/56
.......................
12,000,000
7,983,515
Solana
at
Grand,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
8/01/56
..........
5,300,000
4,370,787
g
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
4
%
,
8/01/58
.........................................................
26,500,000
20,473,373
g
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
3.25
%
,
2/01/57
............................................
27,500,000
18,443,598
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
3,752,056
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
9,976,517
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/39
...............................
7,500,000
3,721,010
g
CSCDA
Community
Improvement
Authority
,
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3.6%,
5/01/47
.......
10,000,000
7,913,687
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-2,
3.25%,
5/01/57
......
12,500,000
8,664,261
Acacia
on
Santa
Rosa
Creek,
Revenue,
Senior
Lien,
144A,
2021
A,
4%,
10/01/56
.
13,000,000
10,574,392
Crescent
(The),
Revenue,
Senior
Lien,
144A,
2022
A-2,
4.3%,
7/01/59
..........
13,700,000
11,484,917
Escondido
Portfolio,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/48
........
10,000,000
6,807,417
Jefferson
Platinum
Triangle
Apartments,
Revenue,
144A,
2021
A-1,
2.875%,
8/01/41
3,105,000
2,626,696
Monterey
Station
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
7/01/43
.
7,855,000
5,948,072
Park
Crossing
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
12/01/58
.
18,750,000
12,691,682
Vineyard
Garden
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
10/01/58
14,000,000
9,519,496
Waterscape
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3%,
9/01/56
......
1,670,000
1,098,817
Westgate
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/47
......
15,000,000
10,996,235
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
12/01/49
...
30,000,000
20,092,371
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-2,
4%,
12/01/58
...
25,000,000
18,733,978
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
9,000,000
9,188,718
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
15,475,000
17,428,696
Revenue,
2013
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
20,000,000
23,349,018
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2013
B
,
Refunding
,
5
%
,
7/01/31
.............................................
20,000,000
20,055,130
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
14,666,496
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/31
............................
2,055,000
1,564,978
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/32
............................
7,830,000
5,722,452
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/33
............................
7,660,000
5,366,144
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,116,850
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,114,322
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,394,674
COP,
2020,
Refunding,
4%,
9/15/28
....................................
2,095,000
2,088,525
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/36
......
20,000,000
11,216,740
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
...............................
39,805,000
41,147,961
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
10,693,663
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
50,000,000
49,512,120
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
San
Mateo
Union
High
School
District
,
GO,
2011
A,
Zero
Cpn.,
9/01/33
.......................................
$
6,065,000
$
5,691,395
GO,
2011
A,
Zero
Cpn.,
9/01/41
.......................................
20,000,000
19,479,936
Santa
Ana
Unified
School
District
,
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/35
...........................
10,000,000
6,331,250
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/36
...........................
18,865,000
11,277,593
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/37
...........................
10,000,000
5,657,288
h
Southern
California
Public
Power
Authority
,
Revenue
,
FRN
,
2007
B
,
4.695
%
,
(
3-month
USD
LIBOR
+
1.47
%
),
11/01/38
.......................................
6,000,000
5,355,889
State
of
California
,
GO
,
2002
,
NATL
Insured
,
5
%
,
10/01/32
....................
20,000
20,040
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/29
....................
10,000,000
8,188,565
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/30
....................
20,845,000
16,448,742
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/31
....................
20,000,000
15,169,286
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/32
....................
10,730,000
7,806,316
670,923,765
Colorado
2.9%
City
&
County
of
Denver
,
Airport
System,
Revenue,
1992
C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
3,811,593
Airport
System,
Revenue,
2013
B,
5.25%,
11/15/33
........................
16,405,000
16,567,751
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
..................
10,000,000
10,534,423
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
25,500,000
26,176,484
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/48
...............
26,000,000
27,007,734
Airport
System,
Revenue,
2022
D,
Refunding,
5.75%,
11/15/45
...............
10,000,000
11,360,711
Airport
System,
Revenue,
2022
D,
Refunding,
5%,
11/15/53
..................
10,000,000
10,478,565
Pledged
Excise
Tax,
Revenue,
2018
A-1,
5%,
8/01/48
......................
39,690,000
40,846,706
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/35
.................
2,000,000
1,216,750
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/36
.................
2,500,000
1,446,241
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/37
.................
2,455,000
1,339,184
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/38
.................
2,000,000
1,032,547
Colorado
Educational
&
Cultural
Facilities
Authority
,
James
Irwin
Educational
Foundation
Obligated
Group
,
Revenue
,
2022
,
5
%
,
9/01/62
...................
2,200,000
2,094,556
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/41
......
30,505,000
31,840,457
AdventHealth
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
12,000,000
12,538,354
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
13,000,000
11,790,520
CommonSpirit
Health
Obligated
Group,
Revenue,
2022
A,
5.25%,
11/01/52
......
10,500,000
11,047,644
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
4,930,000
4,040,539
Intermountain
Healthcare
Obligated
Group,
Revenue,
2019
B,
Refunding,
4%,
1/01/40
........................................................
10,000,000
10,022,827
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
898,933
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
3,000,000
2,533,918
Eagle
River
Water
&
Sanitation
District
,
Wastewater
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
.....................................................
1,250,000
1,239,150
g
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5.55
%
,
12/01/47
3,500,000
3,531,387
Hunters
Overlook
Metropolitan
District
No.
5
,
GO,
2019
A,
5%,
12/01/39
...........................................
750,000
718,786
GO,
2019
A,
5%,
12/01/49
...........................................
1,000,000
910,074
Park
Creek
Metropolitan
District
,
Westerly
Creek
District
Service
Area
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
.....................................
2,875,000
3,026,694
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
23,978,308
Regional
Transportation
District
,
Denver
Transit
Partners
LLC
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/15/39
.............................................
1,000,000
950,565
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Colorado
(continued)
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
$
500,000
$
403,984
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,150,000
904,801
274,290,186
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
2,187,211
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/38
..........
2,200,000
2,152,526
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
..........
6,000,000
5,706,099
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/41
...
5,000,000
4,740,662
University
of
Hartford
(The),
Revenue,
2022
P,
5.375%,
7/01/52
...............
6,000,000
5,919,521
State
of
Connecticut
,
Special
Tax
,
2020
A
,
4
%
,
5/01/39
.......................
1,650,000
1,669,961
22,375,980
Delaware
0.1%
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
1,066,642
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,376,734
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
1,002,849
Delaware
State
Economic
Development
Authority
,
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/41
..........
1,600,000
1,480,418
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/51
..........
3,300,000
2,846,088
7,772,731
Florida
9.3%
Alachua
County
Health
Facilities
Authority
,
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/40
...........................................
2,500,000
1,989,617
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/46
...........................................
1,750,000
1,293,255
Ave
Maria
Stewardship
Community
District
,
Special
Assessment
,
2022
A
,
Refunding
,
4
%
,
5/01/42
......................................................
5,020,000
4,273,855
Babcock
Ranch
Community
Independent
Special
District
,
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/40
................
1,840,000
1,650,466
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/50
................
1,500,000
1,238,424
Brevard
County
Health
Facilities
Authority
,
Health
First,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
4/01/39
......
5,000,000
5,059,004
Health
First,
Inc.
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
4/01/52
.....
10,000,000
10,462,908
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/31
......
1,500,000
1,572,794
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/32
......
1,100,000
1,149,110
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/35
......
1,000,000
1,024,217
Capital
Trust
Agency,
Inc.
,
g
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
22,800,000
18,955,079
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/31
.................
500,000
508,424
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/41
.................
325,000
311,328
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/51
.................
385,000
352,000
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/56
.................
485,000
432,725
g
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,000,000
1,355,779
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/39
.....................
5,000,000
4,993,083
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/40
.....................
5,825,000
5,740,123
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
16,863,349
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Centre
Lake
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/42
.................................
$
1,000,000
$
720,894
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,775,000
1,399,900
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/38
...................................................
1,105,000
1,029,179
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
...................................................
9,235,000
7,724,350
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
10,536,960
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
11,179,361
City
of
Fort
Myers
,
Utility
System
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
10/01/44
......
7,000,000
6,927,099
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/37
..........................
5,000,000
5,363,000
Utilities
System,
Revenue,
2019
A,
5%,
10/01/44
..........................
23,780,000
25,503,372
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
9,000,000
9,570,298
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/45
..
5,000,000
4,575,670
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
11/01/50
..
15,000,000
15,296,130
City
of
Lakeland
,
Lakeland
Regional
Health
Systems
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/15/45
.....................................................
12,300,000
12,314,504
City
of
Melbourne
,
Water
&
Sewer,
Revenue,
2000
A,
FGIC
Insured,
ETM,
Zero
Cpn.,
10/01/26
......
1,500,000
1,362,782
Water
&
Sewer,
Revenue,
2002
B,
Refunding,
NATL
Insured,
Zero
Cpn.,
10/01/26
.
4,500,000
4,052,742
City
of
Miami
Beach
,
Revenue,
2015
A,
5%,
9/01/40
........................................
11,000,000
11,305,518
Stormwater,
Revenue,
2015,
5%,
9/01/41
................................
10,000,000
10,217,172
City
of
Palmetto
,
Renaissance
Arts
and
Education,
Inc.
,
Revenue
,
2022
A
,
Refunding
,
5.25
%
,
6/01/52
...................................................
3,000,000
3,018,013
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
........................................................
4,730,000
3,466,380
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
9/01/56
.
10,150,000
7,170,714
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
5,000,000
4,790,721
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/47
........................................................
7,845,000
8,019,111
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
15,001,544
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
7/01/37
.........................................
5,000,000
5,124,009
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/35
............
755,000
468,566
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/36
............
800,000
468,876
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/37
............
800,000
441,859
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
13,956,854
County
of
Hillsborough
,
Wastewater
Impact
Fee
,
Revenue
,
2021
,
4
%
,
5/01/37
......
650,000
668,497
County
of
Lee
,
Airport
,
Revenue
,
2021
B
,
4
%
,
10/01/38
.......................
7,435,000
7,272,794
County
of
Miami-Dade
,
Aviation,
Revenue,
2014
B,
Refunding,
5%,
10/01/37
.......................
5,000,000
5,080,873
Aviation,
Revenue,
2019
A,
5%,
10/01/49
................................
11,000,000
11,318,681
Aviation,
Revenue,
2020
A,
Refunding,
4%,
10/01/41
.......................
4,950,000
4,887,644
Seaport
Department,
Revenue,
Senior
Lien,
2022
A,
Refunding,
5.25%,
10/01/52
..
6,000,000
6,414,712
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
7,000,000
7,254,152
Transit
System,
Revenue,
2018,
5%,
7/01/43
.............................
10,000,000
10,634,649
Transit
System,
Revenue,
2018,
4%,
7/01/47
.............................
5,000,000
4,819,508
Transit
System,
Revenue,
2020
A,
4%,
7/01/48
...........................
5,000,000
4,807,297
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Florida
(continued)
County
of
Miami-Dade,
(continued)
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/49
....................
$
27,500,000
$
26,674,406
County
of
Monroe
,
Airport,
Revenue,
2022,
5.25%,
10/01/47
................................
1,000,000
1,034,937
Airport,
Revenue,
2022,
5%,
10/01/52
..................................
1,500,000
1,513,735
County
of
Osceola
,
Transportation
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
10/01/49
...
4,500,000
4,567,218
Crystal
Cay
Community
Development
District
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
1,000,000
817,704
g
Downtown
Doral
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2018
,
5
%
,
12/15/48
.................................
4,000,000
3,801,194
g
Epperson
North
Community
Development
District
,
Special
Assessment
,
144A,
2018
A-1
,
5.5
%
,
11/01/39
................................................
1,500,000
1,528,172
Escambia
County
Health
Facilities
Authority
,
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
.
4,165,000
4,356,483
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/37
.
6,000,000
6,236,523
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/40
.
4,000,000
4,110,876
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
.
19,465,000
17,401,056
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
.
18,985,000
16,441,678
Florida
Development
Finance
Corp.
,
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/35
..........
325,000
311,026
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/45
..........
600,000
508,835
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/33
....................................................
1,350,000
1,406,100
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/39
....................................................
5,350,000
5,332,057
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/52
....................................................
7,000,000
6,396,207
Florida
Housing
Finance
Corp.
,
Revenue
,
2020-1
,
GNMA
Insured
,
2.75
%
,
7/01/50
...
1,430,000
1,157,319
Fort
Pierce
Utilities
Authority
,
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/23
....................
3,060,000
3,014,549
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
10/01/24
....................
2,560,000
2,437,933
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
4
%
,
10/01/49
..............
15,000,000
14,191,908
Halifax
Hospital
Medical
Center
,
Halifax
Hospital
Medical
Center
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/36
.................................
2,500,000
2,588,789
Heritage
Harbour
North
Community
Development
District
,
Special
Assessment
,
2014
,
5.125
%
,
5/01/45
...................................................
2,170,000
2,137,636
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/45
.............
1,515,000
1,496,494
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/50
.............
1,800,000
1,737,567
Hillsborough
County
Aviation
Authority
,
Revenue,
2015
A,
5%,
10/01/44
.......................................
5,000,000
5,061,785
Revenue,
2018
A,
5%,
10/01/48
.......................................
20,000,000
20,516,490
Revenue,
2018
E,
5%,
10/01/48
.......................................
5,000,000
5,153,372
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/50
.......................
6,500,000
5,968,812
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
3,758,133
Lee
County
Industrial
Development
Authority
,
Shell
Point
Obligated
Group
,
Revenue
,
2019
,
5
%
,
11/15/44
................................................
6,360,000
5,999,670
g
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
27,000,000
22,140,000
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation,
2015
A,
Refunding,
AGMC
Insured,
5%,
2/01/40
...............
5,000,000
4,977,199
Tax
Allocation,
2015
A
2015
B,
Refunding,
AGMC
Insured,
5%,
2/01/44
.........
12,000,000
11,954,609
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,079,067
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,425,405
Revenue,
A,
5%,
7/01/40
............................................
49,035,000
49,274,551
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Miami-Dade
County
Health
Facilities
Authority
,
Variety
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/01/47
...........................
$
3,500,000
$
3,260,671
Mid-Bay
Bridge
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/40
............
5,000,000
5,045,008
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
6.2
%
,
5/01/53
.........................................................
5,000,000
5,098,911
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
BAM
Insured,
5%,
10/01/44
....................
4,000,000
4,299,335
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
3,635,000
3,800,079
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
7,283,639
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/39
.....
6,000,000
6,283,048
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/41
............................................
5,000,000
5,162,326
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
14,000,000
14,454,511
Palm
Beach
County
Educational
Facilities
Authority
,
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......................................................
3,695,000
3,379,403
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/46
.......................................................
7,570,000
6,629,848
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
4%,
11/15/41
.......................................................
500,000
417,092
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
5%,
11/15/42
.......................................................
1,000,000
954,382
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/41
....
5,000,000
3,936,879
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/47
....
105,000
78,485
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.625%,
5/01/34
........................................................
1,200,000
1,044,915
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.8%,
5/01/37
........................................................
995,000
812,971
Poitras
East
Community
Development
District
,
Special
Assessment
,
2023
,
5.25
%
,
5/01/52
.........................................................
2,500,000
2,445,363
Reunion
West
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2022
,
Refunding
,
3
%
,
5/01/36
..............................
1,250,000
1,022,602
River
Hall
Community
Development
District
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/36
......................................................
750,000
595,224
Sarasota
County
Health
Facilities
Authority
,
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/37
........................................................
2,350,000
2,153,297
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/42
........................................................
1,600,000
1,413,475
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/47
........................................................
2,450,000
2,090,098
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
..............
600,000
603,169
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
..............
1,025,000
994,414
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
..............
1,850,000
1,660,251
Sarasota
County
Public
Hospital
District
,
Obligated
Group,
Revenue,
2022,
4%,
7/01/52
............................
15,000,000
13,817,609
Sarasota
County
Public
Hospital
District
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
........................................................
10,000,000
9,369,830
School
District
of
Broward
County
,
GO
,
2022
,
5
%
,
7/01/51
.....................
26,045,000
28,310,602
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
21,656,368
South
Fork
East
Community
Development
District
,
Special
Assessment,
2021,
Refunding,
3%,
5/01/26
........................
100,000
97,284
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Florida
(continued)
South
Fork
East
Community
Development
District,
(continued)
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
........................
$
248,000
$
224,180
Special
Assessment,
2021,
Refunding,
3%,
5/01/38
........................
599,000
468,248
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
7,250,000
5,743,716
State
of
Florida
,
GO,
1999
D,
Refunding,
6%,
6/01/23
...................................
32,500,000
32,570,619
GO,
2016
F,
Refunding,
4%,
6/01/37
...................................
8,000,000
8,130,320
Tampa
Sports
Authority
,
Revenue
,
1995
,
NATL
Insured
,
6.1
%
,
10/01/26
...........
1,680,000
1,781,456
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,000,000
862,378
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,000,000
1,572,600
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
5,287,075
Tohoqua
Community
Development
District
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
.
1,175,000
928,958
Touchstone
Community
Development
District
,
Special
Assessment,
Senior
Lien
,
2022
A-1
,
5.5
%
,
5/01/53
.................................................
1,800,000
1,896,505
Town
of
Palm
Beach
,
GO
,
2018
,
4
%
,
7/01/43
..............................
5,000,000
5,076,850
University
of
North
Florida
Financing
Corp.
(The)
,
University
of
North
Florida
Dormitory
Facilities
,
Revenue
,
2016
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/35
............
5,000,000
5,307,565
Volusia
County
Educational
Facility
Authority
,
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/47
5,000,000
5,180,501
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2020
A,
Refunding,
5%,
10/15/49
.......................................................
3,000,000
3,138,734
i
Wildwood
Utility
Dependent
District
,
Revenue
,
2023
,
AGMC
Insured
,
5.5
%
,
10/01/53
.
6,970,000
7,839,651
870,079,865
Georgia
4.3%
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,068,762
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
6,413,342
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
7,057,623
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,141,106
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
5,213,947
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
14,392,433
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
15,947,788
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
30,461,656
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/40
..............
4,655,000
4,985,249
Water
&
Wastewater,
Revenue,
2018
B,
Refunding,
5%,
11/01/47
..............
4,845,000
5,117,287
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
4/01/41
...............................
50,000
48,885
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
10,419,471
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
20,000,000
18,867,968
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017,
Refunding,
4.125%,
11/01/45
.........
18,500,000
16,941,218
Oglethorpe
Power
Corp.,
Revenue,
2017
C,
Refunding,
4.125%,
11/01/45
.......
2,500,000
2,289,354
g
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
39,080,000
31,507,156
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/39
........................................................
11,420,000
11,571,347
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/46
......
15,000,000
15,325,814
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
4,722,747
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
2/15/45
.................
$
13,040,000
$
13,434,010
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,236,024
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/28
......................................
5,000,000
5,353,061
Revenue,
2021
C,
4%,
12/01/28
.......................................
4,500,000
4,508,620
f
Revenue,
2021
C,
Mandatory
Put,
4%,
12/01/28
...........................
16,500,000
16,444,877
f
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
14,500,000
14,444,031
f
Revenue,
2022
B,
Mandatory
Put,
5%,
6/01/29
............................
10,000,000
10,497,837
f,g
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
49,155,000
47,298,484
f
Revenue,
2023
A,
Mandatory
Put,
5%,
6/01/30
............................
14,000,000
14,772,338
f
Revenue,
2023
B,
Mandatory
Put,
5%,
3/01/30
............................
30,080,000
32,156,627
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,580,000
4,723,361
Revenue,
2021
A,
Refunding,
5%,
1/01/63
...............................
7,920,000
7,878,227
Revenue,
2022
A,
5.5%,
7/01/63
......................................
2,500,000
2,592,594
Revenue,
2023
A,
5.5%,
7/01/64
......................................
5,000,000
5,193,101
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2013
A
,
5
%
,
10/01/43
........................................................
10,000,000
10,025,960
401,052,305
Hawaii
1.2%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
25,000,000
26,561,867
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
25,805,000
26,704,898
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
25,450,000
26,150,519
Airports
System,
Revenue,
2022
A,
4%,
7/01/47
...........................
10,000,000
9,502,157
State
of
Hawaii
Department
of
Budget
&
Finance
,
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
..........
10,000,000
8,466,018
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
3.5%,
10/01/49
..................
17,035,000
13,598,301
110,983,760
Idaho
0.1%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/36
........................................................
4,200,000
4,403,367
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
3,500,000
3,635,522
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
5,747,947
13,786,836
Illinois
5.4%
Chicago
Board
of
Education
,
Dedicated
Capital
Improvement
Tax
,
Revenue
,
2023
,
5.75
%
,
4/01/48
...................................................
20,000,000
22,065,058
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
3,500,000
3,549,853
Revenue,
Second
Lien,
2016
B,
Refunding,
5%,
1/01/46
....................
18,420,000
18,867,468
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016
D,
5.25%,
1/01/42
............................
10,000,000
10,476,514
Revenue,
Senior
Lien,
2016
D,
5%,
1/01/47
..............................
18,000,000
18,573,309
Revenue,
Senior
Lien,
2022
A,
5%,
1/01/55
..............................
36,500,000
37,688,279
Chicago
Park
District
,
GO,
2020
C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,382,831
GO,
2020
C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
4,221,143
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
1,001,696
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Illinois
(continued)
Chicago
Park
District,
(continued)
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
$
1,000,000
$
999,589
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
990,721
GO,
2020
F-2,
Refunding,
4%,
1/01/36
..................................
1,250,000
1,256,738
GO,
2020
F-2,
Refunding,
5%,
1/01/39
..................................
1,625,000
1,730,852
GO,
2020
F-2,
Refunding,
5%,
1/01/40
..................................
1,625,000
1,723,056
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
Second
Lien
,
2022
A
,
Refunding
,
5
%
,
12/01/57
............................................
15,000,000
15,271,293
City
of
Chicago
,
GO
,
2023
A
,
5.5
%
,
1/01/40
...............................
2,845,000
3,084,506
City
of
Galesburg
,
Knox
College
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/46
......
7,000,000
6,130,639
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
5,120,008
Illinois
Finance
Authority
,
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/46
................
2,250,000
1,935,144
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/51
................
4,650,000
3,874,532
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/41
.........
3,480,000
2,370,487
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
5/15/27
........................................................
2,280,000
2,032,407
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/41
..............................
750,000
682,318
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/51
..............................
1,000,000
849,885
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/56
..............................
750,000
620,210
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
30,325,323
Illinois
Housing
Development
Authority
,
Revenue
,
2022
G
,
GNMA
Insured
,
5
%
,
10/01/46
........................................................
3,500,000
3,622,795
Macon
County
School
District
No.
61
Decatur
,
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/40
.......................
3,700,000
3,699,234
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/45
.......................
3,125,000
3,066,628
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
6,240,000
6,614,411
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/37
......................
10,000,000
5,272,453
Revenue,
2022
A,
Refunding,
4%,
12/15/42
..............................
500,000
458,823
Revenue,
2022
A,
Refunding,
4%,
12/15/47
..............................
365,000
322,579
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
36,000,000
30,980,253
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
3,627,311
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn.,
12/01/26
..................................
7,700,000
6,774,479
State
of
Illinois
,
GO,
2016,
5%,
11/01/35
.............................................
1,000,000
1,034,480
GO,
2017
A,
5%,
12/01/36
...........................................
6,070,000
6,368,987
GO,
2017
A,
4.25%,
12/01/40
.........................................
3,150,000
3,126,479
GO,
2017
D,
5%,
11/01/28
...........................................
6,425,000
6,900,234
GO,
2019
A,
5%,
11/01/28
...........................................
10,000,000
10,879,681
GO,
2019
B,
4%,
11/01/34
...........................................
2,600,000
2,630,352
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,406,175
GO,
2019
C,
4%,
11/01/43
...........................................
4,190,000
3,959,858
GO,
2020,
5.75%,
5/01/45
...........................................
7,965,000
8,726,770
GO,
2020
C,
4%,
10/01/37
...........................................
3,685,000
3,633,863
GO,
2020
C,
4%,
10/01/38
...........................................
9,750,000
9,522,275
GO,
2020
C,
4%,
10/01/39
...........................................
4,585,000
4,445,429
GO,
2020
C,
4%,
10/01/41
...........................................
3,010,000
2,880,236
GO,
2021
A,
4%,
3/01/38
............................................
5,000,000
4,911,455
GO,
2021
B,
5%,
3/01/25
............................................
4,500,000
4,616,868
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
State
of
Illinois,
(continued)
GO,
2022
B,
5%,
10/01/30
...........................................
$
14,650,000
$
16,296,776
GO,
2022
B,
5%,
10/01/31
...........................................
26,500,000
29,759,511
GO,
2022
C,
5%,
10/01/38
...........................................
15,000,000
16,231,158
GO,
2022
C,
5.5%,
10/01/40
.........................................
18,050,000
20,164,341
GO,
2022
C,
5.5%,
10/01/41
.........................................
10,000,000
11,139,946
GO,
2022
C,
5.5%,
10/01/44
.........................................
16,000,000
17,696,024
i
GO,
2023
B,
5.5%,
5/01/47
..........................................
2,500,000
2,736,829
Sales
Tax,
Revenue,
2016
C,
Refunding,
4%,
6/15/26
......................
5,000,000
5,087,931
Tri-County
River
Valley
Development
Authority
,
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
A,
Pre-Refunded,
3.75%,
12/01/36
.......................................................
10,090,000
10,648,802
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
B,
Pre-Refunded,
5.75%,
12/01/36
.......................................................
785,000
823,107
g
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4%,
12/01/40
...........................................
7,565,000
6,205,531
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4.5%,
12/01/50
.........................................
34,795,000
27,102,111
501,198,034
Indiana
2.8%
City
of
Whiting
,
BP
Products
North
America,
Inc.
,
Revenue
,
2021
,
3
%
,
11/01/51
.....
10,000,000
7,232,846
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,145,190
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
11,306,677
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
13,291,683
BHI
Senior
Living
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/41
...
7,250,000
5,836,209
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
17,672,141
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
4%,
10/01/42
...............
24,690,000
24,580,643
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2014
A,
5%,
10/01/39
...............
30,000,000
30,591,507
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/43
..
7,000,000
5,238,113
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/51
..
3,000,000
2,061,326
i
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/37
..
5,000,000
4,013,787
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
5,000,000
4,415,027
Marion
County
Capital
Improvement
Board,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/37
........................................................
10,000,000
10,325,370
Ohio
Valley
Electric
Corp.,
Revenue,
2010
B,
2.5%,
11/01/30
.................
3,925,000
3,447,482
University
of
Evansville,
Revenue,
2022
A,
Refunding,
5.25%,
9/01/57
..........
10,000,000
9,481,970
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
5,763,576
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
21,290,000
22,029,576
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
6,500,000
6,508,592
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017,
Refunding,
5%,
1/01/40
.................................
23,225,000
24,969,829
Revenue,
2019
A,
4%,
2/01/44
........................................
3,000,000
3,000,009
Revenue,
2019
A,
5%,
2/01/49
........................................
41,970,000
43,961,380
Northern
Indiana
Commuter
Transportation
District
,
Revenue
,
2016
,
5
%
,
7/01/41
...
6,000,000
6,222,929
265,095,862
Iowa
0.7%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC,
Revenue,
2022,
Refunding,
5%,
12/01/50
.............
8,000,000
7,952,258
Iowa
Health
System
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
2/15/48
..
7,500,000
7,755,429
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
5/15/41
....
760,000
598,406
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2018
A,
5%,
5/15/48
....
2,725,000
2,023,920
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Iowa
(continued)
Iowa
Finance
Authority,
(continued)
f
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
3.91%,
5/15/26
......................................
$
8,250,000
$
7,458,582
Iowa
Tobacco
Settlement
Authority
,
Revenue,
2021
A-2,
1,
Refunding,
4%,
6/01/49
............................
20,730,000
18,676,405
Revenue,
2021
B-1,
2,
Refunding,
4%,
6/01/49
...........................
25,285,000
25,037,612
69,502,612
Kansas
0.4%
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2014
A,
Refunding,
5%,
9/01/44
....................
3,000,000
3,028,613
Utility
System,
Revenue,
2016
A,
5%,
9/01/45
............................
10,000,000
10,206,005
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,184,089
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/46
...................
16,565,000
17,122,477
35,541,184
Kentucky
1.9%
Campbell
Kenton
&
Boone
Counties
Sanitation
District
No.
1
,
Revenue
,
2019
,
Refunding
,
4
%
,
8/01/34
.............................................
4,310,000
4,455,589
City
of
Hazard
,
Appalachian
Regional
Healthcare
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
3
%
,
7/01/46
.............................................
2,000,000
1,486,625
City
of
Owensboro
,
Electric
Light
&
Power
System,
Revenue,
2017,
Refunding,
4%,
1/01/27
.........
1,250,000
1,298,943
Water,
Revenue,
2018,
Refunding,
BAM
Insured,
4%,
9/15/45
................
5,000,000
4,879,302
County
of
Boyle
,
Centre
College
of
Kentucky
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/37
2,000,000
2,093,149
County
of
Carroll
,
Kentucky
Utilities
Co.,
Revenue,
2008
A,
Refunding,
2%,
2/01/32
..............
3,000,000
2,489,365
f
Kentucky
Utilities
Co.,
Revenue,
2016
A,
Refunding,
Mandatory
Put,
1.55%,
9/01/26
2,000,000
1,820,714
County
of
Warren
,
Bowling
Green-Warren
County
Community
Hospital
Corp.
,
Revenue
,
2012
A
,
5
%
,
10/01/33
...............................................
1,000,000
1,000,062
Eastern
Kentucky
University
,
Revenue
,
2018
A
,
4
%
,
10/01/37
..................
1,540,000
1,564,676
Fayette
County
School
District
Finance
Corp.
,
Fayette
County
School
District,
Revenue,
2015
D,
5%,
8/01/34
................
1,985,000
2,045,476
Fayette
County
School
District,
Revenue,
2018
A,
4%,
5/01/38
................
1,000,000
996,657
Hopkins
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.......
2,340,000
1,659,474
Kentucky
Bond
Development
Corp.
,
Revenue,
2018
A,
5%,
9/01/48
........................................
2,500,000
2,619,175
Centre
College
of
Kentucky,
Revenue,
2021,
4%,
6/01/51
....................
1,350,000
1,197,918
Transylvania
University,
Revenue,
2019
B,
4%,
3/01/49
.....................
2,500,000
2,207,237
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/46
.............
735,000
659,190
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/49
.............
330,000
291,355
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/49
........................
21,200,000
21,625,953
Kentucky
Municipal
Power
Agency
,
Revenue,
2015
A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
10,079,762
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
7,993,707
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/36
....................
8,015,000
8,219,238
Revenue,
2019
A,
Refunding,
4%,
9/01/45
...............................
2,000,000
1,815,639
f
Kentucky
Public
Energy
Authority
,
Revenue,
2019
C,
Mandatory
Put,
4%,
2/01/28
...........................
37,000,000
37,054,545
Revenue,
2022
A-2,
Mandatory
Put,
4.423%,
8/01/30
.......................
5,000,000
4,763,229
Kentucky
Rural
Water
Finance
Corp.
,
Revenue
,
2001
A
,
5
%
,
2/01/26
.............
125,000
125,149
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet,
Revenue,
5%,
4/01/38
...........
2,500,000
2,643,165
Kentucky
Finance
and
Administration
Cabinet,
Revenue,
A,
Refunding,
5%,
8/01/34
3,500,000
3,602,815
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Kentucky
(continued)
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/33
.............................................
$
3,000,000
$
3,103,200
Lewis
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.........
2,000,000
1,439,467
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District,
Revenue,
2017
A,
4%,
5/15/48
..................
2,750,000
2,624,160
Metropolitan
Sewer
District,
Revenue,
2018
A,
Refunding,
4%,
5/15/38
..........
5,000,000
5,067,279
Louisville/Jefferson
County
Metropolitan
Government
,
Bellarmine
University,
Inc.,
Revenue,
2015,
Refunding,
5%,
5/01/31
............
2,000,000
1,981,639
Bellarmine
University,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
5/01/36
..........
2,715,000
2,584,130
Louisville
Gas
and
Electric
Co.,
Revenue,
2003
A,
Refunding,
2%,
10/01/33
......
4,000,000
3,269,707
Norton
Healthcare
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/39
...........
4,000,000
3,873,202
Morehead
State
University
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
10/01/28
...........
1,910,000
1,938,396
Paducah
Electric
Plant
Board
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/34
........................................................
5,700,000
5,965,220
Scott
County
School
District
Finance
Corp.
,
Scott
County
Board
of
Education
,
Revenue
,
2018
,
4
%
,
6/01/38
.........................................
1,615,000
1,620,108
Shelby
County
School
District
Finance
Corp.
,
Shelby
County
Public
School
District
,
Revenue
,
2018
,
4
%
,
8/01/38
.........................................
3,465,000
3,473,450
University
of
Kentucky
,
Revenue,
2014
A,
4%,
4/01/44
........................................
2,250,000
2,234,491
Revenue,
2018
A,
4%,
10/01/32
.......................................
4,000,000
4,102,285
University
of
Louisville
,
Revenue
,
2016
D
,
5
%
,
3/01/30
.......................
4,140,000
4,403,951
178,368,794
Louisiana
2.5%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
10,000,000
10,334,023
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
6,238,733
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
7,065,000
6,877,291
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,207,348
g
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
9,800,000
8,564,707
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
4,880,000
4,149,349
Parish
of
St.
Bernard,
Revenue,
144A,
2021,
4%,
11/01/45
...................
2,000,000
1,758,757
Parish
of
St.
Charles,
Revenue,
144A,
2022,
4.5%,
11/01/47
.................
9,455,000
8,867,644
Parish
of
St.
John
the
Baptist,
Revenue,
144A,
2019,
3.9%,
11/01/44
...........
2,265,000
1,963,306
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
6,100,000
5,186,687
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
3,877,088
2,950,394
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
6,350,000
4,708,689
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
8,000,000
5,948,766
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
10,000,000
7,860,492
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
20,000,000
20,325,958
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
15,000,000
15,146,112
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
11,295,000
11,369,585
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/46
27,500,000
28,035,422
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
5/15/47
..............................................
9,925,000
7,738,633
g
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
2,500,000
2,460,631
g
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
14,000,000
13,561,439
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
9,675,000
9,817,519
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Louisiana
(continued)
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................................
$
6,000,000
$
6,000,042
f
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
7,098,208
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/44
........................................
8,110,000
8,319,756
Revenue,
2020
E,
5%,
4/01/47
........................................
10,000,000
10,219,869
Terrebonne
Levee
&
Conservation
District
,
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/40
.......................
5,065,000
4,990,380
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/41
.......................
5,165,000
5,093,011
230,792,751
Maine
0.2%
Maine
Turnpike
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.......................
15,500,000
16,398,082
Maryland
1.2%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/39
.....................
10,000,000
10,252,927
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/44
.....................
10,000,000
10,197,854
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/39
.........................
9,430,000
9,668,510
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/44
.........................
5,500,000
5,608,820
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
4.25%,
7/01/50
1,000,000
886,447
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
5%,
7/01/56
.
1,415,000
1,417,437
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
A,
5%,
11/12/28
.............
10,000,000
10,292,307
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
B,
5.25%,
6/30/52
...........
10,000,000
10,154,086
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
12,665,503
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
23,000,000
19,656,729
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
2,936,238
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
5,465,000
5,636,326
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/33
...............
3,205,000
3,422,352
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/34
...............
3,420,000
3,349,198
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/35
...............
3,555,000
3,441,826
109,586,560
Massachusetts
1.7%
Commonwealth
of
Massachusetts
,
GO,
2016
G,
4%,
9/01/42
............................................
20,000,000
20,016,618
GO,
2018
E,
5.25%,
9/01/43
.........................................
10,000,000
10,889,605
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
25,055,000
26,389,855
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
15,961,628
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax
,
Revenue
,
2005
A
,
5
%
,
7/01/28
10,000,000
11,257,331
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
450,000
451,003
Revenue,
2002
A,
5%,
8/01/32
........................................
225,000
225,322
Massachusetts
Development
Finance
Agency
,
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
15,415,000
15,222,349
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/34
........................................................
625,000
692,514
Springfield
College,
Revenue,
2021
A,
4%,
6/01/56
........................
3,000,000
2,406,122
g
Waste
Management
of
Massachusetts,
Inc.,
Revenue,
144A,
2002,
1.25%,
5/01/27
3,250,000
2,893,918
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
10,445,511
Massachusetts
Educational
Financing
Authority
,
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,000,000
1,887,799
Revenue,
2021
C,
3%,
7/01/51
........................................
3,200,000
2,211,151
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
Massachusetts
Port
Authority
,
Revenue,
2021
E,
5%,
7/01/51
........................................
$
24,870,000
$
26,033,650
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
7,721,961
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien
,
2014-1
,
5
%
,
11/01/39
........................................................
8,185,000
8,338,547
163,044,884
Michigan
0.9%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
10,000
10,013
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003
A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,015
Michigan
Finance
Authority
,
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019
A,
5%,
11/15/48
.....
20,000,000
20,686,820
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/36
...
1,000,000
1,001,246
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/37
...
2,000,000
1,976,307
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/38
...
1,500,000
1,470,338
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/39
...
250,000
242,902
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/40
...
2,250,000
2,160,954
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
4,000,000
3,592,596
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
3,635,000
3,710,702
Michigan
State
Building
Authority
,
Revenue
,
2013
1-A
,
Refunding
,
5.25
%
,
10/15/44
..
20,655,000
20,831,229
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/48
....
12,415,000
12,440,222
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
7,000,000
6,018,329
Pontiac
School
District
,
GO
,
2020
,
4
%
,
5/01/50
.............................
8,665,000
8,518,069
82,669,742
Mississippi
1.0%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/47
.........................
22,000,000
22,691,150
Mississippi
Business
Finance
Corp.
,
System
Energy
Resources,
Inc.
,
Revenue
,
2021
,
Refunding
,
2.375
%
,
6/01/44
..........................................
7,000,000
4,446,233
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System,
Revenue,
2013,
AGMC
Insured,
6.875%,
12/01/40
.......................................................
3,400,000
3,456,769
g
County
of
Jackson,
Revenue,
144A,
2021,
3.625%,
11/01/36
.................
3,000,000
2,708,303
Mississippi
Home
Corp.
,
g
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
3.5%,
6/01/33
.
584,263
486,680
g
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
1,000,000
734,266
g
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
17,965,177
13,151,647
g
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B-5,
5.2%,
6/01/36
5,600,000
4,634,619
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.15%,
6/01/46
..................................................
3,464,038
2,607,451
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.65%,
6/01/62
..................................................
5,381,952
4,056,221
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/36
...
6,350,000
6,516,265
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/46
...
30,000,000
30,146,808
95,636,412
Missouri
0.9%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
BJC
Healthcare
Obligated
Group,
Revenue,
2015
A,
4%,
1/01/45
..............
20,005,000
19,006,614
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Missouri
(continued)
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri,
(continued)
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
$
4,000,000
$
3,640,471
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
25,283,725
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
7,500,000
7,713,947
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport
,
Revenue
,
2019
B
,
AGMC
Insured
,
5
%
,
3/01/49
...................................
20,000,000
20,563,748
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/45
.....................................................
5,000,000
5,305,378
81,513,883
Montana
0.2%
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
.......
10,000,000
10,304,776
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
6,530,302
16,835,078
Nebraska
0.8%
f
Central
Plains
Energy
Project
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
10/01/29
.....
15,000,000
15,710,643
Douglas
County
Hospital
Authority
No.
2
,
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
11/15/47
.......................................
10,000,000
10,240,249
Gretna
Public
Schools
,
GO
,
2022
,
4
%
,
12/15/47
............................
12,935,000
12,665,400
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
10,217,564
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
10,228,262
Public
Power
Generation
Agency
,
Revenue,
2016
A,
Refunding,
5%,
1/01/39
...............................
7,340,000
7,643,877
Revenue,
2016
A,
Refunding,
5%,
1/01/41
...............................
5,140,000
5,330,976
72,036,971
Nevada
0.2%
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
.............................................
2,775,000
2,836,089
City
of
Henderson
,
GO
,
2020
A-1
,
4
%
,
6/01/45
.............................
10,000,000
9,884,637
Las
Vegas
Convention
&
Visitors
Authority
,
County
of
Clark
&
City
of
Las
Vegas
Combined
Room
Tax
,
Revenue
,
2018
B
,
5
%
,
7/01/43
.......................
10,000,000
10,490,543
23,211,269
New
Hampshire
0.2%
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Concord
Hospital
Obligated
Group,
Revenue,
2017,
5%,
10/01/47
.............
5,000,000
5,150,489
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
4,030,589
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
10,350,000
10,538,985
19,720,063
New
Jersey
3.1%
Camden
County
Improvement
Authority
(The)
,
KIPP
Cooper
Norcross
Obligated
Group
,
Revenue
,
2022
,
6
%
,
6/15/62
.........................................
5,075,000
5,386,215
City
of
Newark
,
Mass
Transit
Access
Tax
,
Revenue
,
2022
,
AGMC
Insured
,
6
%
,
11/15/62
........................................................
4,000,000
4,653,006
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
18,450,000
19,486,776
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/52
...................
10,000,000
10,664,028
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
4,600,000
4,947,921
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
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
$
5,135,101
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
14,636,943
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2021
C,
Refunding,
3.25%,
12/01/51
...........................
2,000,000
1,462,544
Revenue,
Senior
Lien,
2018
A,
4%,
12/01/33
.............................
1,335,000
1,329,386
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
6,410,000
6,166,687
i
Revenue,
Senior
Lien,
2023
B,
4%,
12/01/44
.............................
8,000,000
7,864,724
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2009
A,
BAM
Insured,
Zero
Cpn.,
12/15/39
.......................
49,830,000
24,649,316
Revenue,
2009
A,
Zero
Cpn.,
12/15/39
..................................
22,000,000
10,415,251
Revenue,
2013
AA,
5%,
6/15/44
.......................................
1,000,000
1,000,821
Revenue,
2014
BB-1,
5%,
6/15/31
.....................................
3,000,000
3,293,899
Revenue,
2015
AA,
5%,
6/15/45
.......................................
15,000,000
15,246,932
Revenue,
2018
A,
Refunding,
5%,
12/15/36
..............................
7,000,000
7,503,615
Revenue,
2019
AA,
5.25%,
6/15/43
....................................
5,000,000
5,319,375
Revenue,
2019
BB,
5%,
6/15/33
.......................................
3,250,000
3,555,151
Revenue,
2020
AA,
5%,
6/15/35
.......................................
3,000,000
3,329,257
Revenue,
2020
AA,
5%,
6/15/37
.......................................
5,220,000
5,688,334
Revenue,
2020
AA,
5%,
6/15/38
.......................................
1,000,000
1,084,668
Revenue,
2020
AA,
5%,
6/15/39
.......................................
4,240,000
4,576,495
Revenue,
2020
AA,
5%,
6/15/40
.......................................
2,500,000
2,688,199
Revenue,
2020
AA,
5%,
6/15/45
.......................................
20,435,000
21,712,500
Revenue,
2020
AA,
4%,
6/15/50
.......................................
39,000,000
36,870,113
Revenue,
2021
A,
Refunding,
5%,
6/15/31
...............................
7,250,000
8,239,107
Revenue,
2021
A,
Refunding,
5%,
6/15/33
...............................
1,250,000
1,413,305
Revenue,
2022
BB,
4%,
6/15/46
.......................................
17,000,000
16,312,331
Revenue,
2022
CC,
5.5%,
6/15/50
.....................................
2,000,000
2,218,203
New
Jersey
Turnpike
Authority
,
Revenue
,
2015
E
,
5
%
,
1/01/45
.................
11,475,000
11,724,571
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
6/01/46
....
24,690,000
24,588,489
293,163,263
New
Mexico
0.4%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
B
,
Refunding
,
2.15
%
,
4/01/33
...................................................
21,800,000
17,503,715
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
15,663,925
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/33
.
1,000,000
1,011,654
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/35
.
1,000,000
988,754
35,168,048
New
York
9.8%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
2,070,318
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
180,000
180,415
GO,
2018
E-1,
5%,
3/01/40
..........................................
3,215,000
3,442,234
GO,
2018
E-1,
5%,
3/01/41
..........................................
11,355,000
12,116,916
GO,
2022
D-1,
5.5%,
5/01/46
.........................................
2,500,000
2,871,220
GO,
2023
A-1,
4%,
9/01/46
..........................................
6,000,000
5,882,444
Metropolitan
Transportation
Authority
,
Revenue,
2012
A-1,
5%,
11/15/40
.....................................
30,000,000
30,056,610
Revenue,
2013
A,
5%,
11/15/38
.......................................
11,800,000
11,822,267
Revenue,
2013
B,
5%,
11/15/43
.......................................
8,000,000
8,015,094
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
New
York
(continued)
Metropolitan
Transportation
Authority,
(continued)
Revenue,
2015
A,
5%,
11/15/40
.......................................
$
7,000,000
$
7,071,315
Revenue,
2015
D-1,
Refunding,
5%,
11/15/32
............................
1,250,000
1,285,404
Revenue,
2016
A-1,
5.25%,
11/15/56
...................................
15,000,000
15,133,725
Revenue,
2016
D,
Refunding,
5%,
11/15/31
..............................
1,180,000
1,226,403
Revenue,
2017
A-2,
Refunding,
5%,
11/15/26
.............................
4,425,000
4,643,112
Revenue,
2017
C-1,
Refunding,
5%,
11/15/33
............................
1,780,000
1,900,501
Revenue,
2017
C-2,
Refunding,
Zero
Cpn.,
11/15/29
.......................
2,090,000
1,638,913
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
47,581,176
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
9,461,851
Revenue,
2020
A-1,
5%,
11/15/47
.....................................
24,300,000
25,212,168
Revenue,
2020
D,
5%,
11/15/44
.......................................
50,000,000
52,300,670
Revenue,
2020
D,
4%,
11/15/50
.......................................
20,000,000
18,476,130
Revenue,
2020
E,
Refunding,
4%,
11/15/45
..............................
905,000
856,297
Revenue,
2021
A-1,
4%,
11/15/44
.....................................
6,725,000
6,380,870
New
York
City
Industrial
Development
Agency
,
Yankee
Stadium
LLC
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
4
%
,
3/01/45
.................................
6,000,000
5,687,062
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System,
Revenue,
2013
DD,
Refunding,
5%,
6/15/35
...........
30,705,000
30,768,363
Water
&
Sewer
System,
Revenue,
2015
HH,
Refunding,
5%,
6/15/39
...........
15,000,000
15,454,282
Water
&
Sewer
System,
Revenue,
2017
CC,
Refunding,
5%,
6/15/46
...........
32,500,000
33,812,945
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
12,949,914
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
A-1,
5%,
11/01/34
......................
15,000,000
15,098,468
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
10,466,525
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
11,752,537
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
11,945,000
12,923,030
Future
Tax
Secured,
Revenue,
2018
C-3,
4%,
5/01/43
......................
19,800,000
19,532,362
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
9,794,619
New
York
Liberty
Development
Corp.
,
Revenue,
2021
A,
Refunding,
3%,
11/15/51
..............................
10,000,000
7,272,004
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
45,957,596
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
28,828,413
New
York
State
Dormitory
Authority
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
B,
5%,
2/15/40
.........
20,000,000
20,551,830
State
of
New
York
Personal
Income
Tax,
Revenue,
2017
B,
Refunding,
5%,
2/15/42
24,410,000
26,174,118
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
Refunding,
4%,
3/15/48
5,000,000
4,894,000
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
10,552,968
State
of
New
York
Sales
Tax,
Revenue,
2018
A,
5%,
3/15/39
.................
13,270,000
14,325,977
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/37
........
25,000,000
27,218,017
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/44
........
16,000,000
17,173,843
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
5%,
3/15/46
.................
73,125,000
78,091,065
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
......
5,000
5,631
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/50
........................................
20,000,000
19,029,022
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/51
..............................
9,000,000
9,205,897
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/44
7,000,000
6,903,183
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/51
12,115,000
11,770,933
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
A
,
4
%
,
3/15/45
........................................
36,905,000
36,123,485
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/32
..........................
5,000,000
5,242,202
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/36
..........................
5,560,000
5,756,485
Delta
Air
Lines,
Inc.,
Revenue,
2020,
4%,
10/01/30
.........................
21,460,000
21,161,470
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/40
.........................
9,360,000
9,608,183
JFK
International
Air
Terminal
LLC,
Revenue,
2022,
5%,
12/01/33
.............
7,500,000
8,250,622
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
$
20,000,000
$
20,177,414
Revenue,
218,
4%,
11/01/47
.........................................
13,500,000
12,725,973
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
2022
A,
4%,
11/15/52
.......................................
10,000,000
9,684,633
Metropolitan
Transportation
Authority
Payroll
Mobility
Tax,
Revenue,
Senior
Lien,
2022
A,
Refunding,
5%,
5/15/57
.....................................
8,375,000
9,017,631
913,568,755
North
Carolina
0.5%
Greater
Asheville
Regional
Airport
Authority
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.5
%
,
7/01/52
.........................................................
5,000,000
5,427,699
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,074,752
North
Carolina
Turnpike
Authority
,
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/33
......................
25,000,000
17,592,452
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/34
......................
15,000,000
10,102,637
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/35
......................
15,215,000
9,733,175
44,930,715
North
Dakota
0.6%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/33
..
2,000,000
2,111,755
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/34
..
3,500,000
3,672,262
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/35
..
1,815,000
1,721,111
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/37
..
2,950,000
2,712,115
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/38
..
3,400,000
3,102,683
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/40
..
3,375,000
3,001,372
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
..
1,875,000
1,650,180
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
9,654,513
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
8,886,542
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
5,761,210
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
10,423,451
52,697,194
Ohio
2.1%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
3,915,000
3,656,052
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
5,700,000
5,256,490
American
Municipal
Power,
Inc.
,
Combined
Hydroelectric,
Revenue,
2016
A,
Refunding,
5%,
2/15/46
............
20,000,000
20,408,058
Prairie
State
Energy
Campus,
Revenue,
2015
A,
Refunding,
5%,
2/15/39
........
5,000,000
5,026,391
Prairie
State
Energy
Campus,
Revenue,
2015
A,
Refunding,
5%,
2/15/42
........
2,500,000
2,508,968
Prairie
State
Energy
Campus,
Revenue,
2019
C,
Refunding,
4%,
2/15/39
........
18,795,000
18,642,757
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
A-2
,
1
,
Refunding
,
4
%
,
6/01/48
.............................................
4,505,000
3,988,529
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
6,923,674
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
7,592,357
County
of
Franklin
,
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/40
..........
10,410,000
8,428,695
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
10,215,172
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
10,800,000
11,045,947
County
of
Hamilton
,
UC
Health
Obligated
Group
,
Revenue
,
2020
,
5
%
,
9/15/50
.....
7,500,000
7,615,203
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Ohio
(continued)
Northeast
Ohio
Regional
Sewer
District
,
Revenue
,
2017
,
Refunding
,
4
%
,
11/15/38
..
$
10,000,000
$
10,171,853
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University,
Revenue,
2021
A,
Refunding,
4%,
12/01/44
....
6,815,000
6,703,385
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,350,000
1,245,291
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,185,000
1,073,350
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,530,000
2,243,511
Ohio
State
University
(The)
,
Revenue
,
2013
A
,
Refunding
,
5
%
,
6/01/38
...........
10,000,000
10,013,063
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
5.75
%
,
2/15/35
.........................................................
35,000,000
41,954,538
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019
B,
4%,
1/01/46
..
10,000,000
9,813,809
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
640,000
607,705
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/40
855,000
788,852
195,923,650
Oklahoma
0.1%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,274,939
Revenue,
2017,
5%,
7/01/47
.........................................
4,500,000
4,780,000
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
3,491,372
12,546,311
Oregon
1.2%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
12,273,699
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
20,000,000
21,389,668
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
.........................
1,685,000
1,662,339
Port
of
Portland
,
Airport,
Revenue,
25
B,
5%,
7/01/44
....................................
2,450,000
2,544,684
Airport,
Revenue,
27
A,
5%,
7/01/38
....................................
10,000,000
10,672,649
Airport,
Revenue,
27
A,
5%,
7/01/45
....................................
10,000,000
10,422,106
Airport,
Revenue,
28,
5%,
7/01/52
.....................................
13,755,000
14,311,097
Airport,
Revenue,
29,
5.5%,
7/01/53
....................................
17,750,000
19,548,643
State
of
Oregon
,
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
5,080,000
5,152,613
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
4,695,000
4,613,458
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn.,
6/15/41
.......................................
5,725,000
2,498,901
GO,
2018
A,
Zero
Cpn.,
6/15/42
.......................................
5,900,000
2,430,959
GO,
2018
A,
Zero
Cpn.,
6/15/43
.......................................
5,500,000
2,151,582
109,672,398
Pennsylvania
1.1%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
5,035,955
City
of
Philadelphia
,
Airport
,
Revenue
,
2020
C
,
Refunding
,
4
%
,
7/01/45
...........
1,500,000
1,405,839
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/33
..........
4,550,000
4,694,997
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
5,000,000
5,067,274
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/31
........
440,000
400,279
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
........
345,000
291,792
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
3,300,000
2,365,629
Lehigh
County
General
Purpose
Authority
,
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/52
....
13,785,000
11,633,069
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Lehigh
County
General
Purpose
Authority,
(continued)
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/57
....
$
5,000,000
$
4,101,056
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
491,335
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
943,224
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
8,397,299
Pennsylvania
Economic
Development
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Transportation,
Revenue,
2022,
5.25%,
6/30/53
..................................................
4,000,000
4,147,010
Commonwealth
of
Pennsylvania
Department
of
Transportation,
Revenue,
2022,
6%,
6/30/61
........................................................
5,000,000
5,594,656
UPMC
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
2/15/40
............
5,240,000
5,145,417
Pennsylvania
Housing
Finance
Agency
,
Revenue
,
2022-139
A
,
Refunding
,
4
%
,
10/01/37
........................................................
9,100,000
8,922,191
Pennsylvania
Turnpike
Commission
,
Revenue
,
2020
B
,
5
%
,
12/01/50
............
8,000,000
8,494,528
Philadelphia
Gas
Works
Co.
,
Revenue
,
16th
A
,
AGMC
Insured
,
4
%
,
8/01/45
.......
4,000,000
3,902,202
School
District
of
Philadelphia
(The)
,
GO,
2016
F,
Refunding,
5%,
9/01/33
...................................
6,415,000
6,716,637
GO,
2016
F,
Refunding,
5%,
9/01/36
...................................
4,090,000
4,234,109
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
10,604,596
102,589,094
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
5,500,000
5,542,924
Rhode
Island
Housing
&
Mortgage
Finance
Corp.
,
Revenue,
10A,
6.5%,
4/01/27
.........................................
130,000
130,289
Revenue,
15A,
6.85%,
10/01/24
.......................................
120,000
120,271
Rhode
Island
Student
Loan
Authority
,
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/27
.............................
1,000,000
1,069,533
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/29
.............................
2,025,000
2,232,810
9,095,827
South
Carolina
1.8%
City
of
Rock
Hill
,
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/41
......................
7,690,000
7,939,456
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/47
......................
5,000,000
5,133,272
County
of
Greenwood
,
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/37
............
8,465,000
8,546,151
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/39
............
1,195,000
1,197,828
g
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3.75
%
,
11/01/36
................................
1,270,000
1,002,158
South
Carolina
Jobs-Economic
Development
Authority
,
g
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
23,630,000
19,014,754
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
22,470,000
18,026,340
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-2,
4.75%,
12/01/26
...........
2,115,000
1,947,714
g
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
17,900,000
11,900,086
g
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
32,000,000
20,366,813
g
FAH
Pelham
LLC,
Revenue,
144A,
2023
A-1,
I,
6.5%,
2/01/56
................
24,865,000
24,480,751
g
FAH
Pelham
LLC,
Revenue,
144A,
2023
A-2,
I,
10%,
8/01/39
.................
770,000
765,083
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/43
......
10,000,000
10,239,641
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
15,000,000
15,240,357
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
South
Carolina
(continued)
South
Carolina
Ports
Authority
,
Revenue,
2018,
5%,
7/01/48
.........................................
$
10,000,000
$
10,275,253
Revenue,
2019
B,
5%,
7/01/54
........................................
10,365,000
10,634,793
Spartanburg
Regional
Health
Services
District
,
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/37
........................................
1,415,000
1,439,373
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/39
........................................
1,410,000
1,419,315
169,569,138
South
Dakota
0.7%
County
of
Lincoln
,
Augustana
College
Association
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/61
......................................................
4,855,000
3,715,302
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2015
A,
Refunding,
5%,
8/01/38
...............................
3,475,000
3,595,323
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
9,659,155
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
36,050,000
36,853,086
Monument
Health
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
..............
10,920,000
10,854,085
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
5,741,446
70,418,397
Tennessee
3.2%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CDFI
Phase
I
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
................................
1,000,000
1,019,067
City
of
Chattanooga
,
Electric
,
Revenue
,
2015
C
,
Refunding
,
5
%
,
9/01/40
..........
2,750,000
2,847,664
City
of
Germantown
,
GO,
2017,
4%,
8/01/43
.............................................
2,330,000
2,338,049
GO,
2017,
4%,
8/01/45
.............................................
2,525,000
2,526,052
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
5%,
4/01/36
......
3,885,000
3,943,284
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
5%,
4/01/36
........................................................
115,000
119,298
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
4%,
4/01/41
......
24,265,000
23,163,010
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
4%,
4/01/41
........................................................
735,000
748,897
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
5%,
4/01/41
....
2,255,000
2,329,570
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
Pre-Refunded,
5%,
4/01/41
........................................................
115,000
128,969
City
of
Knoxville
,
Wastewater
System
,
Revenue
,
2015
A
,
Refunding
,
4
%
,
4/01/42
...
5,000,000
4,999,897
City
of
Memphis
,
Electric
System,
Revenue,
2020
A,
3%,
12/01/42
..........................
2,470,000
2,037,792
Gas,
Revenue,
2017,
4%,
12/01/36
....................................
1,000,000
1,026,529
Gas,
Revenue,
2020,
3%,
12/01/42
....................................
1,000,000
836,129
City
of
Portland
,
Water
&
Sewer
,
Revenue
,
2020
,
AGMC
Insured
,
3
%
,
4/01/45
......
1,775,000
1,417,629
County
of
Coffee
,
GO
,
2019
,
Refunding
,
4
%
,
6/01/44
........................
2,760,000
2,744,758
County
of
Maury
,
GO
,
2015
,
Refunding
,
4
%
,
4/01/34
.........................
1,775,000
1,803,293
County
of
Wilson
,
GO
,
2017
A
,
4
%
,
4/01/42
................................
5,000,000
5,010,544
Harpeth
Valley
Utilities
District
of
Davidson
and
Williamson
Counties
,
Revenue,
2014,
5%,
9/01/44
.........................................
4,400,000
4,462,560
Revenue,
2020,
4%,
9/01/50
.........................................
500,000
492,251
Industrial
Development
Board
of
The
City
of
Kingsport
Tennessee
(The)
,
Model
City
II
LP
,
Revenue
,
2009
,
GNMA
Insured
,
5.5
%
,
7/20/39
.........................
2,995,000
2,996,168
Johnson
City
Health
&
Educational
Facilities
Board
,
Ballad
Health
Obligated
Group
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.25
%
,
7/01/28
.......................
8,500,000
8,868,991
Knox
Chapman
Utility
District
of
Knox
County
,
Revenue
,
2012
,
Refunding
,
4
%
,
1/01/40
4,000,000
3,999,949
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
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
....
$
18,000,000
$
18,414,717
Covenant
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/47
....
22,815,000
23,299,985
University
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
9/01/47
3,000,000
2,952,436
University
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
4/01/36
2,250,000
2,334,471
Madison
Suburban
Utility
District
,
Revenue
,
2021
,
3
%
,
2/01/45
.................
1,000,000
793,839
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/43
.........................................
10,000,000
10,320,638
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
11,283,826
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......
3,500,000
2,688,358
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/55
.......
9,015,000
6,371,275
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/41
...............
1,050,000
899,810
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/51
...............
6,860,000
5,453,135
Vanderbilt
University
Medical
Center
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/40
........................................................
5,000,000
5,126,020
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Electric
,
Revenue
,
2014
A
,
5
%
,
5/15/39
......................................................
4,000,000
4,055,158
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue,
2019
B,
5%,
7/01/44
........................................
20,000,000
20,868,006
Revenue,
2019
B,
4%,
7/01/49
........................................
3,000,000
2,759,874
Revenue,
2019
B,
5%,
7/01/49
........................................
17,475,000
18,085,466
Revenue,
2022
B,
5.5%,
7/01/52
......................................
2,500,000
2,709,918
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group,
Revenue,
2017
A,
5%,
5/01/36
4,000,000
4,224,056
Rhodes
College,
Revenue,
2015,
5%,
8/01/45
............................
1,700,000
1,743,282
Rhodes
College,
Revenue,
2017,
Refunding,
4%,
8/01/40
...................
3,000,000
2,971,438
South
Blount
County
Utility
District
,
Revenue
,
2019
,
Refunding
,
3
%
,
12/01/39
......
2,015,000
1,747,902
f
Tennergy
Corp.
,
Revenue
,
2022
A
,
Mandatory
Put
,
5.5
%
,
12/01/30
..............
55,000,000
58,293,301
Tennessee
Housing
Development
Agency
,
Revenue,
2013
1-C,
4%,
7/01/43
......................................
805,000
807,761
Revenue,
2017-3,
3.65%,
7/01/47
.....................................
610,000
593,654
Revenue,
2018-2,
Refunding,
3.85%,
7/01/42
.............................
1,005,000
992,640
Revenue,
2018-4,
Refunding,
4%,
7/01/43
...............................
5,745,000
5,677,930
West
Knox
Utility
District
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/41
..............
1,000,000
1,013,002
West
Wilson
Utility
District
of
Wilson
County
Tennessee
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/40
......................................................
1,545,000
1,594,209
White
House
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
1/01/34
.............
820,000
780,399
Williamson
County
HB
&
TS
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
9/01/44
.
1,200,000
967,896
299,684,752
Texas
9.9%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
4
%
,
10/01/50
................
5,510,000
4,196,949
Aubrey
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
2/15/52
........
7,500,000
7,197,400
Central
Texas
Turnpike
System
,
Revenue,
2015
B,
Refunding,
5%,
8/15/37
...............................
10,000,000
10,181,150
Revenue,
2015
C,
Refunding,
5%,
8/15/37
...............................
5,000,000
5,073,553
Revenue,
2015
C,
Refunding,
5%,
8/15/42
...............................
20,000,000
20,216,610
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
19,320,180
City
of
Austin
,
Electric
Utility,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
...................
10,000,000
10,229,544
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/38
.......
20,000,000
20,012,112
g
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.625%,
11/01/39
................................................
1,405,000
1,343,098
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
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)
Texas
(continued)
City
of
Austin,
(continued)
g
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
11/01/48
.................................................
$
2,450,000
$
2,285,011
g
City
of
Celina
,
Sutton
Fields
II
Public
Improvement
District
,
Special
Assessment
,
144A,
2019
,
4.25
%
,
9/01/49
...............................................
3,065,000
2,611,533
City
of
Corpus
Christi
,
Utility
System
,
Revenue,
Junior
Lien
,
2015
A
,
5
%
,
7/15/40
...
13,200,000
13,556,286
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
19,000,000
19,584,877
g
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
144A,
2022
A
,
6
%
,
12/01/62
................................
18,040,000
17,691,375
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
9,690,526
City
of
Leander
,
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/38
..................................................
1,275,000
1,030,158
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/44
..................................................
1,460,000
1,088,414
g
City
of
Mesquite
,
Heartland
Town
Center
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5%,
9/01/43
................................................
816,000
816,494
Heartland
Town
Center
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5.125%,
9/01/52
............................................
288,000
285,175
g
City
of
Royse
City
,
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2017,
5%,
9/15/48
........................................................
2,700,000
2,606,805
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.375%,
9/15/39
........................................................
610,000
569,889
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.5%,
9/15/48
........................................................
1,260,000
1,134,584
Clifton
Higher
Education
Finance
Corp.
,
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
4%,
8/15/42
2,150,000
2,104,241
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
5%,
8/15/47
11,500,000
12,398,719
Community
Independent
School
District
,
GO
,
2022
B
,
PSF
Guaranty
,
4
%
,
2/15/50
...
2,750,000
2,674,769
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
4%,
10/01/50
.....
1,640,000
1,332,643
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/32
....
90,000
103,620
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/33
....
100,000
114,709
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/34
....
100,000
114,469
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/35
....
85,000
96,346
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/36
....
85,000
95,480
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/41
....
600,000
594,719
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/46
....
700,000
663,571
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/50
....
650,000
596,180
Dallas
Fort
Worth
International
Airport
,
Revenue
,
2013
D
,
Refunding
,
5.25
%
,
11/01/32
10,000,000
10,094,060
Del
Valle
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
6/15/47
......
7,500,000
7,523,545
g
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
33,600,000
24,721,294
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
15,553,513
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
20,723,562
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn.,
10/01/45
..................................
10,000,000
10,643,564
Revenue,
2018
A,
5%,
10/01/48
.......................................
7,720,000
8,090,160
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2003
B
,
1.5
%
,
5/01/28
....
2,000,000
1,749,748
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group
,
Revenue
,
2015
,
5
%
,
12/01/45
...........................
30,000,000
30,593,451
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien
,
2020
A
,
Refunding
,
AGMC
Insured
,
3.125
%
,
11/15/56
.....................................
5,000,000
3,758,340
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Harris-Waller
Counties
Municipal
Utility
District
No.
4
,
GO,
2022,
5%,
11/01/34
.............................................
$
795,000
$
825,452
GO,
2022,
5%,
11/01/38
.............................................
840,000
847,260
GO,
2022,
5.25%,
11/01/41
..........................................
1,435,000
1,453,272
GO,
2022,
5.5%,
11/01/44
...........................................
2,010,000
2,051,878
GO,
2022,
5.5%,
11/01/48
...........................................
5,445,000
5,509,590
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2.375%,
9/01/31
..........................................
165,000
142,345
GO,
2021,
2.375%,
9/01/32
..........................................
170,000
144,630
GO,
2021,
2.375%,
9/01/33
..........................................
170,000
142,588
GO,
2021,
2.5%,
9/01/34
............................................
180,000
148,259
GO,
2021,
2.5%,
9/01/36
............................................
370,000
285,508
GO,
2021,
2.625%,
9/01/38
..........................................
385,000
284,198
GO,
2021,
3%,
9/01/41
.............................................
375,000
278,075
GO,
2021,
3%,
9/01/46
.............................................
750,000
520,370
GO,
2021,
3%,
9/01/51
.............................................
1,265,000
836,200
g
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
12,625,000
9,482,997
Lamar
Consolidated
Independent
School
District
,
GO,
2018,
PSF
Guaranty,
5%,
2/15/43
..................................
30,000,000
31,559,760
GO,
2023,
4%,
2/15/53
.............................................
5,000,000
4,714,018
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
5%,
5/15/36
............
1,290,000
1,290,789
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
Pre-Refunded,
5%,
5/15/36
8,710,000
8,714,954
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016
A-1,
5%,
4/01/46
........
6,000,000
6,215,806
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
8,500,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
5,356,786
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
10,162,776
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
199,908
Westminster
Manor,
Revenue,
2021,
4%,
11/01/49
.........................
14,400,000
10,632,682
Newark
Higher
Education
Finance
Corp.
,
Abilene
Christian
University
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
4/01/57
...........................................
5,000,000
4,411,963
North
East
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2016
A
,
5
%
,
1/01/41
.........................................................
16,750,000
16,920,208
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
10,000,000
10,012,913
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
19,222,688
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/35
.........
10,000,000
10,307,527
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/38
.........
10,000,000
10,229,625
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/43
.
20,000,000
21,042,386
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/48
.
33,500,000
35,016,501
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Pre-Refunded,
6.5%,
1/01/43
..
25,000,000
26,379,140
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017
B,
Refunding,
5%,
1/01/48
10,000,000
10,365,767
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
25,250,000
26,393,035
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
3,702,834
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
7,500,000
2,359,993
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
6.75%,
9/01/45
......
25,000,000
32,704,162
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,108,495
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/46
......
13,705,000
11,735,546
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/51
......
3,765,000
3,116,284
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/54
......
1,035,000
840,831
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
$
36,500,000
$
35,624,066
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,000,729
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
3,000,209
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013
A
,
5
%
,
10/01/38
...............................................
24,380,000
24,484,281
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
10,388,911
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
4%,
7/01/53
............
3,100,000
2,903,483
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
5%,
7/01/53
............
15,000,000
15,868,540
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
Refunding,
5.25%,
12/01/39
.................................................
10,000,000
10,056,460
Texas
Health
Resources
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
2/15/41
15,165,000
15,646,610
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group,
Revenue,
1994,
FGIC
Insured,
ETM,
6%,
9/01/24
........................................................
1,825,000
1,866,429
Texas
Department
of
Housing
&
Community
Affairs
,
Revenue
,
2023
A
,
GNMA
Insured
,
5.25
%
,
1/01/53
...................................................
14,000,000
14,694,221
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/29
................................
12,715,000
13,323,596
Revenue,
2021,
Refunding,
5%,
12/15/32
................................
10,350,000
10,933,121
Texas
Transportation
Commission
,
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/48
......
6,250,000
1,574,023
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/49
......
5,000,000
1,189,962
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/50
......
5,500,000
1,232,802
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
25,050,173
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2019
A,
4%,
10/15/49
.......................................................
20,000,000
19,617,346
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2022,
5%,
10/15/47
16,050,000
17,803,846
g
Town
of
Little
Elm
,
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/01/41
........................................................
708,000
521,817
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/47
831,000
689,169
Town
of
Ponder
,
Ponder
Public
Improvement
District
No.
1,
Special
Assessment,
2017,
5%,
9/01/45
500,000
486,201
Ponder
Public
Improvement
District
No.
1,
Special
Assessment,
2017,
5%,
9/01/47
865,000
838,462
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
4,935,659
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
3%,
8/15/41
.....................................
790,000
623,399
GO,
Sub.
Lien,
2021,
3%,
8/15/45
.....................................
615,000
466,134
GO,
Sub.
Lien,
2021,
3%,
8/15/51
.....................................
1,570,000
1,134,288
GO,
Sub.
Lien,
2022,
5.625%,
8/15/52
..................................
1,065,000
1,100,087
925,286,449
Utah
1.0%
Central
Utah
Water
Conservancy
District
,
Revenue,
2017
B,
Refunding,
4%,
10/01/37
..............................
2,600,000
2,651,442
Revenue,
2017
B,
Refunding,
4%,
10/01/38
..............................
10,000,000
10,160,284
City
of
Salt
Lake
City
,
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
11,140,000
11,380,867
Airport,
Revenue,
2018
A,
5%,
7/01/48
..................................
13,860,000
14,228,616
Airport,
Revenue,
2018
A,
5.25%,
7/01/48
...............................
10,000,000
10,380,240
Airport,
Revenue,
2021
A,
5%,
7/01/51
..................................
10,000,000
10,363,376
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
41
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Utah
(continued)
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
$
6,000,000
$
6,034,142
University
of
Utah
(The)
,
Revenue
,
2022
A
,
5
%
,
8/01/46
......................
9,645,000
10,646,267
Utah
Infrastructure
Agency
,
Revenue,
2021,
3%,
10/15/26
........................................
550,000
526,852
Revenue,
2021,
4%,
10/15/28
........................................
350,000
345,297
Revenue,
2021,
4%,
10/15/32
........................................
540,000
522,793
Revenue,
2021,
4%,
10/15/38
........................................
500,000
440,528
Revenue,
2021,
4%,
10/15/41
........................................
1,450,000
1,217,993
Revenue,
2021,
3%,
10/15/45
........................................
2,000,000
1,304,153
Revenue,
2022,
5%,
10/15/37
........................................
1,200,000
1,210,300
Revenue,
2022,
5%,
10/15/46
........................................
3,650,000
3,463,078
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
10,496,470
95,372,698
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
4,246,928
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
12/01/36
...........................................
5,000,000
5,208,231
9,455,159
Virginia
0.4%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
2,350,000
2,114,217
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2020
A
,
5
%
,
7/01/60
................................................
19,000,000
20,677,630
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
70,063
Virginia
Small
Business
Financing
Authority
,
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/57
10,000,000
9,998,616
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/39
........................................................
5,520,000
5,199,779
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/51
....................................................
4,000,000
3,428,916
41,489,221
Washington
2.4%
f
Align
Capital
Trust
,
Revenue
,
2020-4A
,
Mandatory
Put
,
3.75
%
,
1/01/26
...........
10,482,247
9,995,809
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
22,170,000
22,698,779
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
10,857,204
Everett
Housing
Authority
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/37
..............
34,480,000
33,094,249
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,005
Port
of
Seattle
,
Revenue,
2018
A,
5%,
5/01/38
........................................
15,000,000
15,434,220
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
3,703,139
Revenue,
2021
C,
Refunding,
5%,
8/01/46
...............................
11,915,000
12,566,970
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
30,934,033
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
2,610,000
2,470,214
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/29
.......................................................
250,000
275,967
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/30
.......................................................
265,000
295,279
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/33
.......................................................
250,000
277,466
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
Washington
Health
Care
Facilities
Authority,
(continued)
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/34
.......................................................
$
300,000
$
280,879
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/40
.......................................................
870,000
858,085
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/45
.......................................................
1,200,000
1,135,329
g
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/48
.......................................................
910,000
842,942
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
23,818,268
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012
A,
5%,
10/01/42
..
10,175,000
10,035,663
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
5%,
10/01/41
..
9,685,000
9,675,465
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Pre-Refunded,
5%,
10/01/41
...................................................
315,000
322,613
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
3,799,039
Washington
State
Convention
Center
Public
Facilities
District
,
Lodging
Tax
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
7/01/43
.......................................
14,855,000
13,563,760
Washington
State
Housing
Finance
Commission
,
Revenue,
2021-1,
A,
3.5%,
12/20/35
...................................
21,387,535
20,089,211
g
Madison
at
Rivers
Edge
Apartments
LLC,
Revenue,
144A,
2021
A,
3.65%,
1/01/37
2,965,000
2,385,909
229,415,497
West
Virginia
0.7%
Berkeley
County
Public
Service
Sewer
District
,
Revenue
,
2016
B
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/36
...............................................
1,000,000
1,053,197
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
12,799,043
Vandalia
Health,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/38
.
3,040,000
3,110,407
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
17,190,000
17,388,895
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
20,868,122
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
5,288,734
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
5,703,952
66,212,350
Wisconsin
4.0%
Public
Finance
Authority
,
g
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
21,085,631
16,792,029
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
3,750,000
2,899,668
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,157,136
g
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
39,000,000
31,396,876
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
5,075,000
4,243,955
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/51
........................................................
5,705,000
4,645,299
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/56
........................................................
2,250,000
1,789,337
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
1,567,201
CFC-SA
LLC,
Revenue,
Senior
Lien,
2022
A,
5%,
2/01/62
...................
10,000,000
9,863,565
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/41
..........
1,000,000
876,292
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/61
..........
10,000,000
7,811,917
f
Duke
Energy
Progress
LLC,
Revenue,
2022
B,
Refunding,
Mandatory
Put,
4%,
10/01/30
.......................................................
2,200,000
2,259,028
EMU
Campus
Living
LLC,
Revenue,
2022
A-1,
BAM
Insured,
5.5%,
7/01/52
......
5,000,000
5,419,836
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
43
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Public
Finance
Authority,
(continued)
EMU
Campus
Living
LLC,
Revenue,
2022
A-1,
BAM
Insured,
5.625%,
7/01/55
....
$
6,620,000
$
7,230,738
g
FAH
Tree
House
LLC,
Revenue,
144A,
2023
A,
6.5%,
8/01/53
................
22,945,000
22,963,595
g
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
42,800,000
42,800,000
g
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
A,
3.8%,
12/01/37
24,375,000
19,683,042
g
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
22,565,000
22,416,744
g
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
B,
7.5%,
12/01/29
.....
2,645,000
2,631,878
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
9/30/51
.................
730,000
601,340
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
3/31/56
.................
30,185,000
24,260,762
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/45
.....
14,000,000
12,523,652
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/39
............................................
4,755,000
4,481,608
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/41
............................................
5,145,000
4,796,145
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
............................................
11,980,000
10,781,268
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/51
............................................
2,000,000
1,750,886
Triad
Educational
Services,
Inc.,
Revenue,
2022,
5.25%,
6/15/52
..............
1,610,000
1,598,738
Triad
Educational
Services,
Inc.,
Revenue,
2022,
5.375%,
6/15/57
.............
1,550,000
1,541,391
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/41
............
1,280,000
1,091,950
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/51
............
10,000
7,838
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/61
............
6,000,000
4,471,501
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/41
...........................................
1,010,000
819,731
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/51
...........................................
2,185,000
1,592,350
f,g
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
...................................................
29,600,000
24,921,326
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn.,
12/15/45
........................................................
20,000,000
6,783,130
Wisconsin
Health
&
Educational
Facilities
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2013
B-2,
4%,
11/15/43
.............
12,045,000
11,539,863
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
14,621,471
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
19,904,456
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/47
....................................................
5,200,000
3,769,071
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/57
....................................................
1,400,000
947,817
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/36
........................................................
530,000
461,338
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/41
........................................................
510,000
423,777
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/45
........................................................
475,000
376,657
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/36
........................................................
775,000
664,603
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/41
........................................................
770,000
628,189
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/45
........................................................
650,000
505,065
Thedacare,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
5,135,000
5,156,596
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/46
......
895,000
703,033
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/51
......
1,335,000
1,016,434
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/55
......
$
1,760,000
$
1,308,074
372,498,196
U.S.
Territories
3.3%
District
of
Columbia
2.2%
District
of
Columbia
,
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,135,368
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
7,000,000
7,008,614
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,958,748
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,535,000
21,113,459
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
25,110,000
25,652,805
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
4,129,971
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
1,000,000
1,001,788
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/54
............
1,905,000
1,892,828
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
4,590,000
4,689,642
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
26,511,050
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2018
A,
Refunding,
5%,
10/01/48
.......................
10,275,000
10,590,179
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.......................
24,750,000
25,606,506
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009
C,
Pre-Refunded,
AGMC
Insured,
6.5%,
10/01/41
..................................................
25,000,000
28,086,310
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
12,743,553
Washington
Metropolitan
Area
Transit
Authority
,
Dedicated
,
Revenue
,
2021
A
,
4
%
,
7/15/43
.........................................................
12,775,000
12,826,236
203,947,057
Puerto
Rico
1.1%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.5%,
7/01/28
.....................................
2,500,000
2,577,786
Revenue,
2007
CC,
5.25%,
7/01/34
....................................
2,385,000
2,401,765
Revenue,
2007
CC,
5.25%,
7/01/36
....................................
11,980,000
12,074,362
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
14,485,000
14,626,241
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
2,725,000
2,746,464
Revenue,
2007
N,
5.25%,
7/01/39
.....................................
110,199
111,197
PR
Custodial
Trust
,
Revenue
,
2002
A
,
5.5
%
,
7/01/29
.........................
3,594,661
3,559,849
Puerto
Rico
Electric
Power
Authority
,
j
Revenue,
2012
A,
5%,
7/01/42
........................................
18,925,000
13,342,125
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
5,780,000
5,806,703
j
Revenue,
XX,
5.25%,
7/01/40
........................................
15,000,000
10,575,000
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
698,767
674,871
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
454,104
285,518
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
776,785
464,158
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
3,500,000
3,550,917
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
27,576,000
26,627,465
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.,
(continued)
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
$
5,593,000
$
5,206,854
104,631,275
Total
U.S.
Territories
....................................................................
308,578,332
Total
Municipal
Bonds
(Cost
$9,400,647,932)
...................................
9,133,858,369
Total
Long
Term
Investments
(Cost
$9,463,027,091)
.............................
9,196,898,099
a
a
a
a
a
Short
Term
Investments
0.9%
Municipal
Bonds
0.9%
Arizona
0.3%
k
Maricopa
County
Pollution
Control
Corp.
,
Arizona
Public
Service
Co.
,
Revenue
,
2009
D
,
Refunding
,
Daily
VRDN
and
Put
,
4.1
%
,
5/01/29
.........................
25,070,000
25,070,000
California
0.0%
†
k
Irvine
Ranch
Water
District
,
Special
Assessment
,
2009
B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
3.05
%
,
10/01/41
..................................
3,800,000
3,800,000
k
University
of
California
,
Revenue
,
2013
AL-3
,
Refunding
,
Daily
VRDN
and
Put
,
3.4
%
,
5/15/48
.........................................................
1,000,000
1,000,000
4,800,000
Colorado
0.0%
†
k
City
&
County
of
Denver
,
COP
,
2008
A-1
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
3.8
%
,
12/01/29
................................
2,100,000
2,100,000
Connecticut
0.0%
†
k
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Yale
University
,
Revenue
,
2001
V-2
,
Daily
VRDN
and
Put
,
2.95
%
,
7/01/36
...........................
400,000
400,000
Georgia
0.1%
k
Development
Authority
of
Monroe
County
(The)
,
Florida
Power
&
Light
Co.
,
Revenue
,
2002
,
Refunding
,
Daily
VRDN
and
Put
,
3.85
%
,
9/01/37
.....................
5,800,000
5,800,000
Massachusetts
0.0%
†
k
Massachusetts
Health
&
Educational
Facilities
Authority
,
President
and
Fellows
of
Harvard
College
,
Revenue
,
R
,
Daily
VRDN
and
Put
,
2.8
%
,
11/01/49
............
2,800,000
2,800,000
Michigan
0.0%
†
k
University
of
Michigan
,
Revenue
,
2012
D-1
,
Daily
VRDN
and
Put
,
3.7
%
,
12/01/24
...
2,400,000
2,400,000
Minnesota
0.2%
k
City
of
Minneapolis
,
Fairview
Health
Services
Obligated
Group
,
Revenue
,
2018
C
,
Refunding
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
11/15/48
....
14,500,000
14,500,000
New
Jersey
0.1%
k
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Virtua
Health
Obligated
Group,
Revenue,
2009
B,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.85%,
7/01/43
.................................
2,900,000
2,900,000
Virtua
Health
Obligated
Group,
Revenue,
2009
C,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.8%,
7/01/43
..................................
3,800,000
3,800,000
6,700,000
New
York
0.1%
k
City
of
New
York
,
GO
,
2020
B-3
,
Daily
VRDN
and
Put
,
3.97
%
,
10/01/46
...........
6,515,000
6,515,000
k
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
3.65
%
,
1/01/34
2,900,000
2,900,000
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
New
York
(continued)
k
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System
,
Revenue
,
2022
DD
,
Refunding
,
Daily
VRDN
and
Put
,
3.97
%
,
6/15/33
...................
$
900,000
$
900,000
k
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured
,
Revenue
,
2019
B-4
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
8/01/42
..........
1,300,000
1,300,000
11,615,000
North
Carolina
0.0%
†
k
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2007
B,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
3.8%,
1/15/38
...........................
2,800,000
2,800,000
Atrium
Health
Obligated
Group,
Revenue,
2018
G,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
3.8%,
1/15/48
..................................
500,000
500,000
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
3.8%,
1/15/48
..................................
2,000,000
2,000,000
5,300,000
Ohio
0.1%
k
County
of
Allen
Hospital
Facilities
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010
C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
3.7
%
,
6/01/34
..................
5,500,000
5,500,000
Pennsylvania
0.0%
†
k
Allegheny
County
Higher
Education
Building
Authority
,
Carnegie
Mellon
University
,
Revenue
,
2008
A
,
Refunding
,
SPA
Bank
of
New
York
Mellon
(The)
,
Daily
VRDN
and
Put
,
3.77
%
,
12/01/37
...............................................
500,000
500,000
Total
Municipal
Bonds
(Cost
$87,485,000)
......................................
87,485,000
Total
Short
Term
Investments
(Cost
$87,485,000
)
................................
87,485,000
a
Total
Investments
(Cost
$9,550,512,091)
99.2%
..................................
$9,284,383,099
Other
Assets,
less
Liabilities
0.8%
.............................................
69,183,443
Net
Assets
100.0%
...........................................................
$9,353,566,542
See
Abbreviations
on
page
59
.
†
Rounds
to
less
than
0.1%
of
net
assets.  
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.  
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.  
c
See
Note
1(c)
regarding
senior
floating
rate
interests.  
d
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).  
e
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.  
f
The
maturity
date
shown
represents
the
mandatory
put
date.  
g
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
April
30,
2023,
the
aggregate
value
of
these
securities
was
$835,598,967,
representing
8.9%
of
net
assets.  
h
The
coupon
rate
shown
represents
the
rate
at
period
end.  
i
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).  
j
See
Note
7
regarding
defaulted
securities.  
k
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.  
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
April
30,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$9,548,256,358
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$9,282,401,889
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
1,981,210
Cash
....................................................................................
914,034
Receivables:
Capital
shares
sold
........................................................................
3,915,656
Interest
.................................................................................
119,959,949
Total
assets
..........................................................................
9,409,172,738
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
33,035,918
Capital
shares
redeemed
...................................................................
14,107,111
Management
fees
.........................................................................
3,530,848
Distribution
fees
..........................................................................
964,958
Transfer
agent
fees
........................................................................
1,241,614
Trustees'
fees
and
expenses
.................................................................
70
Distributions
to
shareholders
.................................................................
2,191,422
Accrued
expenses
and
other
liabilities
...........................................................
534,255
Total
liabilities
.........................................................................
55,606,196
Net
assets,
at
value
.................................................................
$9,353,566,542
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$10,338,980,453
Total
distributable
earnings
(losses)
.............................................................
(985,413,911)
Net
assets,
at
value
.................................................................
$9,353,566,542
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
April
30,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,940,290,497
Shares
outstanding
........................................................................
180,955,015
Net
asset
value
per
share
a
..................................................................
$10.72
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.14
Class
A1:
Net
assets,
at
value
.......................................................................
$5,215,087,376
Shares
outstanding
........................................................................
486,349,553
Net
asset
value
per
share
a
..................................................................
$10.72
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.14
Class
C:
Net
assets,
at
value
.......................................................................
$246,760,430
Shares
outstanding
........................................................................
23,030,855
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$10.71
Class
R6:
Net
assets,
at
value
.......................................................................
$952,886,967
Shares
outstanding
........................................................................
88,805,029
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.73
Advisor
Class:
Net
assets,
at
value
.......................................................................
$998,541,272
Shares
outstanding
........................................................................
93,029,745
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.73
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
year
ended
April
30,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3f)
.............................................................
$56,525
Interest:
Unaffiliated
issuers
........................................................................
385,874,888
Total
investment
income
...................................................................
385,931,413
Expenses:
Management
fees
(Note
3
a
)
...................................................................
43,266,773
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
4,694,183
    Class
A1
...............................................................................
5,592,370
    Class
C
................................................................................
1,850,214
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
1,232,260
    Class
A1
...............................................................................
3,691,784
    Class
C
................................................................................
188,517
    Class
R6
...............................................................................
159,100
    Advisor
Class
............................................................................
750,909
Custodian
fees
(Note
4
)
......................................................................
54,904
Reports
to
shareholders
fees
..................................................................
159,507
Registration
and
filing
fees
....................................................................
370,167
Professional
fees
...........................................................................
224,087
Trustees'
fees
and
expenses
..................................................................
114,212
Other
....................................................................................
1,597,491
Total
expenses
.........................................................................
63,946,478
Expense
reductions
(Note
4
)
...............................................................
(84,652)
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
..............................................
(5,998)
Net
expenses
.........................................................................
63,855,828
Net
investment
income
................................................................
322,075,585
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(202,703,894)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(53,041,256)
Non-controlled
affiliates
(Note
3f)
............................................................
(12,035)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(53,053,291)
Net
realized
and
unrealized
gain
(loss)
............................................................
(255,757,185)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$66,318,400
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
Franklin
Federal
Tax-Free
Income
Fund
Year
Ended
April
30,
2023
Year
Ended
April
30,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$322,075,585
$310,875,375
Net
realized
gain
(loss)
.................................................
(202,703,894)
(12,236,135)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(53,053,291)
(1,316,689,075)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
66,318,400
(1,018,049,835)
Distributions
to
shareholders:
Class
A
.............................................................
(59,671,683)
(50,616,434)
Class
A1
............................................................
(185,449,220)
(183,188,514)
Class
C
.............................................................
(7,860,346)
(9,318,428)
Class
R6
............................................................
(27,609,822)
(12,467,766)
Advisor
Class
........................................................
(38,577,120)
(49,025,669)
Total
distributions
to
shareholders
..........................................
(319,168,191)
(304,616,811)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
67,070,974
386,756,931
Class
A1
............................................................
(892,032,423)
113,876,079
Class
C
.............................................................
(85,671,860)
(159,312,706)
Class
R6
............................................................
207,653,888
541,755,762
Advisor
Class
........................................................
(350,007,043)
(258,749,974)
Total
capital
share
transactions
............................................
(1,052,986,464)
624,326,092
Net
increase
(decrease)
in
net
assets
...................................
(1,305,836,255)
(698,340,554)
Net
assets:
Beginning
of
year
.......................................................
10,659,402,797
11,357,743,351
End
of
year
...........................................................
$9,353,566,542
$10,659,402,797
Franklin
Federal
Tax-Free
Income
Fund
51
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
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.
The
Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
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
on
a
monthly
basis,
after
they
have
been
held
for
8
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
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
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. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
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,
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
or
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
when-issued
or
delayed
delivery
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,
they
may
sell
the
securities
before
the
settlement
date.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
52
franklintempleton.com
Annual
Report
c.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
d.
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
April
30,
2023,
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
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.
e.
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.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from net
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.
f.
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.
g.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
53
franklintempleton.com
Annual
Report
h.
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.
2.
Shares
of
Beneficial
Interest
At
April
3
0
,
202
3
,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value)
.
Transactions
in
the
Fund’s
shares
were
as
follows:
Year
Ended
April
30,
2023
Year
Ended
April
30,
2022
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
80,664,051
$859,023,042
57,323,954
$697,775,073
Shares
issued
in
reinvestment
of
distributions
..........
5,260,782
56,003,480
3,971,105
47,710,353
Shares
issued
on
reorganization
....................
—
—
9,435,472
115,773,245
Shares
redeemed
...............................
(79,661,592)
(847,955,548)
(39,950,701)
(474,501,740)
Net
increase
(decrease)
..........................
6,263,241
$67,070,974
30,779,830
$386,756,931
Class
A1
Shares:
Shares
sold
...................................
13,888,363
$147,952,934
15,054,327
$183,058,258
Shares
issued
in
reinvestment
of
distributions
..........
15,422,978
164,226,746
13,599,254
163,664,895
Shares
issued
on
reorganization
....................
—
—
49,975,706
613,201,912
Shares
redeemed
...............................
(113,136,532)
(1,204,212,103)
(70,691,180)
(846,048,986)
Net
increase
(decrease)
..........................
(83,825,191)
$(892,032,423)
7,938,107
$113,876,079
Class
C
Shares:
Shares
sold
...................................
2,880,634
$30,648,561
3,716,788
$45,280,773
Shares
issued
in
reinvestment
of
distributions
..........
702,806
7,478,018
733,464
8,846,940
Shares
issued
on
reorganization
....................
—
—
1,735,094
21,272,254
Shares
redeemed
a
..............................
(11,633,559)
(123,798,439)
(19,274,981)
(234,712,673)
Net
increase
(decrease)
..........................
(8,050,119)
$(85,671,860)
(13,089,635)
$(159,312,706)
Class
R6
Shares:
Shares
sold
...................................
43,587,106
$465,085,486
54,781,213
$651,782,854
Shares
issued
in
reinvestment
of
distributions
..........
2,537,995
27,058,566
1,026,958
12,186,565
Shares
issued
on
reorganization
....................
—
—
1,013,698
12,438,071
Shares
redeemed
...............................
(26,690,224)
(284,490,164)
(11,382,871)
(134,651,728)
Net
increase
(decrease)
..........................
19,434,877
$207,653,888
45,438,998
$541,755,762
Advisor
Class
Shares:
Shares
sold
...................................
38,621,159
$412,560,439
28,373,850
$343,733,860
Shares
issued
in
reinvestment
of
distributions
..........
3,165,413
33,745,340
3,623,455
43,752,677
Shares
issued
on
reorganization
....................
—
—
5,992,099
73,582,974
Shares
redeemed
...............................
(74,724,075)
(796,312,822)
(60,532,412)
(719,819,485)
Net
increase
(decrease)
..........................
(32,937,503)
$(350,007,043)
(22,543,008)
$(258,749,974)
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
54
franklintempleton.com
Annual
Report
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:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2023,
the
gross
effective
investment
management
fee
rate
was
0.447%
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:
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
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
55
franklintempleton.com
Annual
Report
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
year
:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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
year
ended
April
30,
2023,
the
Fund
paid
transfer
agent
fees
of
$6,022,570, of
which
$2,425,993
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
April
30,
2023,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$70,964
CDSC
retained
..............................................................................
$291,127
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Federal
Tax-Free
Income
Fund
Non-Controlled
Affiliates
Dividends
Franklin
Municipal
Green
Bond
ETF
...................
$
1,993,245
$
—
$
—
$
—
$
(12,035)
$
1,981,210
83,000
$
56,525
Total
Affiliated
Securities
...
$1,993,245
$—
$—
$—
$(12,035)
$1,981,210
$56,525
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
56
franklintempleton.com
Annual
Report
g.
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,
2023.
h.
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
year
ended
April
30,
2023,
these
purchase
and
sale
transactions
aggregated
$680,157,643
and
$537,539,107,
respectively,
with
net
realized
losses
of
$13,625,386.
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
year
ended
April
30,
2023,
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,
2023,
the
capital
loss
carryforwards
were
as
follows:
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2023
and
2022,
was
as
follows:
At
April
30,
2023,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
tax
exempt
income
for
income
tax
purposes
were
as
follows:
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$303,550,254
Long
term
................................................................................
420,277,574
Total
capital
loss
carryforwards
...............................................................
$723,827,828
a
a
Includes
$90,841,159
from
the
merged
Franklin
Florida
Tax-Free
Income
Fund,
Franklin
Kentucky
Tax-Free
Income
Fund
and
Franklin
Tennessee
Municipal
Bond
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations.
2023
2022
Distributions
paid
from:
Ordinary
income
..........................................................
$1
,211,144
$—
Tax
exempt
income
........................................................
317,957,047
304,616,811
$319,168,191
$304,616,811
Cost
of
investments
..........................................................................
$9,552,164,368
Unrealized
appreciation
........................................................................
$189,660,846
Unrealized
depreciation
........................................................................
(457,442,115)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(267,781,269)
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
57
franklintempleton.com
Annual
Report
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities) for
the
year
ended
April
30,
2023,
aggregated
$2,708,891,670 and
$3,688,710,177,
respectively.
7.
Defaulted
Securities
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
April
30,
2023,
the
aggregate
value
of
these
securities
was
$23,917,125,
representing
0.3%
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
Schedule
of
Investments.
8.
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
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
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
year
ended
April
30,
2023,
the Fund
did
not
use
the
Global
Credit
Facility.
9.
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:
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.
A
summary
of
inputs
used
as
of
April
30,
2023,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
Distributable
earnings:
Undistributed
tax
exempt
income
.................................................................
$8,571,163
5.
Income
Taxes
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
58
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
year.
10.
New
Accounting
Pronouncements
In
March
2020,
the 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.
In
January
2021
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
11.
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.
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
1,981,210
$
—
$
—
$
1,981,210
Corporate
Bonds
........................
—
—
36,095,986
36,095,986
Senior
Floating
Rate
Interests
...............
—
—
24,962,534
24,962,534
Municipal
Bonds
.........................
—
9,133,858,369
—
9,133,858,369
Short
Term
Investments
...................
—
87,485,000
—
87,485,000
Total
Investments
in
Securities
...........
$1,981,210
$9,221,343,369
$61,058,520
$9,284,383,099
9.
Fair
Value
Measurements
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
59
franklintempleton.com
Annual
Report
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
ETF
Exchange-Traded
Fund
ETM
Escrowed
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co.
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Inter-Bank
Offered
Rate
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SPA
Standby
Purchase
Agreement
Franklin
Federal
Tax-Free
Income
Fund
Report
of
Independent
Registered
Public
Accounting
Firm
60
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
Federal
Tax-Free
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Federal
Tax-Free
Income
Fund
(the
"Fund")
as
of
April
30,
2023,
the
related
statement
of
operations
for
the
year
ended
April
30,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2023,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
April
30,
2023,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2023
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
April
30,
2023
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
June
16,
2023
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Federal
Tax-Free
Income
Fund
Tax
Information
(unaudited)
61
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amount,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amount,
for
the
fiscal
year
ended
April
30,
2023:
Pursuant
to:
Amount
Reported
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$317,957,047
Franklin
Federal
Tax-Free
Income
Fund
Board
Members
and
Officers
62
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Fund,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1982
118
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
118
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
118
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Federal
Tax-Free
Income
Fund
63
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2005
and
Lead
Independent
Trustee
since
2019
118
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
118
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
118
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Federal
Tax-Free
Income
Fund
64
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
110
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2007
129
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Trustee
Since
2013
118
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ben
Barber
(1969)
Vice
President
Since
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Independent
Board
Members
(continued)
Franklin
Federal
Tax-Free
Income
Fund
65
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
June
2023
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Global
Compliance
of
Franklin
Templeton
(since
2020);
Chief
Compliance
Officer
of
Legg
Mason
Partners
Fund
Advisor,
LLC
(since
2006);
Chief
Compliance
Officer
of
certain
funds
associated
with
Legg
Mason
&
Co.
or
its
affiliates
(since
2006);
formerly
,
Director
of
Global
Compliance
at
Legg
Mason
(2006
to
2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005
to
2020).
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
June
2023
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
66
franklintempleton.com
Annual
Report
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
67
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
FEDERAL
TAX-FREE
INCOME
FUND
(Fund)
At
an
in-person
meeting
held
on
April
18,
2023
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-party
servicing
arrangements.
The
Board
acknowledged
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement
and
investments
to
promote
alternative
investing.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
68
franklintempleton.com
Annual
Report
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2022.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
in
the
first
(best)
quintile
and
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-related
attributes
of
the
Fund
(e.g.
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
for
each
other
fund
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
12
other
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
above
the
median
and
in
the
fifth
quintile
(most
expensive)
of
its
Expense
Group,
but
its
actual
total
expense
ratio
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2022,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
69
franklintempleton.com
Annual
Report
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
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
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
Schedule
of
Investments
The
Fund
files
a
complete
Schedule
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,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
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
(to
the
extent
received
by
mail)
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
A
06/23
©
2023
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.
Annual
Report
and
Shareholder
Letter
Franklin
Federal
Tax-Free
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(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.
 
 
(a)      Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $70,239 for the fiscal year ended April 30, 2023 and $73,023 for the fiscal year ended April 30, 2022.
 
(b)      Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
 
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  
 
(c)      Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
 
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended April 30, 2023, and $0 for the fiscal year ended April 30, 2022. The services for which these fees were paid included global access to tax platform International Tax View.
 
(d)      All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended April 30, 2023 and $5,296 for the fiscal year ended April 30, 2022. The services for which these fees were paid include review of materials provided to the fund Board in connection with the investment management contract renewal process.
 
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $75,711 for the fiscal year ended April 30, 2023 and $243,743 for the fiscal year ended April 30, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge, fees in connection with a license for accounting and business knowledge platform Viewpoint and professional fees in connection with SOC 1 Reports.
 
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
 
      (i)   pre-approval of all audit and audit related services;
 
      (ii)  pre-approval of all non-audit related services to be provided to the Fund by the auditors;
 
      (iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
 
      (iv)  establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
 
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
 
(f) No disclosures are required by this Item 4(f).
 
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $145,711 for the fiscal year ended April 30, 2023 and $249,039 for the fiscal year ended April 30, 2022.
 
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
 
(i) N/A
 
 
(j) 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. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                             N/A
 
 
Item 13. Exhibits.
 
(a)(1) 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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
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  June 28, 2023
 
 
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  June 28, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  June 28, 2023