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)
 
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 4/30
 
Date of reporting period: 4/30/21
 
 
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,
2021
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annual
report
1
Shareholder
Letter
Dear
Shareholder:
During
the
12
months
ended
April
30,
2021,
the
novel
coronavirus
(COVID-19)
pandemic
caused
the
U.S.
economy
to
contract
in
2020’s
first
half.
For
the
remainder
of
2020,
the
economy
recovered
substantially
based
on
increased
business
and
residential
investment
and
consumer
spending.
U.S.
economic
growth
accelerated
during
2021’s
first
quarter
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
boosted
consumer
spending.
Before
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
support
U.S.
economic
activity,
lowered
the
federal
funds
rate
twice
in
March
2020
and
implemented
broad
quantitative
easing
measures
to
support
credit
markets.
During
the
reporting
period,
the
Federal
Reserve
held
its
key
rate
unchanged
at
0.25%,
but
it
continued
quantitative
easing
and
adjusted
its
policy
in
August
2020
to
allow
more
flexibility
to
keep
interest
rates
low,
while
maintaining
a
2%
average
inflation
target.
During
the
12-month
period,
municipal
bonds
delivered
positive
total
returns
as
investors
were
attracted
to
tax-free
income
in
a
declining
interest-rate
environment.
Factors
contributing
to
this
positive
investment
environment
for
municipals
included
relatively
low
inflation,
interest-rate
declines
and
actions
by
the
Federal
Reserve
to
support
the
municipal
bond
market.
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
experts.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Federal
Tax-Free
Income
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
April
30,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Franklin
Federal
Tax-Free
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
9
Financial
Highlights
and
Statement
of
Investments
10
Financial
Statements
45
Notes
to
Financial
Statements
49
Report
of
Independent
Registered
Public
Accounting
Firm
57
Tax
Information
58
Board
Members
and
Officers
59
Shareholder
Information
64
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,
2021.
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,
increased
from
$11.60
on
April
30,
2020,
to
$12.31
on
April
30,
2021.
The
Fund’s
Class
A
shares
paid
dividends
totaling
32.6449
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
6
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.40%
based
on
an
annualization
of
April’s
2.5539
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.79
on
April
30,
2021.
An
investor
in
the
2021
maximum
federal
personal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.05%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Municipal
Bond
Market
Overview
Over
the
past
12
months
ended
April
30,
2021,
the
novel
coronavirus
(COVID-19)
pandemic
has
reshaped
economies
across
the
world
as
some
countries
shut
down
large
portions
of
their
economies
through
social
distancing
mandates
that
contained,
in
some
instances,
stay-at-home
orders.
Beginning
in
March
2020,
financial
markets
entered
a
period
of
extreme
stress
where
even
historically
liquid
assets,
including
U.S.
Treasuries
(USTs),
saw
profound
dislocations
expanding
bid/ask
spreads
to
historic
highs.
In
the
U.S.,
gross
domestic
product
had
its
largest
single-
quarter
contraction
in
history
as
it
fell
31.4%
in
the
second
quarter
of
2020.
Starting
in
April
2020,
fixed
income
market
sectors—including
municipal
(muni)
bonds—began
the
slow
process
of
recovery
following
swift
policy
responses
from
both
monetary
and
fiscal
authorities.
Through
the
summer
of
2020,
infection
rates
fell
across
the
U.S.,
allowing
some
states
to
begin
the
process
of
reopening
parts
of
their
economies.
However,
starting
in
the
fall,
new
cases
and
hospitalizations
increased
to
all-time
highs.
The
virus
spread
to
areas
in
the
U.S.
that
had
not
seen
large
numbers
of
infections,
causing
some
states
to
slow
or
abandon
their
reopening
plans.
This
was
tempered
by
the
emergency
approval
of
COVID-19
vaccines
from
multiple
pharmaceutical
manufacturers
by
the
U.S.
Food
and
Drug
Administration
in
December
2020
with
plans
to
provide
mass
inoculations
in
the
first
half
of
2021.
As
the
vaccination
Credit
Quality
Composition
*
4/30/21
Ratings
%
of
Total
Investments
AAA
6.03%
AA
42.77%
A
30.84%
BBB
10.02%
Below
Investment
Grade
1.18%
Refunded
7.36%
Not
Rated
1.80%
Cash
&
Cash
Equivalents
0.00%
**
*
Ratings
shown
are
assigned
by
one
or
more
Nationally
Recognized
Statistical
Rating
Organizations
(NRSRO),
such
as
Standard
&
Poor's,
Moody’s
and
Fitch.
When
ratings
from
multiple
agencies
are
available,
the
highest
is
used,
consistent
with
the
portfolio
investment
process.
Ratings
reflect
an
NRSRO's
opinion
of
an
issuer's
creditworthiness
and
typically
range
from
AAA
(highest)
to
D
(lowest).
The
Refunded
category
consists
of
refunded
bonds
secured
by
U.S.
government
or
other
high-
quality
securities.
The
Not
Rated
category
consists
of
ratable
securities
that
have
not
been
rated
by
an
NRSRO.
The
Not
Applicable
category
consists
of
third-party
ETFs
and
securities
that
only
have
a
short-term
rating
and
are
not
cash
equivalents.
Cash
includes
equivalents,
which
may
be
rated.
**
Rounds
to
less
than
0.01%.
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
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Annual
Report
program
progressed,
case
rates
and
hospitalizations
dropped
significantly,
allowing
the
resumption
of
the
reopening
process
including
a
return
to
in-person
schooling.
By
the
end
of
April
2021,
approximately
one-third
of
the
U.S.
adult
population
had
been
fully
immunized.
Valuations
in
the
muni
bond
market
improved
starting
in
April
2020
amid
strong
technical
conditions.
After
seeing
record
outflows
in
March
and
April
of
2020,
funds
flowed
back
into
muni
bond
retail
vehicles
creating
significant
demand
for
bonds.
These
flows
outstripped
new
issuance
of
tax-
exempt
bonds
as
many
issuers
turned
to
the
taxable
muni
bond
market
for
refundings
and
new
issuance.
Ratios
of
muni
bond
yields
versus
duration-matched
USTs
improved
from
their
all-time
highs
seen
in
March
2020
throughout
the
remainder
of
2020
and
into
2021.
Although
these
ratios
moved
higher
in
February
2021
as
UST
yields
rose
sharply,
they
more
than
recovered
in
March
and
April
of
2021.
Despite
the
recovery,
the
rise
in
UST
yields
put
pressure
on
muni
bond
absolute
returns
given
the
longer-duration
profile
of
the
sector.
State
and
local
muni
bond
issuers
projected
severe
budget
deficits
for
2020
and
going
forward
as
they
anticipated
tax
receipts
and
usage
fees
falling
and
outlays
for
social
programs
such
as
health
care
and
unemployment
benefits
rising
strongly.
By
the
end
of
2020,
many
of
these
deficit
projection
fears
proved
unfounded
as
consumer
spending
recovered
more
quickly
than
anticipated,
leading
to
higher
sales
tax
collections.
A
strong
U.S.
housing
market
also
provided
additional
support.
In
March
2021,
the
U.S.
federal
government
passed
a
$1.9
trillion
additional
fiscal
spending
bill,
providing
large
one-time
cash
payments
to
individuals
and
continuation
of
enhanced
unemployment
benefits.
Included
in
this
package
was
$350
billion
worth
of
grants
to
state
and
local
governments
further
supporting
budgets
and
improving
the
credit
profile
of
the
muni
sector
as
a
whole.
The
Biden
administration
has
also
announced
additional
spending
programs
that
would
partially
be
paid
for
with
increased
tax
rates
on
wealthy
individuals.
Although
the
final
size
of
the
programs
had
not
been
decided,
we
believe
there
could
be
significant
implications
for
the
muni
market,
including
additional
issuance
for
infrastructure
projects
and
the
potential
for
increased
demand
for
tax-exempt
sources
of
income.
Another
challenge
facing
the
muni
market
is
the
rise
of
UST
rates
and
increased
volatility
across
fixed
income
sectors.
Historically,
muni
yields
are
slow
to
respond
to
fast-
rising
UST
yields
and
fund
flows
tend
to
slow
during
times
of
higher
volatility.
The
Investment
Company
Institute
(ICI)
reported
net
inflows
of
approximately
$9
billion
into
muni
bond
retail
vehicles
in
April
2021.
For
the
12-month
period,
muni
bond
retail
vehicles
had
approximately
$98.7
billion
of
net
inflows,
according
to
the
ICI.
For
the
12-month
period,
U.S.
fixed
income
sectors
broadly
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+45.98%
total
return
for
the
period.
3
Investment-grade
muni
bonds,
as
measured
by
the
Bloomberg
Barclays
Municipal
Bond
Index,
posted
a
+7.75%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
Barclays
U.S.
Treasury
Index,
posted
a
-4.32%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Corporate
Bond
Index,
posted
a
+4.46%
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
Portfolio
Composition
4/30/21
%
of
Total
Investments
Transportation
19.21%
Health
Care
17.82%
Utilities
14.50%
Special
Tax
10.13%
Lease
9.23%
Refunded
7.36%
Local
5.42%
Education
4.81%
Industrial
Dev.
Revenue
and
Pollution
Control
4.66%
State
General
Obligation
4.24%
Housing
2.05%
Other
Revenue
Bonds
0.57%
Cash
&
Cash
Equivalents
0.00%*
*
Rounds
to
less
than
0.01%.  
3.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Annual
Report
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,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
April
30,
2021
Franklin
Federal
Tax-Free
Income
Fund
6
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
4/30/21
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
returns
include
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
A
3,4
1-Year
+9.01%
+4.92%
5-Year
+16.58%
+2.33%
10-Year
+54.38%
+4.04%
Advisor
1-Year
+9.27%
+9.27%
5-Year
+17.63%
+3.30%
10-Year
+56.60%
+4.59%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.40%
4.05%
1.17%
1.98%
Advisor
2.74%
4.63%
1.46%
2.47%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
See
page
8
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
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
(5/1/11–4/30/21)
Advisor
Class
(5/1/11–4/30/21)
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
8
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.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
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.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
Performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
April
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
4/30/21.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2021
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Barclays
Municipal
Bond
Index
is
a
market
value
weighted
index
engineered
for
the
long-term
tax-exempt
bond
market.
To
be
included
in
the
index,
bonds
must
be
fixed
rate,
have
at
least
one
year
to
final
maturity
and
be
rated
investment
grade
(Baa3/BB-
or
higher)
by
at
least
two
of
the
following
agencies:
Moody’s,
Standard
&
Poor’s
and
Fitch.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/20–4/30/21)
Share
Class
Net
Investment
Income
A
$0.326449
A1
$0.344702
C
$0.278055
R6
$0.361155
Advisor
$0.356833
Total
Annual
Operating
Expenses
9
Share
Class
A
0.77%
Advisor
0.52%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
9
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.
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
11/1/20
Ending
Account
Value
4/30/21
Expenses
Paid
During
Period
11/1/20–4/30/21
1,2
Ending
Account
Value
4/30/21
Expenses
Paid
During
Period
11/1/20–4/30/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,038.30
$3.93
$1,020.94
$3.90
0.78%
A1
$1,000
$1,039.00
$3.18
$1,021.68
$3.15
0.63%
C
$1,000
$1,036.20
$5.96
$1,018.94
$5.91
1.18%
R6
$1,000
$1,039.70
$2.47
$1,022.38
$2.45
0.49%
Advisor
$1,000
$1,039.50
$2.67
$1,022.18
$2.65
0.53%
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,
Year
Ended
April
30,
2019
a
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
............................................
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
....................................
0.71
(0.22)
0.19
Total
from
investment
operations
.............................................
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
...................................................
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
year
................................................
$12.31
$11.60
$11.82
Total
return
d
............................................................
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
..............................................................
0.78%
g
0.77%
0.78%
Net
investment
income
....................................................
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..............................................
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
.....................................................
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
Year
Ended
April
30,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.60
$11.82
$11.68
$12.02
$12.48
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.35
0.37
0.42
0.44
0.47
Net
realized
and
unrealized
gains
(losses)
...........
0.70
(0.22)
0.16
(0.34)
(0.47)
Total
from
investment
operations
....................
1.05
0.15
0.58
0.10
Less
distributions
from:
Net
investment
income
..........................
(0.34)
(0.37)
(0.44)
(0.44)
(0.46)
Net
asset
value,
end
of
year
.......................
$12.31
$11.60
$11.82
$11.68
$12.02
Total
return
c
...................................
9.17%
1.22%
5.06%
0.85%
0.01%
Ratios
to
average
net
assets
Expenses
.....................................
0.63%
d,e
0.62%
d
0.63%
d
0.63%
0.62%
Net
investment
income
...........................
2.89%
3.11%
3.60%
3.66%
3.82%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$6,919,289
$6,833,018
$7,821,881
$8,616,659
$9,342,715
Portfolio
turnover
rate
............................
16.18%
20.23%
14.58%
16.46%
13.86%
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,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.59
$11.81
$11.68
$12.01
$12.47
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.29
0.31
0.35
0.37
0.40
Net
realized
and
unrealized
gains
(losses)
...........
0.70
(0.22)
0.15
(0.32)
(0.47)
Total
from
investment
operations
....................
0.99
0.09
0.50
0.05
(0.07)
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.31)
(0.37)
(0.38)
(0.39)
Net
asset
value,
end
of
year
.......................
$12.30
$11.59
$11.81
$11.68
$12.01
Total
return
c
...................................
8.58%
0.67%
4.39%
0.37%
(0.55)%
Ratios
to
average
net
assets
Expenses
.....................................
1.18%
d,e
1.17%
d
1.18%
d
1.18%
1.17%
Net
investment
income
...........................
2.35%
2.56%
3.05%
3.11%
3.27%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$543,196
$657,344
$841,909
$1,220,402
$1,411,391
Portfolio
turnover
rate
............................
16.18%
20.23%
14.58%
16.46%
13.86%
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
13
a
Year
Ended
April
30,
Year
Ended
April
30,
2018
a
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.61
$11.83
$11.69
$12.03
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.37
0.39
0.44
0.34
Net
realized
and
unrealized
gains
(losses)
........................
0.70
(0.22)
0.15
(0.38)
Total
from
investment
operations
.................................
1.07
0.17
0.59
(0.04)
Less
distributions
from:
Net
investment
income
.......................................
(0.36)
(0.39)
(0.45)
(0.30)
Net
asset
value,
end
of
year
....................................
$12.32
$11.61
$11.83
$11.69
Total
return
d
................................................
9.31%
1.37%
5.19%
(0.32)%
Ratios
to
average
net
assets
e
Expenses
f
..................................................
0.49%
g
0.49%
g
0.49%
g
0.49%
Net
investment
income
........................................
3.00%
3.24%
3.74%
3.80%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$294,727
$196,774
$177,983
$365,406
Portfolio
turnover
rate
.........................................
16.18%
20.23%
14.58%
16.46%
a
For
the
period
August
1,
2017
(effective
date)
to
April
30,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
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.
14
a
Year
Ended
April
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.61
$11.83
$11.69
$12.03
$12.49
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.36
0.38
0.43
0.45
0.48
Net
realized
and
unrealized
gains
(losses)
...........
0.71
(0.22)
0.16
(0.33)
(0.47)
Total
from
investment
operations
....................
1.07
0.16
0.59
0.12
0.01
Less
distributions
from:
Net
investment
income
..........................
(0.36)
(0.38)
(0.45)
(0.46)
(0.47)
Net
asset
value,
end
of
year
.......................
$12.32
$11.61
$11.83
$11.69
$12.03
Total
return
....................................
9.27%
1.33%
5.15%
0.95%
0.11%
Ratios
to
average
net
assets
Expenses
.....................................
0.53%
c,d
0.52%
c
0.53%
c
0.53%
0.52%
Net
investment
income
...........................
2.98%
3.21%
3.70%
3.76%
3.92%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,829,553
$1,465,542
$1,210,861
$1,207,490
$1,633,602
Portfolio
turnover
rate
............................
16.18%
20.23%
14.58%
16.46%
13.86%
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,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
A
Shares
a
Value
A
Management
Investment
Companies
0.0%
Capital
Markets
0.0%
a
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............................
83,000
$
2,251,375
Total
Management
Investment
Companies
(Cost
$2,255,733)
.....................
2,251,375
a
Principal
Amount
a
a
a
a
a
Municipal
Bonds
99.6%
Alabama
1.4%
Alabama
Incentives
Financing
Authority
,
Revenue
,
2012-A
,
Pre-Refunded
,
5
%
,
9/01/42
$
14,300,000
15,197,906
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
19,887,425
b
Black
Belt
Energy
Gas
District
,
Revenue
,
2021
A
,
Refunding
,
Mandatory
Put
,
4
%
,
12/01/31
........................................................
23,000,000
28,531,215
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
11,300,000
12,137,877
Chilton
County
Health
Care
Authority
,
Revenue
,
2015
A
,
5
%
,
11/01/40
............
8,425,000
9,611,848
c
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
10,000,000
10,357,099
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Obligated
Group,
Revenue,
2020
B,
4%,
6/01/45
..........................
3,500,000
4,074,776
Obligated
Group,
Revenue,
2020
B,
AGMC
Insured,
3%,
6/01/50
..............
8,530,000
9,066,115
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2017
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
12/01/45
..............................................
10,500,000
13,068,406
b
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
10/01/28
.....................................................
13,000,000
15,445,026
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
6,156,226
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue,
2013
B,
Pre-Refunded,
5%,
1/01/43
............................
8,000,000
8,649,355
Revenue,
2016
B,
Refunding,
5%,
1/01/43
...............................
10,000,000
12,135,134
164,318,408
Alaska
0.6%
Alaska
Industrial
Development
&
Export
Authority
,
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2011
A
,
5
%
,
10/01/40
.........................
10,000,000
10,175,819
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
18,398,717
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
14,663,527
City
of
Anchorage
,
Electric
,
Revenue,
Senior
Lien
,
2014
A
,
Pre-Refunded
,
5
%
,
12/01/41
........................................................
8,875,000
10,346,768
State
of
Alaska
,
International
Airports
System
,
Revenue
,
2010
C
,
5
%
,
10/01/33
.....
12,565,000
12,592,792
66,177,623
Arizona
2.5%
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......................................................
2,200,000
2,536,132
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/50
.......................................................
2,500,000
2,873,065
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
9,000,000
10,733,678
b
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2019
,
Mandatory
Put
,
5
%
,
6/03/24
......................................................
15,000,000
17,051,112
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
17,371,330
City
of
Mesa
,
Utility
System
,
Revenue
,
2012
,
4
%
,
7/01/36
.....................
19,000,000
19,651,269
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
28,547,872
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/49
........................
16,000,000
19,558,811
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
14,985,000
16,251,295
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)
Arizona
(continued)
City
of
Phoenix
Civic
Improvement
Corp.,
(continued)
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
........................................................
$
6,000,000
$
8,380,112
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
........................................................
5,000,000
7,162,810
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
........................................................
9,860,000
14,365,763
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
11,171,476
Glendale
Municipal
Property
Corp.
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.....
15,500,000
16,537,150
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
A,
4%,
1/01/44
...............
25,000,000
28,976,107
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
10,000,000
11,394,346
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/36
......
5,000,000
5,632,027
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.
,
Revenue
,
2009
A
,
Refunding
,
3.6
%
,
2/01/40
............................................
19,500,000
21,584,640
Pinal
County
Electric
District
No.
3
,
Revenue
,
2011
,
Pre-Refunded
,
5.25
%
,
7/01/36
..
10,000,000
10,081,825
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
11,346,247
281,207,067
Arkansas
0.5%
Arkansas
Development
Finance
Authority
,
Baptist
Health
Obligated
Group,
Revenue,
2019,
5%,
12/01/47
................
3,025,000
3,711,798
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/40
........................................................
1,100,000
1,374,265
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/44
........................................................
5,000,000
6,184,715
Bentonville
School
District
No.
6
,
GO
,
B
,
Refunding
,
4
%
,
6/01/47
................
27,935,000
31,542,249
University
of
Arkansas
,
Revenue,
2017,
5%,
11/01/47
........................................
6,500,000
7,986,799
Revenue,
2019
A,
Refunding,
5%,
11/01/49
..............................
3,000,000
3,733,639
54,533,465
California
5.8%
c
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
18,594,236
c
California
Community
Housing
Agency
,
Brio
Apartments
&
Next
on
Lex
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A1
,
4
%
,
2/01/56
........................
25,000,000
27,771,987
California
Infrastructure
&
Economic
Development
Bank
,
Academy
of
Motion
Picture
Arts
and
Sciences
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
11/01/29
...........................................
3,000,000
3,930,570
State
of
California
Department
of
Transportation
Seismic
Surcharge,
Revenue,
First
Lien,
2003
A,
Pre-Refunded,
AMBAC
Insured,
5%,
7/01/33
.................
24,500,000
31,341,674
California
State
Public
Works
Board
,
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/28
............................
13,030,000
13,592,475
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/29
............................
21,000,000
21,906,522
Revenue,
2012
A,
Refunding,
5%,
4/01/30
...............................
18,000,000
18,768,578
Revenue,
2012
A,
Refunding,
5%,
4/01/33
...............................
12,475,000
13,005,329
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
4,323,393
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
11,636,164
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/39
...............................
7,500,000
4,505,223
c
CSCDA
Community
Improvement
Authority
,
Jefferson
Platinum
Triangle
Apartments
,
Revenue
,
144A,
2021
A-1
,
2.875
%
,
8/01/41
..............................
3,125,000
3,113,021
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
20,000,000
23,124,606
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
15,475,000
17,971,806
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)
Foothill-Eastern
Transportation
Corridor
Agency,
(continued)
Revenue,
2013
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
$
20,000,000
$
24,003,874
Revenue,
Senior
Lien,
2021
A,
Refunding,
4%,
1/15/46
.....................
25,560,000
30,070,083
Jefferson
Union
High
School
District
,
GO,
D,
Pre-Refunded,
Zero
Cpn.,
8/01/35
...............................
10,500,000
3,353,101
GO,
D,
Pre-Refunded,
Zero
Cpn.,
8/01/40
...............................
10,000,000
2,109,012
GO,
D,
Pre-Refunded,
Zero
Cpn.,
8/01/41
...............................
13,590,000
2,635,702
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2013
B
,
5
%
,
7/01/31
.........................................................
20,000,000
22,016,112
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
20,489,141
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/31
............................
2,055,000
1,696,886
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/32
............................
7,830,000
6,290,278
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/33
............................
7,660,000
5,977,651
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,286,563
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,303,424
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,643,914
COP,
2020,
Refunding,
4%,
9/15/28
....................................
2,095,000
2,316,739
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/36
......
20,000,000
13,219,808
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
38,000,000
46,364,378
Revenue,
Second
Series,
2019
E,
5%,
5/01/50
............................
1,500,000
1,829,583
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn.,
1/01/23
......................
7,000,000
6,979,146
Revenue,
Senior
Lien,
2014
A,
Refunding,
5%,
1/15/34
.....................
50,000,000
56,584,780
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
12,216,985
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
50,000,000
56,211,195
San
Mateo
Union
High
School
District
,
GO,
2011
A,
Zero
Cpn.,
9/01/33
.......................................
6,065,000
6,154,610
GO,
2011
A,
Zero
Cpn.,
9/01/41
.......................................
20,000,000
23,092,526
Santa
Ana
Unified
School
District
,
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/35
...........................
10,000,000
7,346,902
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/36
...........................
18,865,000
13,437,036
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/37
...........................
10,000,000
6,897,651
Santa
Monica-Malibu
Unified
School
District
,
GO
,
A
,
4
%
,
8/01/44
...............
9,360,000
10,952,610
State
of
California
,
GO,
5.9%,
4/01/23
.................................................
605,000
619,321
GO,
2002,
NATL
Insured,
5%,
10/01/32
.................................
20,000
20,074
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/29
....................
10,000,000
8,826,766
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/30
....................
20,845,000
17,866,606
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/31
....................
20,000,000
16,666,238
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/32
....................
10,730,000
8,706,833
655,771,112
Colorado
3.0%
City
&
County
of
Denver
,
Revenue,
2018
A-1,
5%,
8/01/48
......................................
39,690,000
46,965,927
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/35
.................................
2,000,000
1,281,130
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/36
.................................
2,500,000
1,527,370
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/37
.................................
2,455,000
1,430,672
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/38
.................................
2,000,000
1,113,483
Airport
System,
Revenue,
1992-C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
4,354,986
Airport
System,
Revenue,
1992-C,
NATL
Insured,
6.125%,
11/15/25
............
4,410,000
4,421,520
Airport
System,
Revenue,
2013
B,
5.25%,
11/15/33
........................
16,405,000
18,317,610
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)
City
&
County
of
Denver,
(continued)
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
..................
$
12,000,000
$
14,844,611
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/43
..................
11,000,000
13,469,256
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
10,000,000
12,170,927
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/48
...............
26,000,000
32,100,814
Colorado
Health
Facilities
Authority
,
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/41
.......................................................
30,505,000
35,737,096
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
12,000,000
14,607,055
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/15/43
.......................................................
30,000,000
35,111,109
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/41
...
5,000,000
5,784,843
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/44
...
10,200,000
11,756,735
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
17,700,000
21,813,333
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
4,930,000
5,496,069
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
1,131,643
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
3,000,000
3,371,170
Sisters
of
Charity
of
Leavenworth
Health
System,
Inc.
Obligated
Group,
Revenue,
2019
B,
Refunding,
4%,
1/01/40
.....................................
10,000,000
11,810,408
Eagle
River
Water
and
Sanitation
District
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
........................................................
1,250,000
1,465,629
Park
Creek
Metropolitan
District
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
......
2,875,000
3,493,810
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
31,016,228
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/39
........
1,000,000
1,306,150
Sales
Tax,
Revenue,
2012
A,
Pre-Refunded,
5%,
11/01/32
...................
10,000,000
10,722,377
346,621,961
Connecticut
0.1%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
..........
3,000,000
3,457,539
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/39
..........
5,750,000
6,593,138
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
2,574,744
State
of
Connecticut
,
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,650,000
1,955,896
Special
Tax,
2020
A,
5%,
5/01/40
......................................
2,000,000
2,560,257
17,141,574
Delaware
0.0%
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
1,243,893
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,660,139
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
1,226,223
4,130,255
Florida
6.0%
Broward
County
Housing
Finance
Authority
,
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.65%,
11/01/22
......................
165,000
165,618
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.7%,
11/01/29
.......................
225,000
225,945
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/31
......
1,500,000
1,849,413
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/32
......
1,100,000
1,350,999
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
19,543,013
Revenue,
Senior
Lien,
2019
B,
5%,
7/01/49
..............................
17,000,000
21,230,293
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)
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/53
.......................................
$
9,235,000
$
10,308,514
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
12,342,523
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
12,650,693
City
of
Deltona
,
Utility
System
,
Revenue
,
2013
,
Pre-Refunded
,
AGMC
Insured
,
5.125
%
,
10/01/39
........................................................
5,000,000
5,588,749
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/36
..........................
7,150,000
8,877,932
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
31,640,000
39,755,021
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
5
%
,
11/01/50
.....................................................
15,000,000
18,152,291
City
of
Miami
Beach
,
GO,
2019,
Refunding,
4%,
5/01/44
.....................................
15,000,000
17,485,837
Revenue,
2015
A,
5%,
9/01/40
........................................
11,000,000
12,899,192
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
9/01/50
........................................
3,780,000
4,160,651
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
8/15/42
...................
15,000,000
18,008,758
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
17,268,196
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/45
..................................................
2,000,000
2,312,849
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/50
..................................................
3,000,000
3,737,768
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/35
............
755,000
511,434
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/36
............
800,000
518,804
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/37
............
800,000
495,815
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/38
............
1,050,000
620,799
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/39
............
1,000,000
563,936
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/49
............
5,150,000
1,852,986
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
16,897,099
County
of
Miami-Dade
,
Aviation,
Revenue,
2019
A,
5%,
10/01/49
................................
22,500,000
27,502,070
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
7,000,000
8,206,321
Water
&
Sewer
System,
Revenue,
2013
A,
Pre-Refunded,
5%,
10/01/42
.........
20,000,000
21,378,832
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/44
....................
27,500,000
32,599,413
County
of
Osceola
,
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/44
.................
2,000,000
2,474,354
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/49
.................
2,500,000
3,073,654
County
of
Seminole
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/40
.....
8,500,000
9,894,150
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/34
........................................................
2,650,000
3,370,930
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
........................................................
3,900,000
4,934,542
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/37
........................................................
6,015,000
7,587,657
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
........................................................
18,985,000
21,676,765
Florida
Municipal
Loan
Council
,
Revenue
,
2011
D
,
AGMC
Insured
,
5.5
%
,
10/01/41
..
4,750,000
4,844,368
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
4
%
,
10/01/49
..............
10,000,000
11,381,745
Hillsborough
County
Aviation
Authority
,
Revenue,
2015-B,
5%,
10/01/44
.......................................
10,000,000
11,409,449
Revenue,
2018
A,
5%,
10/01/48
.......................................
20,000,000
24,272,648
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)
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/55
.......................
$
3,500,000
$
3,959,903
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
4,625,086
JEA
Electric
System
,
Revenue,
2020
A,
Refunding,
4%,
10/01/35
..............................
5,000,000
5,918,070
Revenue,
2020
A-3,
Refunding,
4%,
10/01/38
.............................
9,080,000
10,765,569
Revenue,
2020
A-3,
Refunding,
4%,
10/01/39
.............................
9,300,000
11,000,371
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
4/01/44
.....................................
4,220,000
5,185,100
Martin
County
Health
Facilities
Authority
,
Martin
Memorial
Medical
Center
Obligated
Group
,
Revenue
,
2012
,
Pre-Refunded
,
AGMC
Insured
,
5.5
%
,
11/15/42
..........
3,800,000
3,908,191
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation
,
2015A
2015B
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/44
...............................................
12,000,000
13,336,961
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,529,146
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,710,802
Revenue,
A,
5%,
7/01/40
............................................
30,265,000
30,350,390
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
3,635,000
4,493,607
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
8,620,676
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/39
.....
6,000,000
7,082,770
Orlando
Health
Obligated
Group,
Revenue,
2019
A,
5%,
10/01/47
.............
5,000,000
6,075,062
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
14,000,000
15,268,574
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
B
,
5
%
,
11/15/42
......................
500,000
601,140
School
Board
of
Miami-Dade
County
(The)
,
COP
,
2013
A
,
5
%
,
5/01/31
...........
10,000,000
10,872,658
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
24,751,278
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
3,750,000
4,070,844
State
of
Florida
,
GO
,
1999
D
,
Refunding
,
6
%
,
6/01/23
........................
17,500,000
19,638,419
Tampa-Hillsborough
County
Expressway
Authority
,
Revenue
,
2017
,
5
%
,
7/01/47
....
10,000,000
11,960,950
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
6,019,730
Town
of
Davie
,
Water
&
Sewer
,
Revenue
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
10/01/32
........................................................
8,575,000
8,747,202
678,474,525
Georgia
3.0%
Atlanta
Development
Authority
(The)
,
Revenue,
2015
A-1,
5.25%,
7/01/44
....................................
3,000,000
3,454,081
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
6,978,967
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
7,810,227
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,749,060
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
5,866,990
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
17,480,664
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
18,537,519
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
34,390,135
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/40
..............
4,655,000
5,768,164
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/41
..............
4,845,000
6,001,579
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
4%,
11/01/38
..............
13,550,000
15,908,849
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)
Georgia
(continued)
Clarke
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
7/01/46
...............................
$
10,835,000
$
12,700,867
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
4/01/41
...............................
50,000
58,570
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
12,518,708
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
........................................................
11,005,000
12,900,143
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
5,000,000
5,894,118
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/50
........
3,500,000
4,025,752
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017,
Refunding,
4.125%,
11/01/45
.........
18,500,000
20,723,223
Oglethorpe
Power
Corp.,
Revenue,
2017
C,
Refunding,
4.125%,
11/01/45
.......
2,500,000
2,800,435
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
7/01/39
...............................
11,420,000
12,716,063
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
5,346,858
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
2/15/45
.................
13,040,000
15,436,217
George
L
Smith
II
Congress
Center
Authority
,
Signia
Hotel
Management
LLC,
Revenue,
First
Tier,
2021
A,
4%,
1/01/36
........
1,250,000
1,465,692
Signia
Hotel
Management
LLC,
Revenue,
First
Tier,
2021
A,
4%,
1/01/54
........
7,500,000
8,530,441
Georgia
Housing
&
Finance
Authority
,
Revenue
,
2020
A
,
Refunding
,
3.05
%
,
12/01/40
2,250,000
2,392,905
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,605,534
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/28
......................................
5,000,000
6,445,029
Revenue,
2019
A,
5%,
5/15/49
........................................
11,500,000
17,074,761
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,580,000
5,541,194
Revenue,
2019
B,
5%,
1/01/59
........................................
4,000,000
4,728,937
Private
Colleges
&
Universities
Authority
,
Emory
University,
Revenue,
2013
A,
5%,
10/01/43
.........................
10,000,000
11,037,612
Emory
University,
Revenue,
2019
B,
Refunding,
5%,
9/01/48
.................
6,005,000
7,540,376
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/39
.................
2,100,000
2,543,047
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/40
.................
2,000,000
2,416,413
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/41
.................
2,250,000
2,710,745
Savannah
Economic
Development
Authority
,
SSU
Community
Development
I
LLC
,
Revenue
,
2010
,
AGMC
Insured
,
5.75
%
,
6/15/41
...........................
10,000,000
10,040,201
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/43
...............................
15,000,000
17,123,838
State
of
Georgia
,
GO
,
2017
A
,
4
%
,
2/01/36
................................
10,000,000
11,586,627
346,850,541
Hawaii
1.0%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
25,000,000
30,455,385
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
15,000,000
18,151,648
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
15,450,000
18,685,922
Airports
System,
Revenue,
2020
A,
4%,
7/01/45
...........................
8,125,000
9,395,951
Airports
System,
Revenue,
2020
D,
Refunding,
4%,
7/01/39
..................
10,000,000
12,012,528
State
of
Hawaii
Department
of
Budget
&
Finance
,
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
..........
10,000,000
10,878,751
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)
Hawaii
(continued)
State
of
Hawaii
Department
of
Budget
&
Finance,
(continued)
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
3.5%,
10/01/49
..................
$
17,035,000
$
17,791,542
117,371,727
Idaho
0.1%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/36
........................................................
4,200,000
5,118,115
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
3,500,000
4,250,916
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
6,928,618
16,297,649
Illinois
5.6%
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
9,970,000
10,841,804
Revenue,
Second
Lien,
2016
B,
Refunding,
5%,
1/01/46
....................
18,420,000
21,627,972
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016
D,
5.25%,
1/01/42
............................
10,000,000
12,186,602
Revenue,
Senior
Lien,
2016
D,
5%,
1/01/47
..............................
18,000,000
21,705,768
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/37
.....................
4,000,000
4,742,496
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/38
.....................
3,000,000
3,546,752
Revenue,
Senior
Lien,
2020
E,
Refunding,
4%,
1/01/37
.....................
6,015,000
7,131,529
Chicago
Park
District
,
GO,
2020
C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,613,090
GO,
2020
C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
4,941,212
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
1,163,738
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
1,000,000
1,160,436
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
1,157,404
GO,
2020
F-2,
Refunding,
4%,
1/01/36
..................................
1,250,000
1,443,107
GO,
2020
F-2,
Refunding,
5%,
1/01/37
..................................
2,000,000
2,489,796
GO,
2020
F-2,
Refunding,
5%,
1/01/39
..................................
1,625,000
2,012,232
GO,
2020
F-2,
Refunding,
5%,
1/01/40
..................................
1,625,000
2,008,075
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
2011,
Pre-Refunded,
5.25%,
12/01/40
..........................
10,000,000
10,297,141
Revenue,
Second
Lien,
2020
A,
Refunding,
4%,
12/01/50
....................
9,000,000
10,232,115
City
of
Chicago
,
GO
,
1998
,
NATL
Insured
,
ETM,
5.75
%
,
1/01/23
................
8,955,000
9,491,731
d,e
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
FRN
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
5,750,000
County
of
Cook
,
GO,
2021
A,
Refunding,
5%,
11/15/31
..................................
3,650,000
4,829,020
GO,
2021
A,
Refunding,
5%,
11/15/32
..................................
2,400,000
3,162,880
GO,
2021
A,
Refunding,
5%,
11/15/33
..................................
2,350,000
3,085,372
Sales
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/15/37
......................
1,625,000
2,104,870
Sales
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/15/38
......................
2,315,000
2,987,939
Sales
Tax,
Revenue,
2021
A,
Refunding,
4%,
11/15/39
......................
4,000,000
4,769,334
Sales
Tax,
Revenue,
2021
A,
Refunding,
4%,
11/15/40
......................
3,145,000
3,740,560
Illinois
Finance
Authority
,
Carle
Foundation
Obligated
Group
(The),
Revenue,
2016
A,
Refunding,
5%,
2/15/45
20,000,000
23,234,000
CHF-Dekalb
II
LLC,
Revenue,
2011,
6.875%,
10/01/43
......................
15,000,000
15,176,015
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
35,463,660
OSF
Healthcare
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
5/15/50
7,630,000
8,734,016
Macon
County
School
District
No.
61
Decatur
,
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/40
.......................
3,700,000
4,106,834
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/45
.......................
3,125,000
3,438,562
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
8,780,000
10,381,936
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)
Illinois
(continued)
Metropolitan
Pier
&
Exposition
Authority,
(continued)
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/32
......................
$
3,490,000
$
2,643,623
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/33
......................
24,000,000
17,580,288
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/34
......................
1,655,000
1,172,730
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
6/15/38
.......................
2,325,000
1,439,524
Revenue,
2002
A,
AGMC,
NATL
Insured,
Zero
Cpn.,
12/15/40
................
6,000,000
3,580,885
Revenue,
NATL
RE
Insured,
ETM,
5.65%,
6/15/22
.........................
5,500,000
5,826,949
Revenue,
2002
B,
NATL
RE
Insured,
5.65%,
6/15/22
.......................
24,500,000
25,537,835
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
6/01/28
14,530,000
14,594,263
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
3,701,922
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn.,
12/01/26
..................................
7,700,000
7,090,168
St.
Clair
County
School
District
No.
189
East
St.
Louis
,
GO
,
2008
,
Refunding
,
AMBAC
Insured
,
5.125
%
,
1/01/28
............................................
7,135,000
7,144,838
State
of
Illinois
,
GO,
2012,
AGMC
Insured,
5%,
3/01/27
.................................
11,500,000
11,924,588
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,215,000
4,998,272
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
3,675,000
4,369,938
GO,
2016,
5%,
11/01/35
.............................................
1,000,000
1,160,886
GO,
2017
A,
5%,
12/01/35
...........................................
2,000,000
2,374,096
GO,
2017
A,
4.25%,
12/01/40
.........................................
3,150,000
3,504,483
GO,
2017
C,
5%,
11/01/29
...........................................
17,470,000
20,821,618
GO,
2017
D,
3.25%,
11/01/26
.........................................
1,750,000
1,926,397
GO,
2017
D,
5%,
11/01/26
...........................................
8,800,000
10,499,750
GO,
2017
D,
5%,
11/01/27
...........................................
10,970,000
13,306,270
GO,
2017
D,
5%,
11/01/28
...........................................
5,155,000
6,196,386
GO,
2018
A,
Refunding,
5%,
10/01/28
..................................
3,000,000
3,727,907
GO,
2018
A,
Refunding,
5%,
10/01/33
..................................
14,245,000
17,228,315
GO,
2018
A,
5%,
5/01/34
............................................
3,010,000
3,603,585
GO,
2018
A,
5%,
5/01/35
............................................
6,455,000
7,715,594
GO,
2018
B,
Refunding,
5%,
10/01/32
..................................
2,010,000
2,438,491
GO,
2019
B,
4%,
11/01/34
...........................................
2,600,000
2,981,052
GO,
2019
B,
4%,
11/01/38
...........................................
1,810,000
2,051,213
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,814,439
GO,
2019
C,
4%,
11/01/43
...........................................
4,190,000
4,679,907
GO,
2020,
5.5%,
5/01/30
............................................
13,815,000
17,907,947
GO,
2020,
5.5%,
5/01/39
............................................
20,030,000
25,564,754
GO,
2020,
5.75%,
5/01/45
...........................................
7,965,000
10,224,663
GO,
2020
B,
5%,
10/01/28
...........................................
10,000,000
12,426,357
GO,
2020
C,
4%,
10/01/37
...........................................
3,685,000
4,239,607
GO,
2020
C,
4%,
10/01/38
...........................................
9,750,000
11,177,782
GO,
2020
C,
4%,
10/01/39
...........................................
4,585,000
5,239,259
GO,
2020
C,
4%,
10/01/42
...........................................
2,010,000
2,275,129
GO,
2021
A,
5%,
3/01/32
............................................
3,425,000
4,384,722
University
of
Illinois
,
Auxiliary
Facilities
System,
Revenue,
2011
A,
5.125%,
4/01/36
................
2,950,000
2,958,677
Auxiliary
Facilities
System,
Revenue,
2011
A,
5.25%,
4/01/41
.................
5,000,000
5,014,999
c
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
7,734,157
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4.5%,
12/01/50
.........................................
34,795,000
35,536,001
Village
of
Bolingbrook
,
GO
,
2013
A
,
Pre-Refunded
,
Zero
Cpn.,
1/01/36
...........
19,000,000
9,831,620
633,909,884
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)
Indiana
3.3%
City
of
Indianapolis
,
Department
of
Public
Utilities
Water
System
,
Revenue,
First
Lien
,
2016
B
,
Refunding
,
5
%
,
10/01/37
......................................
$
15,000,000
$
18,242,949
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,670,057
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
13,413,388
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
16,743,662
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
20,655,148
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2011
A,
5.25%,
10/01/38
.............
12,000,000
12,242,224
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
5%,
10/01/37
...............
5,000,000
5,325,171
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
4%,
10/01/42
...............
24,690,000
25,751,287
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2014
A,
5%,
10/01/39
...............
30,000,000
34,301,952
Deaconess
Health
System
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
3/01/39
........................................................
5,000,000
5,657,862
Marian
University,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.375%,
9/15/41
.........
12,500,000
12,782,937
Marion
County
Capital
Improvement
Board,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/37
........................................................
10,000,000
11,898,134
WVB
East
End
Partners
LLC,
Revenue,
2013
A,
5.25%,
1/01/51
...............
20,000,000
21,838,396
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
6,526,945
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
21,290,000
25,576,714
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
8,525,000
10,080,071
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017,
Refunding,
5%,
1/01/40
.................................
23,225,000
28,409,131
Revenue,
2019
A,
4%,
2/01/44
........................................
6,050,000
7,103,332
Revenue,
2019
A,
5%,
2/01/49
........................................
41,970,000
52,144,355
Revenue,
2021
A,
Refunding,
5%,
6/01/35
...............................
8,185,000
10,606,216
Revenue,
2021
A,
Refunding,
AGMC
Insured,
4%,
6/01/36
...................
21,500,000
25,532,396
Northern
Indiana
Commuter
Transportation
District
,
Revenue
,
2016
,
5
%
,
7/01/41
...
6,000,000
7,177,453
375,679,780
Iowa
0.3%
Iowa
Finance
Authority
,
Iowa
Health
System
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
2/15/48
..
7,500,000
9,152,317
State
Revolving
Fund,
Revenue,
2017,
Refunding,
5%,
8/01/42
...............
16,000,000
19,725,829
Iowa
Tobacco
Settlement
Authority
,
Revenue
,
2021
A-2
,
1
,
Refunding
,
4
%
,
6/01/49
..
7,500,000
8,568,165
37,446,311
Kansas
0.7%
Butler
County
Unified
School
District
No.
490
El
Dorado
,
GO
,
2016
B
,
BAM
Insured
,
4
%
,
9/01/43
......................................................
10,000,000
11,254,472
University
of
Kansas
Hospital
Authority
,
University
of
Kansas
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/47
.........................
23,115,000
27,729,790
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2014
A,
Refunding,
5%,
9/01/44
....................
3,000,000
3,395,847
Utility
System,
Revenue,
2016-A,
5%,
9/01/45
............................
10,000,000
11,622,177
Utility
System,
Revenue,
2016-C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,990,206
Utility
System,
Revenue,
2016-C,
Refunding,
5%,
9/01/46
...................
16,565,000
19,709,613
79,702,105
Kentucky
0.2%
Kentucky
Municipal
Power
Agency
,
Revenue,
2015
A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
11,708,231
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/34
....................
5,000,000
6,098,774
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
9,438,948
27,245,953
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)
Louisiana
3.3%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
$
10,000,000
$
12,011,162
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
7,421,696
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
20,000,000
23,510,670
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/42
.......
20,000,000
23,857,758
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,946,042
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
c
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
10,000,000
10,384,434
East
Baton
Rouge
Sewerage
Commission,
Revenue,
Sub.
Lien,
2014-A,
Pre-
Refunded,
5%,
2/01/44
............................................
5,820,000
6,576,561
Entergy
Louisiana
LLC,
Revenue,
2021
B,
Refunding,
2.5%,
4/01/36
...........
22,000,000
22,393,470
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
5%,
10/01/39
.
10,000,000
11,329,025
c
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
3,600,000
3,745,431
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
35,000,000
41,078,965
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
6/01/50
5,990,000
6,829,681
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
15,000,000
17,107,809
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
11,295,000
12,852,561
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2002
B,
ETM,
5.75%,
5/15/23
10,000,000
11,108,942
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
6.75%,
5/15/41
........................................................
15,500,000
15,531,479
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
5/15/47
7,500,000
8,558,987
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/42
20,000,000
23,868,986
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
5/15/47
..............................................
9,925,000
10,624,496
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
5/15/49
........................................................
10,000,000
11,541,314
c
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
2,500,000
2,859,457
c
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
14,000,000
15,896,075
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/40
.................
3,750,000
4,350,924
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
3,500,000
4,356,973
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/50
.................
4,000,000
4,559,076
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
5,700,000
6,126,920
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
4,000,000
4,715,189
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................................
6,000,000
6,974,072
b
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
7,854,977
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/44
........................................
8,110,000
9,948,994
Revenue,
2020
E,
5%,
4/01/47
........................................
10,000,000
12,184,964
Terrebonne
Levee
&
Conservation
District
,
Revenue,
2020
B,
Refunding,
4%,
6/01/40
...............................
5,065,000
5,735,555
Revenue,
2020
B,
Refunding,
4%,
6/01/41
...............................
5,165,000
5,837,367
377,680,012
Maine
0.5%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
6.75%,
7/01/36
........................................................
4,250,000
4,294,657
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
Pre-Refunded,
7%,
7/01/41
10,000,000
10,109,031
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)
Maine
(continued)
Maine
Health
&
Higher
Educational
Facilities
Authority,
(continued)
MaineHealth
Obligated
Group,
Revenue,
2018
A,
5%,
7/01/43
................
$
3,000,000
$
3,630,330
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/39
................
1,075,000
1,267,306
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/50
................
14,215,000
16,400,609
Maine
Turnpike
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.......................
15,500,000
18,829,755
54,531,688
Maryland
0.9%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2013
C,
Pre-Refunded,
5%,
7/01/38
.........
5,000,000
5,638,829
Wastewater
Utility
Fund,
Revenue,
2013
C,
Pre-Refunded,
5%,
7/01/43
.........
10,000,000
11,277,658
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/39
.....................
10,000,000
11,458,198
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/44
.....................
10,000,000
11,381,889
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/39
.........................
9,430,000
10,805,081
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/44
.........................
5,500,000
6,260,039
Maryland
Economic
Development
Corp.
,
Morgan
State
University,
Revenue,
2020,
4.25%,
7/01/50
....................
1,000,000
1,122,403
Morgan
State
University,
Revenue,
2020,
5%,
7/01/56
......................
1,415,000
1,691,518
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
14,749,057
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/45
..
1,945,000
2,221,399
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
3,374,950
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/42
..............
7,500,000
9,036,953
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
1991
B,
NATL
Insured,
ETM,
7%,
7/01/22
.........................................
90,000
95,699
Maryland
State
Transportation
Authority
,
Revenue
,
2020
,
4
%
,
7/01/45
............
13,205,000
15,693,841
104,807,514
Massachusetts
3.1%
Commonwealth
of
Massachusetts
,
GO,
2016
G,
4%,
9/01/42
............................................
20,000,000
23,060,802
GO,
2017
B,
5%,
4/01/47
............................................
12,335,000
15,130,099
GO,
2018
A,
5%,
1/01/41
............................................
15,000,000
18,690,727
GO,
2018
A,
5%,
1/01/46
............................................
10,000,000
12,403,378
GO,
2019
A,
5.25%,
1/01/44
..........................................
10,000,000
12,805,546
Transportation
Fund,
Revenue,
2012
A,
4%,
6/01/35
.......................
10,000,000
10,023,581
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
25,055,000
31,084,168
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
18,694,344
Massachusetts
Bay
Transportation
Authority
,
Revenue
,
2005
A
,
5
%
,
7/01/28
.......
10,000,000
12,927,983
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
450,000
451,844
Revenue,
2002
A,
5%,
8/01/32
........................................
225,000
225,795
Massachusetts
Development
Finance
Agency
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2018
J-2,
5%,
7/01/53
......
5,000,000
5,987,323
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016
N,
5%,
12/01/41
..
10,135,000
12,023,142
Mass
General
Brigham,
Inc.,
Revenue,
2016
Q,
Refunding,
5%,
7/01/47
.........
15,000,000
17,951,405
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
15,415,000
17,775,921
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/33
........................................................
600,000
788,431
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/34
........................................................
625,000
815,007
c
Waste
Management
of
Massachusetts,
Inc.,
Revenue,
144A,
2002,
1.25%,
5/01/27
3,250,000
3,250,000
Wellesley
College,
Revenue,
2012,
5%,
7/01/42
...........................
10,000,000
10,567,889
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
4%,
10/01/45
.......................................................
1,250,000
1,449,956
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
12,126,750
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)
Massachusetts
(continued)
Massachusetts
Educational
Financing
Authority
,
Revenue,
2009
I,
6%,
1/01/28
........................................
$
1,460,000
$
1,480,964
Revenue,
2013
K,
5.25%,
7/01/29
.....................................
3,690,000
3,862,645
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,000,000
2,131,763
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/44
........................................
15,000,000
18,533,342
Revenue,
2019
C,
5%,
7/01/49
........................................
10,000,000
12,291,792
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
9,111,600
Massachusetts
School
Building
Authority
,
Revenue,
2018
A,
4%,
2/15/43
........................................
10,750,000
12,520,656
Revenue,
2019
A,
5%,
2/15/49
........................................
25,000,000
29,718,433
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien
,
2014-1
,
Pre-
Refunded
,
5
%
,
11/01/39
.............................................
20,000,000
23,183,930
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/39
......................
4,410,000
5,141,135
Revenue,
Senior
Lien,
Pre-Refunded,
5%,
11/01/39
........................
7,405,000
8,618,262
Revenue,
Senior
Lien,
2014-1,
5%,
11/01/39
.............................
8,185,000
9,424,533
351,069,216
Michigan
2.5%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
10,000
10,034
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
AGMC
Insured,
5%,
7/01/39
..........................
10,000,000
10,567,100
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
5.25%,
7/01/39
....................................
12,000,000
12,715,240
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003-A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,034
Detroit
City
School
District
,
GO,
2012
A,
Refunding,
5%,
5/01/30
...................................
1,245,000
1,303,670
GO,
2012
A,
Refunding,
5%,
5/01/33
...................................
1,500,000
1,569,918
Michigan
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2016
A,
5%,
11/01/44
............
20,925,000
24,117,404
Bronson
Healthcare
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
25,000,000
29,328,527
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019
A,
5%,
11/15/48
.....
25,920,000
32,178,635
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
2/15/44
.....
20,000,000
23,003,466
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/36
...
1,000,000
1,204,346
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/37
...
2,000,000
2,398,025
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/38
...
1,500,000
1,790,282
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/39
...
1,500,000
1,783,609
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/40
...
1,000,000
1,184,035
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
4,000,000
4,559,214
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B1,
2,
Refunding,
5%,
6/01/49
..
4,500,000
5,397,471
Trinity
Health
Corp.
Obligated
Group,
Revenue,
Pre-Refunded,
5%,
12/01/39
.....
29,750,000
30,591,123
Michigan
State
Building
Authority
,
Revenue,
2011
I-A,
Pre-Refunded,
5.375%,
10/15/36
.......................
6,730,000
6,889,305
Revenue,
2013
1-A,
Refunding,
5.25%,
10/15/44
..........................
20,655,000
22,955,965
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2010
F-7,
Refunding,
5%,
11/15/47
....
10,000,000
12,055,374
Trinity
Health
Corp.
Obligated
Group,
Revenue,
Pre-Refunded,
5%,
12/01/34
.....
10,000,000
10,520,748
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
3.25
%
,
10/01/44
3,450,000
3,664,563
Michigan
Strategic
Fund
,
DTE
Electric
Co.,
Revenue,
BB,
Refunding,
AMBAC
Insured,
7%,
5/01/21
.......
250,000
250,000
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
12/31/43
...
10,000,000
12,106,568
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)
Michigan
(continued)
Michigan
Strategic
Fund,
(continued)
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
$
7,000,000
$
7,772,239
Pontiac
School
District
,
GO,
2020,
4%,
5/01/45
.............................................
7,940,000
9,377,045
GO,
2020,
4%,
5/01/50
.............................................
8,665,000
10,178,095
279,482,035
Minnesota
0.1%
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
5/01/48
.............................................
10,000,000
12,223,650
Mississippi
0.7%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/47
.........................
25,000,000
29,713,605
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System
,
Revenue
,
2013
,
AGMC
Insured
,
6.875
%
,
12/01/40
.................................
3,400,000
3,906,116
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/36
...
6,350,000
7,306,814
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/46
...
30,000,000
34,087,665
75,014,200
Missouri
1.0%
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
10/01/44
......................................
6,000,000
7,085,945
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
4,000,000
4,455,742
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
28,288,180
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
7,500,000
9,005,044
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/46
...................
13,500,000
16,428,780
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/54
...................
23,500,000
28,602,818
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
5%,
3/01/57
.......
9,000,000
11,099,624
St.
Louis
Municipal
Finance
Corp
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/49
.....................................................
5,000,000
6,187,923
111,154,056
Montana
0.2%
Montana
Facility
Finance
Authority
,
Benefis
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/41
.
2,650,000
3,100,016
Billings
Clinic
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
.......
10,000,000
12,302,089
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
7,465,254
22,867,359
Nebraska
0.4%
Douglas
County
Hospital
Authority
No.
2
,
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
11/15/47
.......................................
10,000,000
11,844,102
Hospital
Authority
No.
1
of
Lancaster
County
,
Bryan
Medical
Center
Obligated
Group
,
Revenue
,
1992
,
NATL
Insured
,
ETM,
6.7
%
,
6/01/22
........................
635,000
658,032
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
11,661,343
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
11,705,440
Public
Power
Generation
Agency
,
Revenue,
2016
A,
Refunding,
5%,
1/01/39
...............................
7,340,000
8,767,549
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)
Nebraska
(continued)
Public
Power
Generation
Agency,
(continued)
Revenue,
2016
A,
Refunding,
5%,
1/01/41
...............................
$
5,140,000
$
6,119,607
50,756,073
Nevada
0.3%
City
of
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
........................................
2,775,000
3,292,461
City
of
Henderson
,
GO
,
2020
A-1
,
4
%
,
6/01/45
.............................
10,000,000
11,824,130
Clark
County
School
District
,
GO,
2020
A,
AGMC
Insured,
4%,
6/15/36
................................
750,000
901,151
GO,
2020
A,
AGMC
Insured,
4%,
6/15/37
................................
875,000
1,047,878
GO,
2020
A,
AGMC
Insured,
4%,
6/15/38
................................
850,000
1,015,115
GO,
2020
A,
AGMC
Insured,
4%,
6/15/39
................................
1,000,000
1,191,117
GO,
2020
A,
AGMC
Insured,
4%,
6/15/40
................................
725,000
861,767
Las
Vegas
Convention
&
Visitors
Authority
,
Revenue
,
2018
B
,
5
%
,
7/01/43
........
10,000,000
11,916,330
32,049,949
New
Hampshire
0.2%
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Concord
Hospital
Obligated
Group,
Revenue,
2017,
5%,
10/01/47
.............
6,000,000
7,080,766
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
4,706,135
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
10,350,000
11,949,695
23,736,596
New
Jersey
4.1%
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/46
.....................................
1,500,000
1,709,743
Revenue,
2021
QQQ,
4%,
6/15/50
.....................................
1,000,000
1,134,883
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
7,200,000
8,758,856
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2013
NN,
Refunding,
5%,
3/01/28
........................................................
22,000,000
23,791,313
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/33
6,135,000
7,654,456
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/36
11,850,000
14,656,621
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
4.625%,
6/15/48
........................................................
2,000,000
2,336,596
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/48
8,000,000
9,667,647
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
3,250,000
4,011,310
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
4%,
6/15/44
2,725,000
3,086,500
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/41
....
26,000,000
30,515,475
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
4,600,000
5,584,197
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/35
..............................................
4,800,000
5,814,678
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
16,413,334
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
Senior
Lien,
2018
A,
4%,
12/01/33
.............................
2,800,000
3,038,371
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
8,000,000
8,497,010
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
NATL
Insured,
Zero
Cpn.,
12/15/31
......................
6,275,000
5,076,722
Revenue,
2009
A,
Zero
Cpn.,
12/15/36
..................................
500,000
337,942
Revenue,
2009
A,
Zero
Cpn.,
12/15/39
..................................
71,750,000
43,334,546
Revenue,
2010
A,
Zero
Cpn.,
12/15/40
..................................
4,750,000
2,764,441
Revenue,
2011
B,
5.25%,
6/15/36
.....................................
10,000,000
10,054,385
Revenue,
2013
AA,
5%,
6/15/44
.......................................
1,000,000
1,079,091
Revenue,
2014
BB-1,
5%,
6/15/31
.....................................
3,000,000
3,766,642
Revenue,
2014
BB-1,
5%,
6/15/34
.....................................
3,250,000
4,043,351
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)
New
Jersey
(continued)
New
Jersey
Transportation
Trust
Fund
Authority,
(continued)
Revenue,
2015
AA,
5%,
6/15/45
.......................................
$
15,000,000
$
17,034,447
Revenue,
2018
A,
Refunding,
5%,
12/15/32
..............................
18,400,000
22,993,508
Revenue,
2018
A,
Refunding,
5%,
12/15/35
..............................
8,200,000
10,164,134
Revenue,
2019
A,
Refunding,
5%,
12/15/39
..............................
785,000
968,000
Revenue,
2019
BB,
4%,
6/15/38
.......................................
2,000,000
2,283,117
Revenue,
2019
BB,
4%,
6/15/44
.......................................
4,000,000
4,509,258
Revenue,
2019
BB,
5%,
6/15/44
.......................................
5,150,000
6,253,026
Revenue,
2020
AA,
4%,
6/15/45
.......................................
5,160,000
5,887,929
Revenue,
2020
AA,
5%,
6/15/45
.......................................
4,840,000
6,003,808
Revenue,
2020
AA,
4%,
6/15/50
.......................................
35,255,000
40,010,307
Revenue,
2020
AA,
5%,
6/15/50
.......................................
16,245,000
20,040,774
d
Revenue,
2022
A,
4%,
6/15/39
........................................
10,000,000
11,162,680
d
Revenue,
2022
A,
4%,
6/15/41
........................................
7,500,000
8,310,013
New
Jersey
Turnpike
Authority
,
Revenue,
2015
E,
5%,
1/01/45
........................................
11,475,000
13,186,465
Revenue,
2021
A,
4%,
1/01/42
........................................
6,075,000
7,215,448
Revenue,
D,
5%,
1/01/28
............................................
15,265,000
18,592,622
State
of
New
Jersey
,
GO,
2020
A,
4%,
6/01/30
............................................
11,450,000
14,061,864
GO,
2020
A,
4%,
6/01/31
............................................
7,000,000
8,696,932
GO,
2020
A,
3%,
6/01/32
............................................
18,000,000
20,432,901
GO,
2020
A,
4%,
6/01/32
............................................
5,500,000
6,911,633
461,846,976
New
Mexico
0.3%
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2015
A,
5%,
8/01/44
10,000,000
11,571,620
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
17,992,107
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/33
.
1,000,000
1,147,468
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/35
.
1,000,000
1,141,177
31,852,372
New
York
12.2%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
2,536,618
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
180,000
180,734
GO,
2003
F,
5.25%,
1/15/23
..........................................
5,000
5,019
GO,
2018
E-1,
5%,
3/01/40
..........................................
14,570,000
17,831,538
GO,
2021
A,
Refunding,
4%,
8/01/34
...................................
4,290,000
5,160,312
GO,
2021
C,
4%,
8/01/40
............................................
6,500,000
7,660,376
GO,
2021
C,
4%,
8/01/41
............................................
3,000,000
3,522,887
GO,
2021
F-1,
5%,
3/01/37
..........................................
4,625,000
6,042,571
Hudson
Yards
Infrastructure
Corp.
,
Revenue,
Senior
Lien
,
2012
A
,
AGMC
Insured
,
5
%
,
2/15/47
.........................................................
15,480,000
15,531,400
Long
Island
Power
Authority
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/46
..........
13,000,000
15,382,704
Metropolitan
Transportation
Authority
,
Revenue,
2012
A-1,
5%,
11/15/40
.....................................
30,000,000
32,194,806
Revenue,
2013
A,
5%,
11/15/38
.......................................
11,800,000
12,673,272
Revenue,
2013
B,
5%,
11/15/43
.......................................
8,000,000
8,574,044
Revenue,
2015
A,
5%,
11/15/40
.......................................
7,000,000
7,948,884
Revenue,
2015
D-1,
Refunding,
5%,
11/15/32
............................
1,250,000
1,454,793
Revenue,
2016
B,
Refunding,
5%,
11/15/28
..............................
2,885,000
3,502,980
Revenue,
2016
C-1,
5.25%,
11/15/56
...................................
14,765,000
17,410,235
Revenue,
2016
D,
Refunding,
5%,
11/15/31
..............................
1,180,000
1,414,016
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
York
(continued)
Metropolitan
Transportation
Authority,
(continued)
Revenue,
2017
A-2,
Refunding,
5%,
11/15/26
.............................
$
4,425,000
$
5,442,365
Revenue,
2017
C-1,
Refunding,
5%,
11/15/33
............................
1,780,000
2,184,052
Revenue,
2017
C-2,
Refunding,
Zero
Cpn.,
11/15/29
.......................
2,090,000
1,766,007
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
55,717,163
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
11,355,629
Revenue,
2020
A-1,
5%,
11/15/48
.....................................
7,000,000
8,590,376
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
13,220,000
15,944,216
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
12,150,000
14,887,842
Revenue,
2020
C-1,
5.25%,
11/15/55
...................................
24,500,000
30,472,010
Revenue,
2020
D,
5%,
11/15/44
.......................................
17,000,000
21,193,769
Revenue,
2020
D,
4%,
11/15/50
.......................................
20,000,000
22,742,996
Monroe
County
Industrial
Development
Corp.
,
University
of
Rochester
,
Revenue
,
2020
A
,
4
%
,
7/01/50
....................................................
5,000,000
5,800,331
New
York
City
,
Water
&
Sewer
System,
Revenue,
2013
DD,
5%,
6/15/35
....................
30,705,000
33,643,149
Water
&
Sewer
System,
Revenue,
2014-BB,
5%,
6/15/46
....................
15,000,000
16,358,727
Water
&
Sewer
System,
Revenue,
2015
FF,
Refunding,
5%,
6/15/39
............
10,000,000
11,702,832
Water
&
Sewer
System,
Revenue,
2015
HH,
Refunding,
5%,
6/15/39
...........
15,000,000
17,554,248
Water
&
Sewer
System,
Revenue,
2017
CC,
Refunding,
5%,
6/15/46
...........
32,500,000
39,166,202
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
14,945,533
New
York
City
Industrial
Development
Agency
,
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
3%,
1/01/33
1,750,000
1,945,551
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
3%,
1/01/34
1,000,000
1,100,810
Yankee
Stadium
LLC,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
3/01/45
..
6,000,000
6,985,884
New
York
City
Transitional
Finance
Authority
,
Building
Aid,
Revenue,
2011
S-2A,
5%,
7/15/40
...........................
35,000,000
35,307,034
Building
Aid,
Revenue,
2012
S-1A,
5.25%,
7/15/37
.........................
30,300,000
30,586,826
Future
Tax
Secured,
Revenue,
2011
C,
Refunding,
5%,
11/01/39
..............
5,000
5,002
Future
Tax
Secured,
Revenue,
2014
A-1,
5%,
11/01/34
......................
15,000,000
16,710,073
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
11,937,517
Future
Tax
Secured,
Revenue,
2017
B,
5%,
8/01/36
........................
10,000,000
12,126,530
Future
Tax
Secured,
Revenue,
2017
B,
5%,
8/01/38
........................
10,000,000
12,103,666
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
13,634,415
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
11,945,000
14,766,752
Future
Tax
Secured,
Revenue,
2018
C-3,
4%,
5/01/43
......................
19,800,000
22,681,898
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
11,663,006
Future
Tax
Secured,
Revenue,
2020
C,
4%,
5/01/45
........................
3,500,000
4,099,175
Future
Tax
Secured,
Revenue,
2021
A,
Refunding,
3%,
11/01/37
..............
5,500,000
5,944,252
New
York
Liberty
Development
Corp.
,
Revenue,
2011
-
1WTC,
5.25%,
12/15/43
................................
25,000,000
25,714,357
7
World
Trade
Center
II
LLC,
Revenue,
2012,
2,
Refunding,
5%,
9/15/43
........
6,500,000
6,721,957
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
57,047,044
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
37,377,233
New
York
Power
Authority
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/15/45
...........
8,055,000
9,468,969
New
York
State
Dormitory
Authority
,
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
............................
5,000
6,487
Revenue,
2018
E,
5%,
3/15/46
........................................
73,125,000
90,488,509
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
B,
5%,
2/15/40
.........
20,000,000
23,157,320
State
of
New
York
Personal
Income
Tax,
Revenue,
2017
B,
Refunding,
5%,
2/15/42
24,410,000
29,738,815
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
D,
Refunding,
4%,
2/15/47
50,000,000
57,734,165
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
12,042,588
State
of
New
York
Sales
Tax,
Revenue,
2018
A,
5%,
3/15/45
.................
25,000,000
30,584,530
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/42
........
33,280,000
40,937,139
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/42
........
59,480,000
74,109,748
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/45
........................................
20,000,000
22,859,120
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)
New
York
State
Thruway
Authority,
(continued)
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/51
..............................
$
9,000,000
$
10,519,254
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
A,
4%,
3/15/47
.........
15,200,000
17,399,868
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
4%,
3/15/45
.........
12,000,000
14,022,335
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/34
..........................
5,560,000
6,740,106
Delta
Air
Lines,
Inc.,
Revenue,
2020,
4%,
10/01/30
.........................
5,750,000
6,809,682
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/35
.........................
10,800,000
13,792,278
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
20,000,000
22,302,918
Revenue,
218,
4%,
11/01/47
.........................................
8,000,000
9,134,699
Revenue,
221,
4%,
7/15/45
..........................................
5,500,000
6,308,866
Revenue,
223,
Refunding,
5%,
7/15/32
.................................
2,775,000
3,660,903
Revenue,
223,
Refunding,
5%,
7/15/33
.................................
2,240,000
2,935,670
Revenue,
223,
Refunding,
4%,
7/15/34
.................................
3,620,000
4,364,275
Revenue,
223,
Refunding,
4%,
7/15/35
.................................
3,750,000
4,498,052
Revenue,
223,
Refunding,
4%,
7/15/36
.................................
2,700,000
3,218,711
d
Revenue,
226,
Refunding,
5%,
10/15/32
.................................
1,800,000
2,342,569
d
Revenue,
226,
Refunding,
5%,
10/15/33
.................................
2,080,000
2,691,655
d
Revenue,
226,
Refunding,
5%,
10/15/34
.................................
2,470,000
3,181,281
d
Revenue,
226,
Refunding,
5%,
10/15/35
.................................
2,100,000
2,695,001
d
Revenue,
226,
Refunding,
5%,
10/15/36
.................................
2,250,000
2,874,933
Suffolk
County
Water
Authority
,
Revenue
,
2020
B
,
3
%
,
6/01/45
.................
15,000,000
16,198,903
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
1999-B,
Pre-Refunded,
5.5%,
1/01/30
...........................
12,885,000
13,345,407
Revenue,
2020
A,
5%,
11/15/54
.......................................
8,500,000
10,722,531
1,387,840,905
North
Carolina
1.1%
County
of
Wake
,
GO
,
2010-C
,
Refunding
,
5
%
,
3/01/25
.......................
21,780,000
25,669,346
North
Carolina
Eastern
Municipal
Power
Agency
,
Revenue,
1993
B,
ETM,
6%,
1/01/22
...................................
1,250,000
1,298,437
Revenue,
1993
B,
ETM,
6.25%,
1/01/23
.................................
39,030,000
42,978,622
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,616,313
North
Carolina
Turnpike
Authority
,
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/33
......................
25,000,000
20,104,595
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/34
......................
15,000,000
11,725,738
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/35
......................
15,215,000
11,566,484
Revenue,
2018
A,
Refunding,
4%,
1/01/39
...............................
10,000,000
11,675,044
127,634,579
North
Dakota
0.4%
North
Dakota
Housing
Finance
Agency
,
Revenue,
2019
F,
3.05%,
7/01/43
......................................
2,480,000
2,598,839
Revenue,
2020
A,
3%,
7/01/40
........................................
2,500,000
2,642,280
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
11,515,496
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
10,998,905
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
6,444,511
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
11,548,829
45,748,860
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)
Ohio
3.5%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
$
3,915,000
$
4,506,883
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
5,700,000
6,516,877
American
Municipal
Power,
Inc.
,
Revenue,
2015
A,
Refunding,
5%,
2/15/39
...............................
5,000,000
5,557,050
Revenue,
2015
A,
Refunding,
5%,
2/15/42
...............................
2,500,000
2,778,525
Revenue,
2016
A,
Refunding,
5%,
2/15/46
...............................
20,000,000
23,633,000
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
22,198,607
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
A-3,
Pre-Refunded,
6.5%,
6/01/37
.............................
15,000,000
15,985,821
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
4%,
6/01/48
..................
10,235,000
11,572,058
City
of
Akron
,
Community
Learning
Center
Income
Tax
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
12/01/29
.....................................................
10,000,000
10,464,910
City
of
Middleburg
Heights
,
Southwest
General
Health
Center
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/47
...............................
4,430,000
5,037,887
City
of
Toledo
,
Water
System
,
Revenue
,
2013
,
Refunding
,
5
%
,
11/15/38
..........
20,000,000
21,739,500
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
8,518,990
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
8,771,948
County
of
Franklin
,
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/40
...................
10,000,000
11,586,663
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
11,940,433
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
10,800,000
13,050,286
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/44
..........
5,640,000
6,594,304
County
of
Hamilton
,
Christ
Hospital
Obligated
Group,
Revenue,
2012,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/42
........................................................
22,500,000
23,671,683
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/38
..................
12,000,000
13,335,938
UC
Health
Obligated
Group,
Revenue,
2020,
5%,
9/15/50
...................
7,500,000
9,295,621
Kent
State
University
,
Revenue
,
2012
A
,
Pre-Refunded
,
5
%
,
5/01/37
.............
10,500,000
11,009,831
Miami
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
9/01/45
...................
6,030,000
7,195,630
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2017,
Refunding,
4%,
11/15/38
................................
10,000,000
11,723,694
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
11,609,045
Ohio
Higher
Educational
Facility
Commission
,
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,350,000
1,528,107
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,185,000
1,335,424
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,530,000
2,844,169
Ohio
State
University
(The)
,
Revenue
,
2013
A
,
5
%
,
6/01/38
....................
10,000,000
10,900,897
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
20,000,000
24,365,178
Revenue,
Junior
Lien,
2013
A-4,
Zero
Cpn.,
2/15/35
........................
35,000,000
43,428,910
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
1/01/36
........................................................
6,500,000
7,600,521
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019
B,
4%,
1/01/43
..
12,130,000
14,203,501
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
640,000
725,862
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/40
855,000
965,008
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2012
A,
AGMC
Insured,
5%,
1/15/41
..............................................
7,000,000
7,226,973
393,419,734
Oklahoma
0.1%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,856,357
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oklahoma
(continued)
Edmond
Public
Works
Authority,
(continued)
Revenue,
2017,
5%,
7/01/47
.........................................
$
4,500,000
$
5,432,221
McGee
Creek
Authority
,
Revenue
,
1992
,
NATL
Insured
,
6
%
,
1/01/23
.............
80,000
85,076
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
4,294,050
14,667,704
Oregon
1.7%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
14,636,278
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/50
.......................................
4,000,000
5,076,374
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
20,000,000
24,909,066
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
.........................
1,685,000
1,965,843
Port
of
Portland
,
Airport,
Revenue,
25
B,
5%,
7/01/49
....................................
12,720,000
15,453,274
Airport,
Revenue,
Twenty-Seven
A,
5%,
7/01/45
...........................
23,000,000
28,438,978
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/15/44
.............................................
16,880,000
20,832,928
Salem-Keizer
School
District
No.
24J
,
GO,
2020
A,
Zero
Cpn.,
6/15/39
.......................................
2,800,000
1,833,628
GO,
2020
A,
Zero
Cpn.,
6/15/40
.......................................
4,500,000
2,848,706
State
of
Oregon
,
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
4%,
11/15/42
15,000,000
17,828,279
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
8,070,000
8,786,130
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
8,120,000
8,976,387
University
of
Oregon
,
Revenue,
2018
A,
5%,
4/01/48
........................................
14,500,000
17,662,030
Revenue,
2020
A,
5%,
4/01/50
........................................
15,000,000
18,935,842
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn.,
6/15/41
.......................................
5,725,000
2,937,614
GO,
2018
A,
Zero
Cpn.,
6/15/42
.......................................
5,900,000
2,891,675
GO,
2018
A,
Zero
Cpn.,
6/15/43
.......................................
5,500,000
2,577,895
196,590,927
Pennsylvania
2.2%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
5,600,822
Bucks
County
Water
and
Sewer
Authority
,
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/33
.................
5,500,000
5,655,525
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/37
.................
10,520,000
10,817,476
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/41
.................
5,110,000
5,254,496
City
of
Philadelphia
,
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/45
.........................
1,500,000
1,714,494
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/50
.........................
1,825,000
2,074,697
Water
&
Wastewater,
Revenue,
2015
A,
5%,
7/01/45
.......................
15,000,000
16,866,171
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2013
A-2,
Pre-Refunded,
5%,
6/01/42
..............
5,400,000
5,684,217
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2015
A,
5%,
6/01/33
...........................
4,550,000
5,326,508
Commonwealth
of
Pennsylvania
,
GO,
First
Series
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
8/15/26
......................................................
20,805,000
24,967,007
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue,
2016,
5%,
11/01/41
........................................
5,000,000
6,014,198
Revenue,
2016,
5%,
11/01/46
........................................
10,315,000
12,298,279
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)
Erie
City
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
12/01/43
..............
$
5,000,000
$
5,996,045
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
4/01/39
.............................................
9,000,000
10,640,207
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
682,944
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
1,195,460
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
9,994,765
Montour
School
District
,
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/40
.............................
3,170,000
3,668,293
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/41
.............................
2,000,000
2,309,736
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/42
.............................
2,000,000
2,304,177
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/40
.....
3,575,000
4,161,712
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/41
.....
5,425,000
6,298,243
Pennsylvania
Turnpike
Commission
,
Revenue,
2009
C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
6,318,829
Revenue,
2020
B,
5%,
12/01/45
.......................................
5,000,000
6,377,092
Revenue,
2020
B,
5%,
12/01/50
.......................................
8,000,000
10,156,494
Philadelphia
Gas
Works
Co.
,
Revenue
,
Sixteenth
A
,
AGMC
Insured
,
4
%
,
8/01/45
...
4,000,000
4,634,051
School
District
of
Philadelphia
(The)
,
GO,
2016
F,
Refunding,
5%,
9/01/33
...................................
6,415,000
7,744,459
GO,
2016
F,
Refunding,
5%,
9/01/36
...................................
4,090,000
4,909,390
Sports
&
Exhibition
Authority
of
Pittsburgh
and
Allegheny
County
,
Revenue
,
2010
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/35
.................................
18,000,000
18,043,184
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
12,148,197
Upper
Merion
Area
School
District
,
GO
,
2021
A
,
4
%
,
1/15/46
...................
5,000,000
5,818,521
Westmoreland
County
Municipal
Authority
,
Revenue
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
8/15/42
......................................................
17,205,000
20,031,405
245,707,094
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
5,500,000
6,296,500
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue,
10-A,
6.5%,
10/01/22
.......................................
170,000
170,668
Revenue,
10-A,
6.5%,
4/01/27
........................................
130,000
130,480
Revenue,
15-A,
6.85%,
10/01/24
......................................
120,000
120,517
6,718,165
South
Carolina
1.3%
City
of
Columbia
,
Waterworks
&
Sewer
System,
Revenue,
2019
A,
4%,
2/01/44
.................
5,250,000
6,114,175
Waterworks
&
Sewer
System,
Revenue,
2019
A,
Pre-Refunded,
5%,
2/01/49
.....
8,000,000
10,489,280
City
of
Rock
Hill
,
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/41
......................
7,690,000
8,915,092
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/47
......................
5,000,000
5,756,982
County
of
Greenwood
,
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/37
.....
8,465,000
9,534,957
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/39
.....
1,195,000
1,340,960
South
Carolina
Jobs-Economic
Development
Authority
,
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/43
......
20,000,000
24,118,328
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
15,000,000
17,924,627
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,
2019
B,
5%,
7/01/44
........................................
$
10,000,000
$
12,253,806
Revenue,
2019
B,
5%,
7/01/54
........................................
10,365,000
12,579,367
South
Carolina
Public
Service
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
12/01/55
.
20,000,000
23,050,728
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Revenue
,
2020
A
,
3
%
,
7/01/40
......................................................
2,000,000
2,121,498
Spartanburg
Regional
Health
Services
District
,
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/37
........................................
1,415,000
1,647,146
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/39
........................................
1,410,000
1,633,695
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/45
........................................
2,750,000
3,138,372
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
3%,
4/15/49
........................................
1,795,000
1,854,207
142,473,220
South
Dakota
1.2%
Huron
School
District
No.
2-2
,
GO
,
2013
,
Refunding
,
5
%
,
6/15/39
...............
4,000,000
4,496,939
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2011
A,
5.125%,
8/01/46
.....................................
7,000,000
7,073,897
Revenue,
2012
A,
Refunding,
5%,
8/01/46
...............................
6,005,000
6,307,576
Revenue,
2015
A,
Refunding,
5%,
8/01/38
...............................
3,475,000
4,039,928
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
11,071,602
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
51,050,000
60,772,968
Monument
Health
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
..............
10,920,000
12,320,077
Monument
Health
Obligated
Group,
Revenue,
2017,
5%,
9/01/40
..............
10,000,000
11,859,542
Monument
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
9/01/50
...
12,500,000
14,135,368
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
6,528,671
138,606,568
Tennessee
2.2%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
4
%
,
8/01/44
................
2,000,000
2,265,850
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
4
%
,
4/01/41
.............................................
25,000,000
26,686,420
City
of
Memphis
,
Electric
System
,
Revenue
,
2020
A
,
4
%
,
12/01/50
..............
6,000,000
7,106,071
Johnson
City
Health
&
Educational
Facilities
Board
,
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
1998,
Pre-Refunded,
NATL
Insured,
5.125%,
7/01/25
......................................
65,000
66,065
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
1998,
NATL
Insured,
ETM,
5.25%,
7/01/28
.............................................
8,500,000
9,205,911
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/42
.........................
35,000,000
41,191,388
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/43
.........................................
10,000,000
12,026,792
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
13,158,881
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Water
&
Sewer,
Revenue,
2017
A,
5%,
7/01/46
...........................
6,000,000
7,391,046
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/42
...........................
21,645,000
26,681,791
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/46
...........................
15,925,000
19,617,068
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue
,
2019
B
,
5
%
,
7/01/44
......
20,000,000
24,766,152
b,f
Tennergy
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
9/01/28
.................
25,000,000
29,669,058
Tennessee
Housing
Development
Agency
,
Revenue
,
2018-4
,
Refunding
,
4
%
,
7/01/43
6,265,000
6,905,850
Tennessee
State
School
Bond
Authority
,
Revenue
,
2017
A
,
5
%
,
11/01/47
..........
15,000,000
18,357,876
245,096,219
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)
Texas
10.2%
Central
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
1/01/45
.....................
$
5,000,000
$
5,731,331
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/40
.......................
12,505,000
14,522,902
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/46
.......................
11,245,000
13,053,576
Revenue,
Sub.
Lien,
2021
C,
5%,
1/01/27
...............................
15,000,000
17,832,588
Central
Texas
Turnpike
System
,
Revenue,
2015-B,
Refunding,
5%,
8/15/37
...............................
10,000,000
11,255,103
Revenue,
2015-C,
Refunding,
5%,
8/15/37
...............................
5,000,000
5,595,364
Revenue,
2015-C,
Refunding,
5%,
8/15/42
...............................
20,000,000
22,268,290
Revenue,
First
Tier,
Pre-Refunded,
BAM
Insured,
5%,
8/15/41
................
25,665,000
27,261,028
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
22,822,364
City
of
Austin
,
Electric
Utility,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
...................
10,000,000
11,708,544
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/38
.......
20,000,000
21,828,902
City
of
Corpus
Christi
,
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/38
.........
6,000,000
6,635,282
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/43
.........
7,000,000
7,741,163
Utility
System,
Revenue,
Junior
Lien,
2015
A,
5%,
7/15/40
...................
13,200,000
15,309,071
City
of
Dallas
,
Revenue
,
2009
,
Refunding
,
AGMC
Insured
,
5.25
%
,
8/15/34
........
18,975,000
19,042,720
City
of
Houston
,
Combined
Utility
System
,
Revenue,
First
Lien
,
2002
C
,
Refunding
,
4
%
,
11/15/43
........................................................
7,500,000
9,075,341
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
10,617,173
City
of
San
Antonio
,
Electric
&
Gas
Systems
,
Revenue,
Junior
Lien
,
2013
,
Pre-
Refunded
,
5
%
,
2/01/38
.............................................
10,000,000
10,834,098
City
of
San
Marcos
,
Electric
Utility
System
,
Revenue
,
2013
,
BAM
Insured
,
5
%
,
11/01/33
6,300,000
6,722,951
Dallas
Area
Rapid
Transit
,
Revenue,
Senior
Lien,
2016
A,
Refunding,
5%,
12/01/46
....................
10,000,000
11,707,943
Revenue,
Senior
Lien,
2016
A,
Refunding,
5%,
12/01/48
....................
12,200,000
14,271,809
Dallas
Fort
Worth
International
Airport
,
Revenue
,
2013
D
,
Refunding
,
5.25
%
,
11/01/32
10,000,000
11,146,363
Ector
County
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
8/15/36
......................................................
10,355,000
11,492,894
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
17,594,798
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
23,709,396
Goose
Creek
Consolidated
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/38
..............................................
6,045,000
6,571,799
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn.,
10/01/45
..................................
10,000,000
11,451,671
Revenue,
2018
A,
5%,
10/01/48
.......................................
7,720,000
9,495,169
Revenue,
First
Tier,
2020
C,
Refunding,
4%,
10/01/45
......................
15,455,000
18,053,708
d,e
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
FRN
,
2003
B
,
1.5
%
,
5/01/28
2,000,000
2,000,000
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group,
Revenue,
2015,
5%,
12/01/45
.....
30,000,000
34,480,746
Memorial
Hermann
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/45
....................................................
15,000,000
17,360,301
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien
,
2018
A
,
Refunding
,
5
%
,
8/15/43
.........................................................
6,000,000
7,433,728
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
AGMC
Insured,
3.125%,
11/15/56
.....
5,000,000
5,328,708
Revenue,
Third
Lien,
2004
A-3,
NATL
Insured,
Zero
Cpn.,
11/15/37
............
6,300,000
2,654,933
Hidalgo
County
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2013,
Pre-Refunded,
5.25%,
12/01/38
.................
5,000,000
5,642,654
Revenue,
Senior
Lien,
2013,
Pre-Refunded,
5%,
12/01/43
...................
5,000,000
5,610,586
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)
Houston
Higher
Education
Finance
Corp.
,
Houston
Baptist
University
,
Revenue
,
2021
,
4
%
,
10/01/51
.....................................................
$
1,200,000
$
1,318,899
Lamar
Consolidated
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.........................................................
30,000,000
36,085,056
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
Refunding,
5%,
5/15/36
...
10,000,000
10,888,879
LCRA
Transmission
Services
Corp.,
Revenue,
2018,
Refunding,
5%,
5/15/43
.....
10,000,000
12,238,728
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/34
.....
1,850,000
2,401,989
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/35
.....
2,225,000
2,883,039
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/36
.....
2,750,000
3,552,131
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
Pre-Refunded,
5%,
4/01/48
........................................................
7,825,000
9,483,572
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
Pre-Refunded,
5%,
4/01/37
........................................................
2,500,000
3,114,551
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016
A-1,
5%,
4/01/46
........
6,000,000
7,085,790
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
8,600,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
6,203,265
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
12,458,586
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
249,855
North
East
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2016
A
,
5
%
,
1/01/41
.........................................................
16,750,000
19,117,899
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
20,000,000
22,225,476
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
22,068,064
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/35
.........
10,000,000
11,511,009
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/38
.........
10,000,000
11,468,082
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/43
.
47,000,000
57,061,826
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/48
.
33,500,000
40,443,974
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Refunding,
6.5%,
1/01/43
.....
25,000,000
29,747,492
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017
B,
Refunding,
5%,
1/01/48
10,000,000
11,979,097
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
25,250,000
30,220,268
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
4,175,666
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
7,500,000
2,661,351
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
Zero
Cpn.,
9/01/45
....
25,000,000
37,362,993
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,783,054
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
36,500,000
37,937,085
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/43
......................
12,000,000
14,839,212
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/48
......................
10,000,000
12,290,525
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,016,563
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
3,010,399
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013
A
,
5
%
,
10/01/38
...............................................
24,380,000
26,909,698
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
12,261,787
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
5.25%,
12/01/39
10,000,000
11,141,599
Hendrick
Medical
Center
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5.5%,
9/01/43
........................................................
5,350,000
6,004,712
Texas
Health
Resources
Obligated
Group,
Revenue,
2015
A,
5%,
11/15/52
......
5,000,000
5,718,675
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)
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group
,
Revenue
,
1994
,
FGIC
Insured
,
ETM,
6
%
,
9/01/24
....................
$
3,460,000
$
3,827,926
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/28
................................
4,500,000
5,702,074
Revenue,
2021,
Refunding,
5%,
12/15/29
................................
7,500,000
9,645,752
Revenue,
2021,
Refunding,
5%,
12/15/30
................................
8,355,000
10,902,244
Revenue,
2021,
Refunding,
5%,
12/15/31
................................
6,750,000
8,945,961
Revenue,
2021,
Refunding,
5%,
12/15/32
................................
7,535,000
10,130,496
Texas
Municipal
Power
Agency
,
Revenue,
Sub.
Lien
,
2010
,
Refunding
,
5
%
,
9/01/40
.
15,250,000
15,302,160
Texas
Transportation
Commission
,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/48
...........................
6,250,000
1,943,270
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/49
...........................
5,000,000
1,474,186
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/50
...........................
5,500,000
1,529,260
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
29,657,653
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
5%,
4/15/49
15,000,000
18,909,460
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
5,592,717
1,155,949,002
Utah
1.3%
Central
Utah
Water
Conservancy
District
,
Revenue,
2017
B,
Refunding,
4%,
10/01/37
..............................
2,600,000
3,057,233
Revenue,
2017
B,
Refunding,
4%,
10/01/38
..............................
10,000,000
11,748,205
City
of
Lehi
,
Sales
Tax
,
Revenue
,
2021
,
AGMC
Insured
,
4
%
,
2/01/35
.............
1,170,000
1,433,019
County
of
Utah
,
IHC
Health
Services,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
5/15/43
.........................................................
2,750,000
3,260,166
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
6,000,000
6,914,181
Salt
Lake
City
Corp.
,
Airport,
Revenue,
2017
A,
5%,
7/01/42
..................................
15,000,000
17,878,946
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
10,000,000
11,896,414
Airport,
Revenue,
2018
A,
5%,
7/01/48
..................................
9,400,000
11,368,781
Airport,
Revenue,
2018
A,
5.25%,
7/01/48
...............................
10,000,000
12,261,262
University
of
Utah
(The)
,
Revenue,
2013
A,
Pre-Refunded,
5%,
8/01/43
............................
21,975,000
24,374,927
Revenue,
2018
A,
5%,
8/01/44
........................................
12,240,000
15,182,920
Utah
Infrastructure
Agency
,
Revenue,
2021,
3%,
10/15/26
........................................
550,000
609,415
Revenue,
2021,
4%,
10/15/28
........................................
350,000
416,539
Revenue,
2021,
4%,
10/15/32
........................................
540,000
646,253
Revenue,
2021,
4%,
10/15/38
........................................
500,000
584,261
Revenue,
2021,
4%,
10/15/41
........................................
1,450,000
1,680,771
Revenue,
2021,
3%,
10/15/45
........................................
2,000,000
2,056,183
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
11,788,917
Weber
Basin
Water
Conservancy
District
,
Revenue
,
2013
B
,
Pre-Refunded
,
5
%
,
4/01/39
.........................................................
7,180,000
7,847,676
145,006,069
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
4,984,967
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
4%,
11/01/50
5,000,000
5,741,408
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
12/01/36
...........................................
5,000,000
5,899,495
16,625,870
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)
Virginia
1.2%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
$
2,350,000
$
2,371,315
Hampton
Roads
Sanitation
District
,
Revenue
,
2018
A
,
Pre-Refunded
,
5
%
,
10/01/47
..
14,575,000
18,548,098
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien,
2018
A,
5%,
7/01/42
..............................
25,000,000
30,660,378
Revenue,
Senior
Lien,
2020
A,
5.25%,
7/01/60
............................
25,000,000
32,176,290
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
4
%
,
5/15/41
.......
13,585,000
15,939,285
Virginia
Housing
Development
Authority
,
Revenue
,
2019
E
,
3.1
%
,
12/01/45
........
6,760,000
7,086,777
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
74,656
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2012,
5%,
1/01/40
.............
14,535,000
14,942,705
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
1/01/44
.............
7,500,000
7,708,355
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
7/01/49
.............
3,000,000
3,082,737
National
Senior
Campuses,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/45
........................................................
4,000,000
4,421,683
137,012,279
Washington
2.7%
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
22,170,000
25,687,676
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
12,452,221
County
of
King
,
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/49
................
12,000,000
14,408,581
King
County
Housing
Authority
,
Revenue,
2019,
Refunding,
3%,
11/01/39
................................
10,000,000
10,830,905
Revenue,
2020,
Refunding,
3%,
6/01/40
.................................
5,000,000
5,391,519
Klickitat
County
Public
Utility
District
No.
1
,
Revenue
,
2019
A
,
Refunding
,
AGMC
Insured
,
3
%
,
12/01/41
..............................................
3,030,000
3,242,076
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,018
North
Thurston
Public
Schools
,
GO,
2020,
4%,
12/01/34
.............................................
5,000,000
6,149,516
GO,
2020,
4%,
12/01/35
.............................................
5,000,000
6,108,783
GO,
2020,
4%,
12/01/36
.............................................
6,000,000
7,277,842
Port
of
Seattle
,
Revenue,
2018
A,
5%,
5/01/43
........................................
15,500,000
18,259,955
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
4,527,776
State
of
Washington
,
GO,
2019
D,
5%,
6/01/43
............................................
11,040,000
13,932,599
GO,
2019
D,
5%,
6/01/44
............................................
11,595,000
14,604,025
GO,
Senior
Lien,
2012
C,
Refunding,
5%,
6/01/33
.........................
5,000,000
5,018,058
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
35,707,303
Washington
Health
Care
Facilities
Authority
,
Revenue,
2014
D,
Pre-Refunded,
5%,
10/01/41
...........................
150,000
172,892
Revenue,
2014
D,
5%,
10/01/41
.......................................
9,850,000
11,177,720
Fred
Hutchinson
Cancer
Research
Center,
Revenue,
2017
A,
5%,
1/01/47
.......
10,000,000
11,607,157
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
28,576,332
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012
A,
5%,
10/01/42
..
10,175,000
10,768,543
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
2,610,000
3,036,422
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/45
........................................................
2,105,000
2,677,793
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
........................................................
5,000,000
5,762,319
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/50
........................................................
3,000,000
3,796,004
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/29
250,000
327,682
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/30
265,000
353,905
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)
Washington
(continued)
Washington
Health
Care
Facilities
Authority,
(continued)
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/33
$
250,000
$
329,828
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/34
300,000
318,874
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/40
870,000
1,032,803
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/45
1,200,000
1,400,422
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/48
910,000
1,054,278
Seattle
Children's
Hospital
Obligated
Group,
Revenue,
2015
B,
Refunding,
5%,
10/01/38
.......................................................
15,000,000
17,187,675
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
4,611,700
Washington
State
Convention
Center
Public
Facilities
District
,
Revenue
,
2018
,
5
%
,
7/01/43
.........................................................
13,870,000
16,426,725
304,222,927
West
Virginia
0.9%
Berkeley
County
Public
Service
Sewer
District
,
Revenue
,
2016
B
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/36
...............................................
1,000,000
1,191,272
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
16,051,253
Charleston
Area
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/38
....................................................
3,040,000
3,710,504
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/42
7,000,000
8,247,701
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
10,190,000
11,937,995
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
24,609,551
West
Virginia
University
,
Revenue
,
2014
A
,
Pre-Refunded
,
5
%
,
10/01/44
..........
21,800,000
25,328,267
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
6,075,420
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
6,499,256
103,651,219
Wisconsin
1.6%
Ashwaubenon
Community
Development
Authority
,
County
of
Brown,
Revenue,
2019,
Zero
Cpn.,
6/01/49
.......................
16,185,000
6,160,210
County
of
Brown,
Revenue,
2019,
Zero
Cpn.,
6/01/54
.......................
48,000,000
14,584,003
City
of
Superior
,
DTE
Electric
Co.
,
Revenue
,
E-1991
,
Refunding
,
NATL
Insured
,
6.9
%
,
8/01/21
.........................................................
3,000,000
3,049,500
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
3,750,000
3,821,460
b,c
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
.......................................................
29,600,000
29,907,464
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,452,875
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/51
........................................................
5,705,000
6,486,186
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/56
........................................................
2,250,000
2,537,756
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
2,277,305
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/45
.....
14,000,000
16,123,534
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn.,
12/15/45
........................................................
65,000,000
28,545,329
Wisconsin
Health
&
Educational
Facilities
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2013
B-2,
4%,
11/15/43
.............
10,000,000
11,593,669
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
17,242,363
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
23,100,456
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)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Thedacare,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
$
5,135,000
$
5,951,248
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/46
......
895,000
1,002,226
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/51
......
1,335,000
1,486,043
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/55
......
1,760,000
1,940,859
177,262,486
Wyoming
0.1%
County
of
Laramie
,
Cheyenne
Regional
Medical
Center
,
Revenue
,
2021
,
Refunding
,
4
%
,
5/01/35
......................................................
500,000
602,910
Wyoming
Community
Development
Authority
,
Revenue
,
2018
1
,
Refunding
,
3.65
%
,
12/01/33
........................................................
2,150,000
2,257,579
Wyoming
Municipal
Power
Agency,
Inc.
,
Revenue
,
2017
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
1/01/42
...............................................
7,000,000
8,697,712
11,558,201
U.S.
Territories
3.8%
District
of
Columbia
3.1%
District
of
Columbia
,
GO,
2019
A,
5%,
10/15/44
...........................................
25,000,000
31,506,077
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,980,287
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,159,126
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
7,000,000
7,021,845
Association
of
American
Medical
Colleges,
Revenue,
2011
B,
Pre-Refunded,
5.25%,
10/01/41
.......................................................
15,000,000
15,316,536
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,660,000
24,125,831
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
24,985,000
29,158,165
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
4,758,822
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/15/40
........................................................
6,830,000
7,875,197
Gallaudet
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/46
...............
2,150,000
2,719,836
Gallaudet
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/51
...............
2,500,000
3,153,087
Income
Tax,
Revenue,
2019
A,
4%,
3/01/44
..............................
10,000,000
11,878,750
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
2,275,000
2,627,335
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
16,630,000
18,464,302
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
30,774,055
Water
&
Sewer
Authority,
Revenue,
Sub.
Lien,
2019
A,
5%,
10/01/44
...........
7,350,000
9,414,482
Metropolitan
Washington
Airports
Authority
,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
..............................
15,000,000
18,438,552
Revenue,
2019
A,
Refunding,
5%,
10/01/44
..............................
17,500,000
21,634,522
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009
C,
AGMC
Insured,
6.5%,
10/01/41
.
25,000,000
32,122,707
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
15,461,478
Washington
Convention
&
Sports
Authority
,
Tax
Allocation,
Senior
Lien
,
2010-A
,
5
%
,
10/01/40
........................................................
16,415,000
16,463,170
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2020
A,
4%,
7/15/45
........................................
10,000,000
11,826,395
Revenue,
2020
A,
5%,
7/15/45
........................................
10,000,000
12,825,162
349,705,719
Puerto
Rico
0.7%
Commonwealth
of
Puerto
Rico
,
GO
,
AGMC
Insured
,
5.5
%
,
7/01/29
..............
5,885,000
6,973,407
Puerto
Rico
Electric
Power
Authority
,
g
Revenue,
2012A-RSA-1
2012A,
5%,
7/01/42
.............................
18,925,000
17,552,937
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
2,480,000
2,775,670
g
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
15,000,000
13,950,000
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
1,000,000
1,231,130
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
s
See
Abbreviations
on
page
56
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Highway
&
Transportation
Authority,
(continued)
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
...................
$
11,980,000
$
14,752,583
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/28
....................
2,500,000
2,980,947
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
2,500,000
2,777,972
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
12,135,000
15,087,678
78,082,324
Total
U.S.
Territories
....................................................................
427,788,043
Total
Municipal
Bonds
(Cost
$10,261,596,822)
..................................
11,315,531,707
Total
Long
Term
Investments
(Cost
$10,263,852,555)
............................
11,317,783,082
a
a
a
a
a
Short
Term
Investments
0.0%
Municipal
Bonds
0.0%
California
0.0%
h
University
of
California
,
Revenue
,
2013
AL-4
,
Refunding
,
Daily
VRDN
and
Put
,
0.02
%
,
5/15/48
.........................................................
1,600,000
1,600,000
Georgia
0.0%
h
Athens-Clarke
County
Unified
Government
Development
Authority
,
University
of
Georgia
Athletic
Association,
Inc.
,
Revenue
,
2005
B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
7/01/35
...................................
1,875,000
1,875,000
Pennsylvania
0.0%
h
Allegheny
County
Higher
Education
Building
Authority
,
Carnegie
Mellon
University
,
Revenue
,
2008
A
,
Refunding
,
SPA
Bank
of
New
York
Mellon
(The)
,
Daily
VRDN
and
Put
,
0.03
%
,
12/01/37
...............................................
2,000,000
2,000,000
Total
Municipal
Bonds
(Cost
$5,475,000)
.......................................
5,475,000
Total
Short
Term
Investments
(Cost
$5,475,000
)
.................................
5,475,000
a
Total
Investments
(Cost
$10,269,327,555)
99.6%
................................
$11,323,258,082
Other
Assets,
less
Liabilities
0.4%
.............................................
34,485,269
Net
Assets
100.0%
...........................................................
$11,357,743,351
Rounds
to
less
than
0.1%
of
net
assets.  
a
See
Note
3(h)
regarding
investments
in
affiliated
management
investment
companies.  
b
The
maturity
date
shown
represents
the
mandatory
put
date.  
c
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,
2021,
the
aggregate
value
of
these
securities
was
$173,967,154,
representing
1.5%
of
net
assets.  
d
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).  
e
The
coupon
rate
shown
represents
the
rate
at
period
end.  
f
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).  
g
See
Note
7
regarding
defaulted
securities.  
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
`
h
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,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$10,267,071,822
Cost
-
Non-controlled
affiliates
(Note
3
h
)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$11,321,006,707
Value
-
Non-controlled
affiliates
(Note
3
h
)
.......................................................
2,251,375
Cash
....................................................................................
161,419
Receivables:
Investment
securities
sold
...................................................................
4,194,101
Capital
shares
sold
........................................................................
7,020,577
Dividends
and
interest
.....................................................................
127,707,068
Total
assets
..........................................................................
11,462,341,247
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
78,180,084
Capital
shares
redeemed
...................................................................
16,870,660
Management
fees
.........................................................................
4,231,703
Distribution
fees
..........................................................................
1,217,014
Transfer
agent
fees
........................................................................
1,062,549
Distributions
to
shareholders
.................................................................
2,451,545
Accrued
expenses
and
other
liabilities
...........................................................
584,341
Total
liabilities
.........................................................................
104,597,896
Net
assets,
at
value
.................................................................
$11,357,743,351
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$10,723,658,285
Total
distributable
earnings
(losses)
.............................................................
634,085,066
Net
assets,
at
value
.................................................................
$11,357,743,351
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
April
30,
2021
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,770,979,019
Shares
outstanding
........................................................................
143,911,944
Net
asset
value
per
share
a
..................................................................
$12.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$12.79
Class
A1:
Net
assets,
at
value
.......................................................................
$6,919,288,740
Shares
outstanding
........................................................................
562,236,637
Net
asset
value
per
share
a
..................................................................
$12.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$12.79
Class
C:
Net
assets,
at
value
.......................................................................
$543,195,927
Shares
outstanding
........................................................................
44,170,609
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$12.30
Class
R6:
Net
assets,
at
value
.......................................................................
$294,726,720
Shares
outstanding
........................................................................
23,931,154
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.32
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,829,552,945
Shares
outstanding
........................................................................
148,510,256
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.32
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,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3
h
)
.............................................................
$18,887
Interest:
Unaffiliated
issuers
........................................................................
386,644,050
Total
investment
income
...................................................................
386,662,937
Expenses:
Management
fees
(Note
3
a
)
...................................................................
49,439,159
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
3,718,277
    Class
A1
...............................................................................
6,996,135
    Class
C
................................................................................
3,813,237
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
967,487
    Class
A1
...............................................................................
4,512,968
    Class
C
................................................................................
378,178
    Class
R6
...............................................................................
66,809
    Advisor
Class
............................................................................
1,090,724
Custodian
fees
(Note
4
)
......................................................................
52,671
Reports
to
shareholders
......................................................................
416,593
Registration
and
filing
fees
....................................................................
284,025
Professional
fees
...........................................................................
187,190
Trustees'
fees
and
expenses
..................................................................
134,724
Other
....................................................................................
317,936
Total
expenses
.........................................................................
72,376,113
Expense
reductions
(Note
4
)
...............................................................
(78,653)
Expenses
waived/paid
by
affiliates
(Note
3
h
and
3
f
)
..............................................
(1,710)
Net
expenses
.........................................................................
72,295,750
Net
investment
income
................................................................
314,367,187
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
23,829,095
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
600,065,585
Non-controlled
affiliates
(Note
3
h
)
...........................................................
(4,358)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
600,061,227
Net
realized
and
unrealized
gain
(loss)
............................................................
623,890,322
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$938,257,509
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.
48
Franklin
Federal
Tax-Free
Income
Fund
Year
Ended
April
30,
2021
Year
Ended
April
30,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$314,367,187
$329,536,495
Net
realized
gain
(loss)
.................................................
23,829,095
(40,968,607)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
600,061,227
(157,229,142)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
938,257,509
131,338,746
Distributions
to
shareholders:
Class
A
.............................................................
(39,853,805)
(25,392,441)
Class
A1
............................................................
(198,996,376)
(238,491,163)
Class
C
.............................................................
(13,507,112)
(19,532,457)
Class
R6
............................................................
(7,150,728)
(6,332,858)
Advisor
Class
........................................................
(49,295,844)
(39,603,208)
Total
distributions
to
shareholders
..........................................
(308,803,865)
(329,352,127)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
585,252,083
572,147,597
Class
A1
............................................................
(324,812,303)
(860,761,892)
Class
C
.............................................................
(151,868,730)
(173,859,799)
Class
R6
............................................................
85,157,247
23,364,313
Advisor
Class
........................................................
271,676,537
279,874,208
Total
capital
share
transactions
............................................
465,404,834
(159,235,573)
Net
increase
(decrease)
in
net
assets
...................................
1,094,858,478
(357,248,954)
Net
assets:
Beginning
of
year
.......................................................
10,262,884,873
10,620,133,827
End
of
year
...........................................................
$11,357,743,351
$10,262,884,873
Franklin
Federal
Tax-Free
Income
Fund
49
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
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
after
they
have
been
held
for
10
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
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
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
over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
Basis
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,
it
may
sell
the
securities
before
the
settlement
date.
Sufficient
assets
have
been
segregated
for
these
securities.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
50
franklintempleton.com
Annual
Report
c.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
April
30,
2021,
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. 
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Fund's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
51
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
April
30,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Year
Ended
April
30,
2021
Year
Ended
April
30,
2020
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
63,479,889
$770,686,020
59,617,714
$713,957,350
Shares
issued
in
reinvestment
of
distributions
..........
3,045,305
37,041,836
1,981,080
23,766,928
Shares
redeemed
...............................
(18,310,177)
(222,475,773)
(13,911,324)
(165,576,681)
Net
increase
(decrease)
..........................
48,215,017
$585,252,083
47,687,470
$572,147,597
Class
A1
Shares:
Shares
sold
...................................
18,955,906
$230,148,692
27,283,498
$326,563,361
Shares
issued
in
reinvestment
of
distributions
..........
14,554,420
176,881,997
17,709,613
212,584,460
Shares
redeemed
...............................
(60,238,549)
(731,842,992)
(117,728,402)
(1,399,909,713)
Net
increase
(decrease)
..........................
(26,728,223)
$(324,812,303)
(72,735,291)
$(860,761,892)
Class
C
Shares:
Shares
sold
...................................
7,260,239
$88,151,626
8,968,744
$107,603,111
Shares
issued
in
reinvestment
of
distributions
..........
1,037,395
12,592,790
1,476,907
17,715,916
Shares
redeemed
a
..............................
(20,829,055)
(252,613,146)
(25,012,960)
(299,178,826)
Net
increase
(decrease)
..........................
(12,531,421)
$(151,868,730)
(14,567,309)
$(173,859,799)
Class
R6
Shares:
Shares
sold
...................................
9,720,742
$118,377,493
6,018,228
$72,175,233
Shares
issued
in
reinvestment
of
distributions
..........
554,389
6,748,196
481,054
5,777,881
Shares
redeemed
...............................
(3,292,584)
(39,968,442)
(4,596,552)
(54,588,801)
Net
increase
(decrease)
..........................
6,982,547
$85,157,247
1,902,730
$23,364,313
Advisor
Class
Shares:
Shares
sold
...................................
46,755,602
$568,572,485
59,408,796
$705,459,688
Shares
issued
in
reinvestment
of
distributions
..........
3,587,947
43,668,967
2,781,167
33,398,085
Shares
redeemed
...............................
(28,020,923)
(340,564,915)
(38,321,983)
(458,983,565)
Net
increase
(decrease)
..........................
22,322,626
$271,676,537
23,867,980
$279,874,208
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Templeton
Distributors,
Inc.
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
52
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2021,
the
gross
effective
investment
management
fee
rate
was
0.449%
of
the
Fund’s
average
daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund’s
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
and
A1
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31. 
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
year:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$247,625
CDSC
retained
..............................................................................
$156,817
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
53
franklintempleton.com
Annual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
During
the
year
ended
April
30,
2021,
the
Fund
paid
transfer
agent
fees
of
$7,016,166,
of
which $3,062,888
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
each
class
until
August
31,
2021.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
year
ended
April
30,
2021,
these
purchase
and
sale
transactions
aggregated
$348,712,588
and
$357,950,000,
respectively.
h.
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
Funds
do
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,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
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,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
    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
Liberty
Federal
Tax-Free
Bond
ETF
................
$—
$2,255,733
$—
$—
$(4,358)
$2,251,375
83,000
$18,887
Total
Affiliated
Securities
....
$—
$2,255,733
$—
$—
$(4,358)
$2,251,375
$18,887
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
54
franklintempleton.com
Annual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2021,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended April
30,
2021
the
Fund
utilized
$27,190,491
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2021
and
2020
,
was
as
follows:
At
April
30,
2021,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
tax
exempt
income
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
April
30,
2021,
aggregated
$2,516,415,978
and
$1,759,728,685,
respectively.
7.
Defaulted
Securities
 The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
April
30,
2021,
the
aggregate
value
of
these
securities
was
$31,502,937,
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
security
has/securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$219,329,148
Long
term
................................................................................
207,883,652
Total
capital
loss
carryforwards
...............................................................
$427,212,800
2021
2020
Distributions
paid
from:
Tax
exempt
income
........................................................
$308,803,865
$329,352,127
Cost
of
investments
..........................................................................
$10,269,922,110
Unrealized
appreciation
........................................................................
$1,062,238,355
Unrealized
depreciation
........................................................................
(8,902,383)
Net
unrealized
appreciation
(depreciation)
..........................................................
$1,053,335,972
Distributable
earnings:
Undistributed
tax
exempt
income
.................................................................
$10,413,432
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
55
franklintempleton.com
Annual
Report
8.
Concentration
of
Risk
Investing
in
Puerto
Rico
securities
may
expose
the Fund
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
10.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
4,
2022.
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,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
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)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
56
franklintempleton.com
Annual
Report
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,
2021,
in
valuing
the
Fund’s
assets
carried
at
fair
value,
is
as
follows:
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
The
amendments
in
the
ASU
provides
optional
temporary
financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021.
The
ASU
is
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022. Management
has
reviewed
the
requirements
and
believes
the
adoption
of
this
ASU
will
not
have
a
material
impact
on
the
financial
statements.
13.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
2,251,375
$
$
$
2,251,375
Municipal
Bonds
.........................
11,315,531,707
11,315,531,707
Short
Term
Investments
...................
5,475,000
5,475,000
Total
Investments
in
Securities
...........
$2,251,375
$11,321,006,707
$—
$11,323,258,082
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
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SPA
Standby
Purchase
Agreement
11.
Fair
Value
Measurements
(continued)
Franklin
Federal
Tax-Free
Income
Fund
57
franklintempleton.com
Annual
Report
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Board
of
Trustees
of
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
statement
of
investments,
of
Franklin
Federal
Tax-Free
Income
Fund
(the
"Fund")
as
of
April
30,
2021,
the
related
statement
of
operations
for
the
year
ended
April
30,
2021,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2021,
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,
2021,
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,
2021
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,
2021
by
correspondence
with
the
custodian
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
18,
2021
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)
58
franklintempleton.com
Annual
Report
Under
Section
852(b)(5)(A)
of
the
Internal
Revenue
Code,
the
Fund
hereby
reports
100%
of
the
distributions
paid
from
net
investment
income
as
exempt-interest
dividends
for
the
fiscal
year
ended
April
30,
2021.
A
portion
of
the
Fund’s
exempt-
interest
dividends
may
be
subject
to
the
federal
alternative
minimum
tax.
By
mid-February
2022,
shareholders
will
be
notified
of
amounts
for
use
in
preparing
their
2021
income
tax
returns.
Franklin
Federal
Tax-Free
Income
Fund
Board
Members
and
Officers
59
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
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
125
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
107
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
126
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
60
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
126
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-April
2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-May
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
126
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Private
investor;
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
(May
2019-January
1,
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
126
Graham
Holdings
Company
(education
and
media
organization)
(2011-present);
and
formerly
,
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
61
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
Williams
(1956)
Trustee
Since
May
2021
107
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)
(January
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)
Trustee
Since
2007
137
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,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
39
of
the
investment
companies
in
Franklin
Templeton;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015),
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Since
2013
126
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,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
37
of
the
investment
companies
in
Franklin
Templeton.
Ben
Barber
(1969)
Vice
President
Since
July
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
seven
of
the
investment
companies
in
Franklin
Templeton;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
42
of
the
investment
companies
in
Franklin
Templeton.
Independent
Board
Members
(continued)
Franklin
Federal
Tax-Free
Income
Fund
62
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
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
October
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Advisory
Services,
LLC,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
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
17
of
the
investment
companies
in
Franklin
Templeton.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
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;
Vice
President,
Franklin
Templeton
Distributors,
Inc.
and
FASA,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
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
42
of
the
investment
companies
in
Franklin
Templeton;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Robert
G.
Kubilis
(1973)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
December
2020
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Lauderdale,
FL
33301-1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting
and
officer
of
39
of
the
investment
companies
in
Franklin
Templeton
Robert
Lim
(1948)
Vice
President
AML
Compliance
Since
2016
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Lauderdale,
FL
33301-1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Franklin
Templeton
Companies,
LLC;
Chief
Compliance
Officer,
Franklin
Templeton
Distributors,
Inc.
and
Franklin
Templeton
Investor
Services,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Associate
General
Counsel
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
63
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
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**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-May
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.
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
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
42
of
the
investment
companies
in
Franklin
Templeton.
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
42
of
the
investment
companies
in
Franklin
Templeton.
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
64
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
FEDERAL
TAX-FREE
INCOME
FUND
(Fund)
At
a
meeting
held
on
February
23,
2021
(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
telephonic
contract
renewal
meeting
at
which
the
Independent
Trustees
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters
and,
in
some
cases,
requested
additional
information
from
the
Manager
relating
to
the
contract.
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
such
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,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Fund.
The
Board
noted
management’s
continuing
efforts
and
expenditures
in
establishing
effective
business
continuity
plans
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
such
as
cybersecurity
in
the
current
work-from-home
environment
and
liquidity
risk
management.
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
enhancing
services
and
controlling
costs,
as
reflected
in
its
outsourcing
of
certain
administrative
functions,
and
growth
opportunities,
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
65
franklintempleton.com
Annual
Report
as
evidenced
by
its
recent
acquisition
of
the
Legg
Mason
companies.
The
Board
also
noted
FT’s
attention
focused
on
expanding
the
distribution
opportunities
for
all
funds
in
the
FT
family
of
funds.
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.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
November
30,
2020.
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
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
considered
that
the
income-oriented
investment
objective
of
the
Fund
is
the
primary
focus
for
the
Fund’s
portfolio
management
team
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
annualized
income
return
basis
is
consistent
with
investor
expectations
and
the
Fund’s
investment
goals.
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
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,
Class
M
shares
and
Investor
Class
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
10
other
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
above
the
median
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
further
noted
that
the
Fund’s
Management
Rate
was
less
than
6
basis
points
higher
than
the
median
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,
2020,
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
further
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
66
franklintempleton.com
Annual
Report
noted
management’s
representation
that
the
profitability
analysis
excluded
the
impact
of
the
recent
acquisition
of
the
Legg
Mason
companies
and
that
management
expects
to
incorporate
the
legacy
Legg
Mason
companies
into
the
profitability
analysis
beginning
next
year.
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
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
Statement
of
Investments
The
Fund
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
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
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
67
franklintempleton.com
Annual
Report
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
06/21
©
2021
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
Templeton
Distributors,
Inc.
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
 
 
Item 4.
Principal Accountant Fees and Services.
 
(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 $78,691 for the fiscal year ended April 30, 2021 and $84,774 for the fiscal year ended April 30, 2020.
 
(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 $0 for the fiscal year ended April 30, 2021 and $10,000 for the fiscal year ended April 30, 2020. The services for which these fees were paid included professional fees in connection with tax treatment of equipment lease transactions.
 
(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, 2021 and $4,343 for the fiscal year ended April 30, 2020. 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 $36,800 for the fiscal year ended April 30, 2021 and $190,144 for the fiscal year ended April 30, 2020. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, valuation services related to a fair value engagement, and benchmarking services in connection with the ICI TA Survey.
 
(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 $36,800 for the fiscal year ended April 30, 2021 and $204,487 for the fiscal year ended April 30, 2020.
 
(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.


 
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
Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
 
 
(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and
Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer
 
 
 
 
 
 
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 25, 2021
 
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 25, 2021
 
 
 
By S\Robert G. Kubilis_________________________
     Robert G. Kubilis
     Chief Financial Officer and Chief Accounting Officer
Date June 25, 2021