July 31, 2000



Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549-1004

ATTN:  Ms. Patsy Mengiste, Document Control - EDGAR

RE:    AXP Federal Income Fund
       File No. 2-96512/811-4260

Dear Ms. Mengiste:

Registrant  certifies  that the form of  prospectus  and Statement of Additional
Information that would have been filed under paragraph (c) of Rule 497 would not
have differed from that contained in the most recent  Registration  Statement or
Amendment,  and the text of the most recent Registration  Statement or Amendment
has been filed electronically.

Sincerely,

AXP FEDERAL INCOME FUND, INC.



/s/ Leslie L. Ogg
    Leslie L. Ogg
Vice President, General Counsel and Secretary

LLO/MLL/ps